Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the “Social Security Fairness Act” was signed into law this week, eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) provisions, which previously reduced the Social Security benefits of individuals who worked in both “covered” (jobs for which they paid into the Social Security system) and “non-covered” (those in which they didn’t, typically public service jobs that come with their own pensions) positions during the course of their career (in the case of WEP) or the spousal or survivor benefits received by individuals who worked in “non-covered” jobs (in the case of GPO). Notably, the new law could affect a range of advisory firm clients, with those who were subject to WEP/GPO and currently receive Social Security standing to see a bump in their benefits while individuals subject GPO who didn’t file for Social Security spousal benefits (because they would have been eliminated by GPO reductions) could find that they are now eligible to receive benefits (but will need to apply for them!).
Also in industry news this week:
- A survey indicates that nearly 71% of new financial advisors drop out in the first 5 years, with firms offering better training and mentorship opportunities (as well as entry-level positions that don’t come with business development targets) seeing higher employee retention rates
- How broker-dealer self-regulatory organization FINRA could face a range of political and judicial challenges to its authority in the coming years
From there, we have several articles on investment planning:
- How advisors can address client concerns that elevated stock valuations might portend a near-term market decline
- While clients with an allocation to international stocks might be frustrated with their underperformance compared to the U.S. market in recent years, historical data suggest that geographic diversification could have benefits in the longer term
- A historical study indicates that periods of high market concentration (such as today) tend to be associated with bull markets and aren’t predictive of the timing of future bear markets
We also have a number of articles on advisor value:
- Five ways financial planners can exceed client expectations in 2025, from educating themselves on technical topics of value to their ideal target client to increasing the number of touchpoints they have with clients (without necessarily taking up significantly more of the advisor’s time)
- How human advisors can differentiate themselves from financial advice provided from generative artificial intelligence tools, which are expected to become increasingly popular in the next few years
- How advisors can use feedback surveys to determine what their clients value the most from their relationship and adjust their service model to provide even greater value
We wrap up with three final articles, all about credit card rewards:
- How advisors can help clients determine the best credit card rewards approach for their unique situation, potentially enabling them to earn thousands of dollars worth of benefits and perks over the course of the year
- While collecting (and using) credit card rewards points can be a lucrative proposition, it can be worth weighing the benefits against the time and potential financial costs of doing so
- How taking a strategic approach can unlock the greatest value from accumulated credit card rewards, airline miles, and hotel points
Enjoy the ‘light’ reading!