Home > Aspiring RIAs > Financial Roundup: Saving for Retirement & Planning for the Future

Here is this week’s roundup of must-read news for financial advisors:

Practice Management

Solo advisors appear to be a prime target for RIAs eyeing a merger or acquisition, according to an article at Financial Planning. Of those RIAs on the lookout, more than 60% plan to acquire a solo advisor and 47% want to buy a smaller firm’s book of business, a survey by FA Insight finds. Read the full story below. Also, Helen Modly of Focus Wealth Management describes how newer planners can use a “box approach” to explain the financial planning process to a prospective client. In this method, boxes are labeled cash flow, risk management, investments, and goals. But what’s outside the boxes is also important — things clients can’t entirely control (like taxes) but that they can address with appropriate strategies. Read the full story at Morningstar, below.

The next hot M&A target? Solo advisers
By Charles Paikert
Source: Financial Planning

Often overlooked, solo advisers now appear to be the belles of the M&A ball. Over 60% of RIAs who are considering an M&A transaction over the next five years plan to acquire a solo adviser, and 47% would like to take over a smaller firm’s client accounts by buying its book of business, according to a survey of RIAs by FA Insight, a division of TD Ameritrade Institutional.


Unpacking a Client’s Financial Box
By Helen Modly and Barbara Ristow
Source: Morningstar

How do you demonstrate the value of the comprehensive financial planning process to a prospective client? How can you help newer planners gain comfort handling an initial planning interview? What we call the “box approach” makes sense to prospective clients and is easy for newer advisors to master.


Breakaways/Aspiring Advisors

Advisors and others who want to get started on their CFP certification may wonder which program is “best” — or if it even matters where they study. Michael Kitces, in a post at his Nerd’s Eye View blog, opines that for most people, the “where” doesn’t matter because most clients rarely ask and don’t really care. He does provide several tips for those considering a CFP education, such as: Take a look at each program’s educational curricula. His full post follows. Also, Financial Advisor talks with Paul Tinnirello, the chief operating officer at Bleakley Financial Group, who coaches new as well as experienced advisors, helping them make the transition to independence. He has gone through the transition himself. See the link to the story below.

Does It Matter Whether You Get Your CFP From A “Top Ranked” Program?
By Michael Kitces
Source: Nerd’s Eye View blog

This week I discuss why for most people, it doesn’t really matter if you get your CFP certification from a “top ranked” CFP program or not, and what criteria you should really focus on instead when getting your CFP education. First and foremost, the primary reason that it doesn’t matter where you get your CFP education is that most clients really don’t care what school you went to school. They just rarely ask.


Speaking From Experience: Advisor Coaches RIAs On Breaking Away
By Karen DeMasters
Source: Financial Advisor

Paul Tinnirello has been an advisor and has been through the transition from a large firm to independence. Now he is coaching other transitioning advisors. As chief operating officer at Bleakley Financial Group, a financial planning and wealth management firm in Fairfield, N.J., Tinnirello has taken on the job of coaching new and experienced advisors at his firm. “My role sort of evolved over time because there was a need,” he says.


Retirement Planning

A recent Retirement Confidence Survey from the EBRI shows that 37% of workers say they need $1 million or more to retire, an increase from the 19% who gave that figure a decade ago. Many won’t reach that goal without a big push in savings, a Bloomberg article notes. See the complete story below. Also, robo advice platforms are attracting the assets of retail investors, but what about the retirement plan industry? A WealthManagement.com article describes the benefits of robo technology for plan consultants and sponsors, such as providing aggregated data. See the link below.

Two in Five Americans Say They’ll Need $1 Million to Retire

by Suzanne Woolley
Source: Bloomberg

Setting a retirement savings goal can feel like a crap shoot. How can you calculate your expenses, especially for health care, five, 10, 50 years from now? If you’ve punted, you have company. Only 41 percent of workers have even tried to figure out how much they need in savings to retire comfortably.


Is There a Robo in Your Future?
There are benefits to adopting the technology. Yes, even for plan advisors.

By Ed McCarthy
Source: WealthManagement.com

Robo advisors continue to attract headlines and assets. As of late 2016/early 2017, Vanguard Personal Advisor ($52 billion of assets under management), Schwab Intelligent Portfolios ($12.3 billion) and Betterment ($7 billion) led the field, according to a recent Moody’s Investor Services report. Robos are off to a good start with retail investors, but can they convince retirement plan consultants and sponsors to sign on? Industry participants cite several potential benefits to adopting the technology.

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