Financial Planners’ Weekend Reading List (June 15-16)

### Financial Planners Find Success in Advisory Teams

Financial planners have found success in advisory teams, according to a recent study. These teams tend to have higher assets under management per advisor, serve wealthier clients on average, and experience stronger growth compared to solo advisors. The efficiencies gained from sharing expertise and back-office support are key factors contributing to this success. However, it is important to note that these findings could reflect self-selection amongst advisors, with some opting to remain as solos while others seek greater growth opportunities by joining teams.

In addition to the success of advisory teams, this week’s industry news highlights the impact of Private Equity (PE) capital on the RIA M&A market and the willingness of ‘DIY’ investors to work with human advisors. On the retirement planning front, articles discuss practical considerations for advisors engaging in Roth conversions, the benefits of a rising equity glide path, and the importance of tools beyond asset allocation for successful retirement navigation.

Practice management articles cover topics such as creating a compensation plan that aligns with firm values, attracting and retaining top talent through various incentives, and understanding the preferences of Gen Y and Gen Z advisors. Finally, the issue wraps up with articles on overcoming limiting beliefs, including tactics for combatting impostor syndrome, the role of self-compassion in resilience, and a step-by-step approach to shifting towards more empowering beliefs.

### FAQ

#### 1. Why do advisory teams tend to have higher assets under management per advisor?
Advisory teams benefit from sharing expertise and back-office support, leading to increased efficiencies and higher assets under management per advisor.

#### 2. What are some practical considerations for advisors engaging in Roth conversions?
Advisors should assess the “effective marginal rate” paid on the conversion and decide when during the year to complete the conversion(s).

#### 3. How can firms attract and retain top talent?
Firms can use cash bonuses, equity opportunities, and non-monetary perks to attract and retain top talent.

### Conclusion

Financial planners can learn valuable lessons from the success of advisory teams, the impact of PE capital on the industry, and the willingness of investors to work with human advisors. By staying informed on industry trends, exploring new strategies for retirement planning, and implementing effective practice management techniques, advisors can enhance their services and better serve their clients. Overcoming limiting beliefs and fostering a resilient mindset are also key components of professional growth and success in the financial planning industry.

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