Weekend Reading for Financial Planners (July 24-25)

Weekend Reading for Financial Planners (July 24-25)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with industry buzz that a new Senate bill would remove the “Specified Service Trade Or Business” (SSTB) limitations on the Qualified Business Income deduction, effectively opening the door for financial advisors to claim the 20%-of-income deduction… with the caveat that those financial advisors under $329,800 of income (as married couples, or $164,900 for individuals) could already claim the QBI deduction, while the new rules would begin to phase out the QBI deduction for everyone above $400,000 of income. Which means high-income advisors who couldn’t claim the QBI deduction still won’t be able to under the new rules anyway (if they’re even passed by Congress, which remains to be seen).

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

  • A Capgemini World Wealth Report highlights that high-net-worth investors are increasingly becoming adopters of robo-advisors… and also increasingly want to hire human advisors for their more complex advice needs beyond what an automated investment platform can provide
  • Vanguard is ramping up its own push into financial advice, as the 0.30% AUM-fee Personal Advisor Services platform surpasses $200B of AUM (albeit mostly from Vanguard users who weren’t likely to hire a higher-cost independent advisor anyway?)

From there, we have several articles on the current regulatory environment:

  • The SEC issues a new Risk Alert on hybrid advisors whose brokerage platforms may be ‘double-dipping’ on wrap accounts by also earning fees on underlying products
  • Massachusetts charges Schwab with failing to oversee an independent advisor who was billing clients even after his licenses were terminated… raising questions of what role RIA custodians should play in compliance oversight?
  • The CFP Board’s new Managing Director of Enforcement responds to criticism about whether CFP Board is really ready to take enforcement seriously and says CFP Board is stepping up

We’ve also included a number of articles on advisor marketing, including:

  • Consumers are reporting that they don’t place much trust in media financial personalities, raising questions about media PR as an advisor marketing strategy
  • Advisors often don’t claim enough credit for their own improvements to clients, and should ‘market’ their new offerings
  • Tips on which social media platforms really drive new leads to advisors (hint: it depends on the type of clientele you’re trying to attract!)

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

  • How to distinguish between being “busy” and really improving your “productivity” (which isn’t about efficiently doing more, but finding the focus to do the fewer things that really matter)
  • Tips to get yourself ‘unstuck’ if you feel like you’re spinning your wheels and can’t move forward
  • How being more willing to change your mind may seem scary (no one wants to be seen as a “flip-flopper”) but research shows it is actually associated with greater wellbeing!

Enjoy the ‘light’ reading!

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