Weekend Reading For Financial Planners (August 8–9)

Enjoy the current installment of "Weekend Reading For Financial Planners" – this week's edition kicks off with the news that the latest "Mind the Gap" report from Morningstar finds that investors in U.S. equity mutual funds and ETFs both tended to achieve stronger returns compared to those in other fund categories during the 10 years ending in 2025 and had a narrower return 'gap' (representing the difference between the fund's total return and the actual return received by investors, who might trade in and out of the fund over time). Notably, negative return 'gaps' were larger for more volatile categories such as alternatives and sector equity (and for Bitcoin ETFs in particular, where the funds themselves achieved a positive return, but the average dollar invested in them had a negative return). Which suggests that financial advisors could have a valuable role to play not only in recommending an asset allocation for their clients, but also in helping them stay the course with it over time!

Also in industry news this week:

• A report finds that RIAs looking to hire are often willing to be flexible on a range of 'required' client attributes listed in job descriptions, including credentials and years of experience
• While advisory firms might maintain high client retention rates, they can still see assets managed decline based on client decumulation and other factors, according to data from Cerulli Associates, highlighting the value of attracting new clients (even for firms not in 'growth mode')

From there, we have several articles on Roth conversions:

• How using a net present value calculation can help show both the potential value of a (partial) Roth conversion as well as when clients might expect to receive a positive return on the 'investment' made to complete it
• Six questions to ask when considering making a Roth conversion, from how the client will pay any taxes due on the conversion to their proximity to key income thresholds for certain deductions, credits, and surcharges
• Why IRMAA bracket management can be an important consideration when deciding whether to engage in a (partial) Roth conversion in a given year (and how much to convert)

We also have a number of articles on estate planning:

• How financial advisors can support prospects and clients who recently received an inheritance (and why they might not start jumping into planning recommendations right away)
• How the struggle of dealing with "heirs' property" and the importance of executing proper legal documents when passing down real estate (particularly when multiple heirs are involved)
• The pros and cons of passing down assets before and/or after an individual passes away

We wrap up with three final articles, all about lessons learned from running an advisory firm:

• One advisory firm founder's reflections on 10 years in business, including the challenges of transitioning from 'growth' mode to 'maintenance' mode
• After 11 years in business, a founder breaks down revenue and expense data to identify the key decisions and tradeoffs he'll face in the years ahead
• 7 lessons an advisory firm founder learned during years 3–5 of his business, from time management to narrowing down his ideal client personas

Enjoy the 'light' reading!

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