Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the RIA industry (including both consumer-facing “retail” RIAs and larger asset managers that have investment advisory businesses) notched record highs for assets under management, total clients, and non-clerical employment in 2025, while the total number of RIAs grew for the 13th consecutive year. While strong market performance no doubt contributed to the 22.3% AUM growth experienced during the year, the report found that growing public awareness of the fiduciary responsibilities of RIAs and firms’ expanding reach to different types of clients (e.g., through alternative fee models and digital advice platforms) appear to be drivers of the growing popularity of RIAs amongst those seeking financial advice.
Also in industry news this week:
- An SEC risk alert issued this week flags that a number of firms have been cited during recent examinations for failing to properly disclose certain fee arrangements, including how they handle (and receive revenue for) client cash holdings
- A report finds that while referrals remain the most popular way high-net-worth individuals find an advisor, only a minority rely on a referral alone (often performing their own research), suggesting that a firm’s online presence could serve as a valuable supplement to an effective referral program
From there, we have several articles on investment planning:
- The “equity risk premium” is currently hovering around zero by certain measures (due in part to elevated stock elevations and rising bond yields), though it’s not necessarily a short-term timing indicator
- Why certain investors might be attracted to the availability of long-term Treasury Inflation-Protected Securities (TIPS) currently offering real yields nearing 3%
- While they’re not receiving as much attention as they did earlier this decade, I Bonds could be making a comeback given their ability to offer positive real yields
We also have a number of articles on Social Security:
- The latest report from the Social Security Board of Trustees finds that the trust fund that supports Social Security retirement benefits is expected to be exhausted in late 2032 (at which point it would be able to pay out 78% of scheduled benefits)
- A research study finds that while investing in equities might not be a panacea for Social Security’s funding issues, it could be effective as part of a broader plan that first shores up the system through more ‘painful’ changes to taxes and benefits
- How advisors can support clients who are nervous about the state of the Social Security system, including by modeling how a ‘worst case scenario’ and potential policy changes would affect their financial plan
We wrap up with three final articles, all about “Dying With Zero”:
- How financial advisors can help clients balance the need to save for the future with the immediate and long-term benefits that spending today can provide
- Why strict adherence to a “Die With Zero” philosophy could end up causing an individual greater stress and lead to financial precarity
- Given ‘expiration dates’ on certain types of experiences, spending relatively early in life could allow an individual take advantage of opportunities that might not be possible later on
Enjoy the ‘light’ reading!
