Weekend Reading For Financial Planners (Oct 22-23)

Weekend Reading For Financial Planners (Oct 22-23)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that Congress appears poised to pass a series of changes affecting retirement planning, dubbed “SECURE ACT 2.0”, by the end of the year. Provisions in the proposed legislation include gradually increasing the age for RMDs from 72 to 75, allowing extra ‘catch-up’ contributions to workplace retirement plans, and permitting companies to make retirement plan matching contributions for employees who are paying off student loan debt.

Also in industry news this week:

  • The wealth of those in the Millennial and Generation Z cohorts increased by 25% in 2021 and members of these generations are willing to pay for financial advice, according to a new study
  • New research demonstrates the importance for advisors of helping clients understand why they need to make certain decisions in the first place before giving planning recommendations

From there, we have several articles on retirement planning:

  • A discussion of the potential options for shoring up the Social Security trust fund as it is poised to be strained further by the recently revealed 8.7% Social Security COLA for 2023
  • How advisors can help clients review their Medicare coverage as the annual open enrollment period begins
  • How individuals can purchase more than the $10,000 individual limit of I Bonds, which continue to offer relatively high rates of return

We also have a number of articles on insurance and annuities:

  • As the number of RIA-friendly annuity products increases, advisors remain sharply divided regarding their value for clients
  • A Morningstar study suggests that annuities deliver ‘meaningful’ value to only about 5% of affluent investors, though annuity proponents suggest they also come with significant psychological benefits
  • Consumer satisfaction with life insurance and annuity companies dipped in 2022, reflecting a lack of understanding with the products they purchase and misaligned communication practices, offering lessons for financial advisors

We wrap up with three final articles, all about how to live a meaningful life:

  • Why outsourcing all of your non-work responsibilities is not a guaranteed formula for happiness
  • How advisors can help clients balance the tradeoff between time and money over the course of their lives
  • How psychological research suggests that individuals might want to consider changing the type of work they do in the second half of their careers

Enjoy the ‘light’ reading!

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