Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that according to a recent study by DeVoe & Company, only 42% of RIAs surveyed have written succession plans and either have begun to implement them or have already done so. The report suggests this might be due in part to increased RIA valuations and the assumption of some firm founders that next-generation employees won’t be financially able to buy out the firm from them, though additional data indicates that many firms don’t have career paths in place that could help next-generation advisors envision their path to firm ownership.
Also in industry news this week:
According to a recent survey, advisors are putting an increasing share of client assets into model portfolios, allowing for customization and time savings that advisors appear to be using to provide more comprehensive planning services
RIA M&A deal volume saw an annual record in 2024 as a lower cost of capital, increased valuations, and continued competition among RIA aggregators encouraged more transactions
From there, we have several articles on retirement planning:
Morningstar has released its annual estimate of the safe fixed withdrawal rate for new retirees, though the analysis suggests retirees (perhaps with the help of an advisor) could increase this rate through a more flexible withdrawal strategy
How certain retirement savers between the ages of 60 and 63 will be able to make “super catch-up” contributions in 2025 and beyond
A recent study indicates that most retirees claim Social Security benefits in the year they stop working, though those that delay can potentially benefit from a larger monthly check and tax planning opportunities
We also have a number of articles on insurance planning:
Why some wealthy homeowners have been unable to secure sufficient property insurance coverage
Why some clients might reevaluate their umbrella insurance coverage options amidst elevated claim expenses
How advisors can add value for clients by helping them consider the relationship between deductibles and the “pseudodeductibles” on their insurance policies and the premiums they pay
We wrap up with three final articles, all about sleep health:
While some of the ‘hottest’ sleep trends of 2024 might be tempting to try, most are relatively untested, and some could potentially lead to worse sleep
While exercise and good sleep can be part of a healthy lifestyle, the interaction between these two activities can be complicated for some individuals
Why some individuals’ efforts to maximize the quantity and quality of their sleep can sometimes backfire, leading to more stress and worse sleep
Enjoy the ‘light’ reading!
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