Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the CFP Board announced a series of proposed changes to its certification requirements, including an increase in required Continuing Education (CE) hours for current certificants to 40 hours every two years (up from the current 30 hours) and, for candidates for certification, a tightening of the Experience requirement (so that qualifying experience for the 6,000-hour “Standard Pathway” would be required to address at least three (rather than just one) of the seven primary elements of the financial planning process to ensure that candidates are engaged. Together, these proposed changes (which are currently open for public comment) suggest CFP Board is seeking to ensure that those with the marks not only have sufficient education and experience upon receiving them, but also maintain and sharpen their skills over the course of their careers.
Also in industry news this week:
- A benchmarking study from Charles Schwab shows that median compensation for financial planners at RIAs is well into the six figures, though actual salaries appear to vary widely
- The U.S. Senate appears poised to pass legislation that would eliminate the long-established WEP and GPO provisions and increase the Social Security benefits of many state and local workers in the process
From there, we have several articles on investment planning:
- While index funds are often viewed as ‘passive’ investments, advisors can add value for their clients by exploring the key differences in how certain funds are structured
- A review of the academic literature on whether historical prices can help determine future investment returns
- While the use of model portfolios can be a time-saving alternative for advisors compared to creating custom portfolios for each client, a study of return data suggests that those using them to improve performance could be disappointed
We also have a number of articles on advisor marketing:
- How creating a marketing calendar can help advisors improve their efficiency and prevent important tasks from falling through the cracks
- Three advisor marketing tactics that don’t come with a hefty price tag for advisors
- How advisory firms can align their websites to match the needs and personalities of their ideal target clients
We wrap up with three final articles, all about financial lessons for children:
- Financial literacy lessons parents can offer at each stage of their children’s development
- How parents can approach talking about their own financial situation with their kids, from the time they are in elementary school to when they become adults
- Why the greatest gifts parents can offer their children might not come with a bow on top
Enjoy the ‘light’ reading!