Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a recent survey by Charles Schwab of RIAs on its platform finds that many firms are looking beyond AUM to track their growth (at a time when market-driven AUM growth can hide possible organic growth challenges), with new client headcount, client referrals, and AUM-per-household emerging as popular data points. In addition, at a time when offering comprehensive planning services has become more common amongst advisory firms, RIAs appear to be leaning into providing exceptional client service and building a trusted reputation to differentiate themselves.
Also in industry news this week:
- Schwab executives this week offered updates on a variety of hot-button issues for RIAs on its platform, addressing its cash sweep program, lending offerings for clients, and advisor suspicions that the custodian is also acting as a competitor in part through its newly opened wealth management offices
- The SEC has released its 2027 examination priorities, which include a focus on Artificial Intelligence, both in terms of firms’ use of AI-powered tools and AI-enabled cyberthreats to client data and assets
From there, we have several articles on investment planning:
- How the relative strength of large-cap U.S. stocks in recent years has led some investors to fall into a ‘coretex’, (perhaps unintentionally) overweighting this market segment
- A research study examines the potential benefits of diversification not only amongst different investment factors, but also in the measures used to select investments within them
- How a “tolerance band” approach to rebalancing could reduce the number of rebalancing trades needed while keeping a portfolio largely aligned with its target asset allocation
We also have a number of articles on education planning:
- A rundown of several recent changes to the student loan environment that went into effect this year, including annual and aggregate loan limits and changes to repayment programs
- How financial advisors can help clients plan for the tax implications of student loan forgiveness
- Why some students (and their parents) are turning to the private student loan market amidst new restrictions in federal student loan lending (and how advisors can help clients assess their options)
We wrap up with three final articles, all about travel:
- A look into the cat-and-mouse game between credit card issuers and those looking to maximize their points and miles earnings
- While travel is often a stated goal of those entering retirement, looking deeper into the ‘why’ behind this ambition could lead to a more fulfilling experience
- How travelers can ease their way through airports using VIP packages that offer a smoother ride (for a price)
Enjoy the ‘light’ reading!
