Weekend Reading For Financial Planners (Aug 13-14)

Weekend Reading For Financial Planners (Aug 13-14)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the U.S. Senate has passed the Inflation Reduction Act, which while being light on individual tax changes, nevertheless includes some important financial planning provisions such as prescription drug price relief for Medicare enrollees, continuation of expanded Affordable Care Act healthcare premium subsidies, and tax credits for energy efficiency upgrades to homes.

Also in industry news this week:

  • FINRA has submitted a revised proposal to reform the process for broker-dealers to request expungement of client disputes from their public record, which allows state securities regulators to be informed of and involved in the arbitration hearings that decide whether the expungement is granted
  • As RIA firms’ challenges in attracting and retaining talent have continued, firms have needed to reduce their business development activities to stay within their existing staff’s capacity (compounding the challenges of growing firm revenue during a bear market that has reduced most firms’ assets under management)

From there, we have several articles on Mergers & Acquisition (M&A) trends:

  • M&A activity so far in 2022 is set to exceed 2021’s record pace despite economic headwinds, meaning there could simply be a ‘new normal’ of higher activity regardless of the economic environment
  • With the shift from bull market to bear market, the risks of M&A deals have shifted for sellers of RIA firms, leading to a significant change in how many M&A deals are structured so sellers can still get some ‘upside’ if markets recover from here
  • With the pace of M&A deals being dominated by a small number of cash-rich ‘serial acquirers’, smaller RIAs looking to acquire firms need to rely more on their ability to match the selling firm’s culture and values to find a competitive advantage with the mega-firms

We also have a number of articles on retirement:

  • Though owning an RV and traveling the country is a popular retirement pastime, those with the resources can turn their motorhomes into a luxury vacation home on wheels (at about the same price as buying a second home)
  • Many retirees seek to relocate after their working years, but deciding where to move requires some reflection both on the lifestyle the retiree wants to lead as well as the practical and financial considerations of doing so
  • A number of rural areas are seeing a ‘gray wave’ of retirees moving in to take advantage of natural attractions, low costs of living, and a leisurely pace of life (though as those areas grow in popularity and size, they might not be quite as attractive as they once were)

We wrap up with three final articles, all about career decisions:

  • On the heels of the ‘Great Resignation’ of 2021, many employees who changed jobs (and the employers who hired them) are now realizing their decisions might have been short-sighted
  • Though employees and business owners often feel pressured to follow what others have done to become successful, embracing one’s own unique properties can make it easier to stand out from the crowd
  • The pandemic has led many workers to embrace the idea of taking pre-retirement breaks from work – but doing so involves working around the retirement structure that is structured around the ‘traditional’ idea of retirement

Enjoy the ‘light’ reading!

Read More…


Leave a Reply

Your email address will not be published.