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 features might be attributed to robust market efficiency, companies additionally boosted their natural progress in the course of the yr, with companies with lower than $250M AUM displaying 9.2% web natural progress and bigger companies seeing 5.0% progress (whereas RIAs as an entire additionally maintained a 97% shopper retention fee). Within the report, Schwab additionally recognized key traits of “high performing” companies (together with having an outlined superb shopper persona and an outlined shopper worth proposition) and the important thing strategic initiatives respondents plan to pursue (with producing shopper referrals topping the listing for the third consecutive yr, adopted by recruiting new workers).
Additionally in trade information this week:
- A latest report highlights the fast progress of RIA “consolidators”, with advisors searching for them out for compliance and succession assist, although issues a few 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 might 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 now have a number of articles on tax planning:
- The One Massive Lovely Invoice Act (OBBBA) has made the Part 199A tax deduction everlasting (i.e., and not using a scheduled sundown date), doubtlessly benefiting not solely business-owner purchasers but in addition those that personal REITs of their portfolios as effectively
- The OBBBA has additionally made everlasting the Certified Alternative Zone program (albeit with a narrower scope and up to date guidelines), offering some purchasers with the prospect to defer features on the sale of sure funding property
- How charitable planning issues would possibly change underneath 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 doubtlessly get a tax profit for (not less than a few of) their charitable presents
We even have various articles on retirement planning:
- How monetary advisors can assist purchasers discover their funding choices amidst an anticipated enhance within the prices of long-term care within the coming years
- The planning issues surrounding unpaid care, from the advantages of making a formalized care plan effectively upfront of a must money circulate planning for youthful purchasers who is perhaps accountable for (unpaid) caregiving sooner or later
- An evaluation of the choices for advisors and their purchasers who face a premium enhance 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 widespread days of the week to touring throughout “shoulder season”
- How State Division staff created a web-based system that permits many People to resume their passports on-line in as little as quarter-hour (and achieved overwhelmingly optimistic evaluations within the course of)
- Amidst crowding in lots of airport lounges, some airways and bank card corporations are seeking to open smaller lounges providing extra informal, grab-and-go choices for his or her prospects
Benefit from the ‘mild’ studying!
