Weekend Reading For Financial Planners (October 17–18)

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week’s edition kicks off with the news that a survey by Vanguard of investors on its platform found that many of those who have engaged with Artificial Intelligence (AI) tools for money management or planning actually value their (human) advisor more because of these interactions, with very few indicating the opposite. Further, while the broader pool of investors surveyed appeared to largely use AI for quick (and free) answers to questions, there was significant discomfort amongst respondents when it comes to letting AI act on their behalf. Which suggests that while the ultimate level of ‘competition’ from AI for human advisors continues to develop, advisors who are able to lean into what makes them human (e.g., forging a deep understanding of their clients’ situations) as well as serving as a trusted source of information and reliable actor when it comes to executing decisions could see greater interest from prospects and loyalty from clients in the years ahead.

Also in industry news this week:

• The Social Security Administration announced this week that the annual cost of living adjustment for 2027 will be 3.6% (though potential changes to shore up the Social Security system could end up playing a larger role in seniors’ long-term finances)
• Congress has passed legislation that would change the names of key ages related to claiming Social Security benefits, linking them more closely to the size of benefits received

From there, we have several articles on Required Minimum Distribution (RMD) planning:

• 10 common RMD mistakes (and how financial advisors can help clients avoid them), from challenges in correctly coordinating RMDs across accounts to errors made when leveraging the ‘still working’ exception
• The pros and cons of taking RMDs at the beginning, end, or throughout the year
• Why the mechanics of taking RMDs for recently inherited IRAs can differ by custodian and lead to challenges for beneficiaries

We also have a number of articles on investment planning:

• An analysis of historic asset class performance when bond yields spike suggests that while there tends to be short-term pain for longer-maturity Treasuries, there could be some light at the (unknown) end of the tunnel
• Why investors might consider rebalancing at a time of higher bond yields and when many portfolios likely have veered from their target asset allocation
• While some investors might be tempted by the current yields offered by longer-maturity Treasuries, cash-like instruments could provide a more attractive risk-reward balance for assets needed to cover shorter-term expenses

We wrap up with three final articles, all about being a better conversationalist:

• While some individuals dislike ‘small talk’, research suggests it can provide professional and community-building benefits
• Strategies to make yourself easier to talk to, from making a clear introduction to offering intriguing details about your life
• 13 questions advisors can use to better get to know new clients and their planning needs

Enjoy the ‘light’ reading!

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