Weekend Reading for Financial Planners (July 10-11)

Weekend Reading for Financial Planners (July 10-11)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with a controversial discussion of the CFP Board’s recent ramp-up of enforcement in the aftermath of the July 2019 Wall Street Journal expose about the organization promoting CFP certificants “in good standing” on the CFP Board’s website even as they had material regulatory infractions reported on FINRA’s BrokerCheck, and raises the question of whether the CFP Board is still doing enough to really clean up its ranks, or if the organization is actually trying to back away from its own standards by eliminating its own marketing messaging around being “the highest standard” and simply promoting the (admittedly still positive) general benefits of financial planning instead?

Also in the industry news this week are a number of other interesting legislative headlines:

  • A new Senate Bill would restore the tax deductibility for retirement advice… but only if paid via an employer’s payroll system, which isn’t feasible for most independent advisors
  • Whether the Senate may revisit a prior proposal to limit the maximum size of IRAs to ‘just’ $5M (in response to the ProPublica story about Peter Thiel’s $5B Roth IRA)

From there, we have several interesting articles on retirement planning:

  • A new BCG study finds that mass affluent retirees are still underserved… advising large banks and broker-dealers to encroach further on what has historically been the domain of independent financial advisors
  • An Allianz consumer study finds that a lot of consumers are still reluctant to talk to their financial advisors about their retirement fears
  • The thought process of one self-directed consumer who decided to hire a financial advisor for the first time when transitioning to retirement (and what were, and were not, factors in his decision)

We’ve also included a number of articles on cash flow and budgeting, including:

  • Morgan Housel’s take on 10 “Money Rules” to live by
  • How self-imposed frugality to achieve early retirement can cause a ‘frugality syndrome’ where retirees can’t enjoy their money even once they do retire
  • Alternatives to minimize the zero-yield cash of an emergency savings fund, including by leveraging an HSA instead (just keep the receipts!)

We wrap up with three final articles, all around the theme of personal productivity:

  • A review of several popular to-do and project management tools to stay self-organized
  • Why “5” appears to be the optimal number of hours of productive work every day
  • Tips on how to better focus yourself and make it easier to do the things that actually have the most positive impact in our businesses and our lives

Enjoy the ‘light’ reading!

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