Weekend Reading for Financial Planners (Sept 4-5)

Weekend Reading for Financial Planners (Sept 4-5)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with a review of the latest Social Security trustees report, which shows the Social Security trust fund is set to deplete one year earlier than previously projected (2033), but 4 years further out than was feared (with original estimates suggesting the pandemic could have curtailed it to be as early as 2029), though in the end the real question is simply which of the known levers (between a 21% benefits cut or a 3.6% payroll tax rate increase, or other adjustments to the system) will eventually get implemented… albeit perhaps not until a few months before 2033 when the immediacy of a deadline builds the necessary political will to make changes?

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

  • A Spectrem Research study shows that Millennials are the least satisfied with the responsiveness of their advisors, but are overwhelmingly (nearly 4X) more likely to refer their advisors when they are satisfied
  • An Ensemble Practice mid-year study shows rapid growth in advisory firms, with client count up 6%, AUM up nearly 14%, and 63% of firms hiring for a new position

From there, we have several tax planning articles, including:

  • How to leverage a solo 401(k) plan to make giant “mega backdoor” Roth contributions
  • The resurgence of Private Placement Life Insurance (PPLI) as a HNW tax-sheltered savings strategy after the Consolidated Appropriations Act of 2020 improved cash value accumulation potential
  • Other popular HNW tax planning strategies with a looming Biden tax increase, from IDGTs to tax gains harvesting

We’ve also included a number of retirement planning articles:

  • A JP Morgan study on how retirees really change their spending and portfolio allocations in retirement
  • Do’s and Don’ts for those retiring with a 7-figure portfolio (including why it’s so important to retire towards what comes next, not just away from what you’re leaving!)
  • Revelations from recent price data from hospitals on how much – or sometimes, how little – insurers are actually negotiating prices

We wrap up with three final articles, all around the theme of life tips we learn when we’re experienced that we can reflect back upon:

  • Tips to build your career more effectively in the earlier years
  • Suggestions for any 18-year-old getting ready to go to college about how to set a good foundation
  • Practical tips for anyone to live a better life, including invest in the things you spend the most time on or in (your bed and your office chair, which combined consume more than half of your life!), and don’t underestimate how much our wellbeing is impacted by the simple things in life (exercise, sleep, light, and nature)!

Enjoy the ‘light’ reading and the holiday weekend!

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