Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that amidst a rare change in leadership at Charles Schwab, the outgoing and incoming CEOs hinted at relatively minor changes during remarks for advisors at its annual IMPACT conference this week, including an increased focus on lending services for high-net-worth clients and a desire to expand direct access to cryptoassets. Further, amidst grumbling from some firms, incoming CEO Rick Wurster reiterated a pledge that Schwab (which offers its own direct wealth management services) will not seek to compete for clients with RIAs on its platform, seeing opportunities to pursue prospective clients currently unserved by either group.
Also in industry news this week:
- Why the announced acquisition of RIA custodian TradePMR by retail brokerage firm Robinhood could prove to be a boon for RIAs on TradePMR’s platform, who could receive a wave of referrals from Robinhood’s massive base of next-generation retail clients
- How Morningstar is cutting the “Medalist Ratings” of thousands of funds amidst a change to its ratings methodology that could provide advisors with a better picture of forward-looking performance expectations
From there, we have several articles on retirement planning:
- A recent survey demonstrates benefits for advisors (and their clients) in specializing in crafting portfolios specifically designed to generate retirement income for clients
- How a recent study finds that matching the timing and size of portfolio withdrawals to the income needs of retired clients could allow for greater portfolio sustainability than more fixed approaches
- An exploration of the considerations for advisors who want to create ‘retirement paychecks’ for their clients, from choosing an investment approach to generate sufficient income to deciding how to transform assets in a portfolio to dollars in clients’ bank accounts
We also have a number of articles on practice management:
- Why offering profits interests could be an attractive way for firms to reward top-performing employees without giving up control of the business
- While awarding equity grants is often seen as a way to align employee interests with those of the firm, this practice might not be as attractive for certain employees as it might seem
- The challenging questions firms face when creating ‘fair’ compensation structures, from deciding who is bringing the most value to the firm to considering how (and whether) to issue bonuses during periods of lower firm revenue
We wrap up with three final articles, all about health:
- While intermittent fasting has been shown to offer some weight loss benefits, some research suggests it might not be the ‘health hack’ it was once thought to be
- Several scientific studies have found nutritional benefits to eating ice cream, but the true cause of this finding is unclear
- Why the purported presence of “Blue Zones”, regions whose residents show remarkable longevity, might be due to questionable recordkeeping rather than specific traits of these communities
Enjoy the ‘light’ reading!
