Benefit from the present installment of “Weekend Studying For Monetary Planners” – this week’s version kicks off with the information that Charles Schwab’s annual RIA benchmarking research discovered that median agency AUM elevated 16.6% in 2024, with income up by 17.6%. Whereas a few of these good points could be attributed to robust market efficiency, companies additionally boosted their natural progress through the 12 months, with companies with lower than $250M AUM displaying 9.2% internet natural progress and bigger companies seeing 5.0% progress (whereas RIAs as a complete additionally maintained a 97% shopper retention charge). Within the report, Schwab additionally recognized key traits of “high performing” companies (together with having an outlined supreme shopper persona and an outlined shopper worth proposition) and the important thing strategic initiatives respondents plan to pursue (with producing shopper referrals topping the record for the third consecutive 12 months, adopted by recruiting new employees).
Additionally in trade information this week:
- A current report highlights the fast progress of RIA “consolidators”, with advisors looking for them out for compliance and succession assist, although issues a couple of potential lack of autonomy and independence from becoming a member of one stay
- The Treasury has delayed till 2028 the efficient date for a proposed Anti-Cash Laundering (AML) rule that will have affected most SEC-registered RIAs and plans to revisit the substance of the rule to maybe tailor it extra particularly to concentrate on companies that face the best AML threat
From there, we’ve got a number of articles on tax planning:
- The One Large Lovely Invoice Act (OBBBA) has made the Part 199A tax deduction everlasting (i.e., with out a scheduled sundown date), probably benefiting not solely business-owner shoppers but additionally those that personal REITs of their portfolios as nicely
- The OBBBA has additionally made everlasting the Certified Alternative Zone program (albeit with a narrower scope and up to date guidelines), offering some shoppers with the possibility to defer good points on the sale of sure funding property
- How charitable planning concerns may change beneath the OBBBA, from the brand new 0.5% AGI ‘ground’ on the deductibility of charitable contributions that begins in 2026 to the flexibility of non-itemizers to probably get a tax profit for (at the very least a few of) their charitable presents
We even have quite a lot of articles on retirement planning:
- How monetary advisors can assist shoppers discover their funding choices amidst an anticipated improve within the prices of long-term care within the coming years
- The planning concerns surrounding unpaid care, from the advantages of making a formalized care plan nicely prematurely of a must money circulation planning for youthful shoppers who is perhaps chargeable for (unpaid) caregiving sooner or later
- An evaluation of the choices for advisors and their shoppers who face a premium improve on their long-term care insurance coverage insurance policies
We wrap up with three closing articles, all about journey:
- Why flexibility is the important thing to saving on flights, from flying on much less well-liked days of the week to touring throughout “shoulder season”
- How State Division staff created an internet system that permits many Individuals to resume their passports on-line in as little as quarter-hour (and achieved overwhelmingly constructive evaluations within the course of)
- Amidst crowding in lots of airport lounges, some airways and bank card firms are seeking to open smaller lounges providing extra informal, grab-and-go choices for his or her clients
Benefit from the ‘mild’ studying!