Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that amidst reports that Charles Schwab is moving to boost its provision of advisory services to wealthier clients (potentially putting them in competition with RIAs that seek similar clients and use Schwab as their custodian and as a referral source), the firm indicated it doesn’t anticipate coming into direct competition with the RIAs it serves often. That assurance might be cold comfort, though, to RIAs who might see Schwab’s push as heightening the competitive landscape, perhaps leading some to look for a new custodian that doesn’t have its own wealth management division and/or seeking to further differentiate themselves in the eyes of their ideal target clients.
Also in industry news this week:
A survey identifies several factors driving differences in RIA employee compensation (and how much each contributes), including geographic region, years of experience, and business development responsibilities
Data from Fidelity showed a 41% increase in the number of Roth conversions being made by investors on its platform during the first quarter (perhaps spurred on by the market decline that occurred in March)
From there, we have several articles on tax planning:
How advisors can work with clients to assess the role of private company equity in their compensation package and proactively make decisions on how to handle it (which could ultimately result in significant tax savings)
Key planning moves for when a client experiences a liquidity event, from allocating newly freed-up cash to planning for a potentially larger tax bill
While putting early-stage growth company stock in a Roth IRA might seem like an attractive option, advisors can play a valuable role in ensuring clients don’t run afoul of “Prohibited Transaction” rules
We also have a number of articles on cash flow planning:
Different ways parents can support their children facing increasing housing costs, from contributing a down payment ‘match’ to making an intra-family loan
Why the decisions of whether and how to support adult child’s housing costs goes beyond financial considerations to include family dynamics and the child’s sense of independence
Five tax-friendly strategies parents could consider when helping a child buy a home
We wrap up with three final articles, all about writing:
What one author learned from writing 500 blog posts, with the importance of consistency topping the list
Six tips for becoming a better writer, including the benefits of reading extensively and the importance of clarity
How financial advisors can leverage their day-to-day experiences (and the common questions clients ask) to produce valuable written content
Enjoy the ‘light’ reading!
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