Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that the North American Securities Administrators Association (NASAA) has proposed an updated Model Rule that would allow state-registered advisors to use testimonials in their marketing materials, four years after the SEC issued its Marketing Rule allowingRead More... The post Weekend Reading For Financial Planners (August 2–3) first appeared on Kitces.com.
Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that the North American Securities Administrators Association (NASAA) has proposed an updated Model Rule that would allow state-registered advisors to use testimonials in their marketing materials, four years after the SEC issued its Marketing Rule allowing testimonials for SEC-registered advisors – which would, if finalized and adopted into states' securities regulations, finally resolve the discrepancy between the testimonial rules for advisors registered with the SEC (and states that chose to conform to the SEC rule) and those registered in states that continue to ban testimonials in marketing.
Also in industry news this week:
- A recent study projects that, despite the anticipated wave of retirements among Boomer advisors, advisor headcounts in the RIA channel will actually rise in the coming years as those retirements spur M&A activity that tends to favor firms moving from the broker-dealer channel over to the RIA side
- New data from FINRA and the SEC show that the overall movement of advisors from broker-dealers to the RIA channel shows no signs of slowing down, and with the number of broker-dealer representatives still greatly outnumbering RIA advisors, the trend could even accelerate in the near future
From there, we have several articles on tax planning under the One Big Beautiful Bill Act (OBBBA):
- While OBBBA introduced three new deductions for qualified tips, overtime wages, and auto loan interest, a maze of narrow restrictions on those deductions means that not everyone who thinks they'll be eligible to take the new deductions will actually be able to
- OBBBA made several amendments to the rules for Qualified Small Business Stock (QSBS) under Sec. 1202, most notably increasing the maximum QSBS gain exclusion to $15 million, creating a large potential tax windfall for the relatively few startup founders, employees, and investors holding QSBS
- OBBBA introduced new eligible expenses for 529 plan withdrawals, as well as an entirely new type of 'Trump' account for retirement savings on behalf of minor children, further expanding the range of savings options available for parents looking to put away funds on their children's behalf
We also have a number of articles on advisor technology:
- How concrete use cases have emerged in recent years for how AI tools can benefit advisors – although importantly, the time and cost savings represented by AI have less of an impact on advisor productivity than providing high quality advice and charging and appropriate amount for it!
- How generative AI tools introduce new risks to advisory firms including providing clients with false or misleading information or divulging sensitive client data, making it essential to review all AI-generated communications and avoid having the AI provide actual advice
- Although some expected that the rise of AI would lead to flashy tools generating new investment insights, the reality has been that AI has done far more to streamline advisory firms' back-office operations
We wrap up with three final articles, all about money, class, and psychology:
- While large families in TV and movies were traditionally often depicted as middle- or upper-middle class, large families today as shown on reality TV and in social media influencer posts are often surrounded by signs of wealth and luxury, reflecting how the cost of raising children has itself become something of a luxury good over the years
- How the booming wealth of the wealthiest 10% of households in the U.S. has meant that the traditional markers of millionaire privilege are no longer as exclusive as they once were
- How the early-2010s fad of "extreme couponing" faded as stores got less generous with their coupon policies – and how its spirit lives on today with points enthusiasts who get a similar thrill out of finding a good deal
Enjoy the 'light' reading!
