"Financial Planner's Corner" is a periodic series sharing advanced financial planning techniques, foundational planning principles, practice management tips, and more. In Focus (Highlights from particularly compelling content.) First, Carl Richards shares his thoughts on: • How to price services that clients describe as invaluable • Proper expectations for the pricing process • Avoiding unnecessary service expansion Key point: "It's common for us to struggle with how to price our services. How do you put a price on something when people use the words to describe its value…like 'I feel peaceful.' Or 'I'm not anxious anymore.' Or 'I'm not worried.' We recently held a retreat at my house and there were people there who said it was 'invaluable.' How do you put a price on that? Also, if we're thinking, I need to learn how to charge 'Enough' for the work I do — what is Enough? … The other challenge that advisors often point to is this constant need to 'complexify' things rather than keep them simple… What's the solution? Practice. Is anybody asking for it? Ask a question: What am I solving for here? Has anybody asked me for this thing? What could I 'delete' and no one would even notice?" Next, Meir Statman on ($): • The importance of viewing clients' "Life Well-Being" similar to an investment portfolio • Risk & return profiles of life domains in Well-Being Portfolios • A tool to help clients manage their Well-Being Portfolio Key idea: "I often note that the biggest risks in life are not in the stock market. If you want real risk, I say, get married. And if you want more risk, have children. People laugh, because the point is obvious. Yet that point is regularly lost when we speak about financial well-being, neglecting life well-being. Financial well-being comes when we can meet current and future financial obligations, absorb financial setbacks, and keep driving toward financial goals, such as adequate retirement income. Life well-being comes when we live satisfying lives, full of meaning and purpose. We need financial well-being to enjoy life well-being, but it is life well-being that we seek." Finally, ICYMI, Adam Van Deusen explains: • How Social Security is on an unsustainable path…yet will still be able to pay most benefits for decades • Policy options for sustainability • Strategies for discussing (& modelling) social security with clients Key takeaway: "…even if the OASDI Trust Fund were to become depleted, the system would continue to pay the majority of benefits that are simply covered by the ongoing receipt of significant payroll tax revenue. In fact, according to the Social Security trustees, the combined OASDI Trust Fund would still be able to pay 83% of scheduled benefits in 2035, when it is expected to be depleted, though this figure would decline to 73% of scheduled benefits by 2098... Taken separately, OASI would be able to pay out 79% of scheduled benefits when the trust fund is expected to become depleted in 2033. Which means, simply put, even if nothing is done to address the situation, the 'worst case' scenario (under intermediate economic assumptions affecting the system's future health) is that almost 4/5 of Social Security benefits would still be paid for the rest of the century!" Grab Bag (An assortment of content from inside & outside of the industry.) 2025: SLATs On The Brink Of A Rapid Rise In Popularity? [The National Law Review, Klaus Gottlieb] "It’s important to also consider and discuss with clients the potential drawbacks of SLATs. Some of the key disadvantages include: Risk of Divorce or Death: If the donor spouse and beneficiary spouse divorce or if the beneficiary spouse predeceases the donor spouse, the donor risks losing access to the assets in the SLAT. To mitigate this risk, a 'floating spouse' provision can be included in the trust, identifying the beneficiary as the 'person to whom the settlor is currently married' rather than naming a specific individual. Additionally, the trust can be drafted to allow the trustee to make loans to the donor spouse for further protection." Stop Doing Everything Yourself [Justin Welsh, JustinWelsh.me] "Earlier this week, I had an Intro call with Kevin, a solopreneur who’s been drowning in tasks. He’s tried hiring a full-time VA, but still found himself stretched thin, owning everything from editing his podcast to doing his own social media writing, scheduling, publishing, analyzing, and more. Sound familiar? IMO, most hopeful solopreneurs misunderstand solopreneurship. Yes, it’s about having one employee: yourself. But that doesn’t mean that you can’t get any help! Relying on part-time helpers is a smart way to create more time for yourself. This kind of system makes it possible for you to focus on the most important parts of your business and still have time for things you love outside of work. So if you're stuck trying to do everything yourself, or relying on a single assistant to handle a mountain of diverse tasks, I want to help you make a simple change. It’s called micro-outsourcing. … Each of these people might only work a few hours a week. But because they have specialized skills, they can drastically improve the quality and efficiency of your business. And they’ll cost a fraction of a full-time employee." Michael Kitces: 5 Trends Financial Advisors Should Know [Danny Noonan, Morningstar] "Philip Straehl: Which trend do you feel will be the most impactful over the next five years? Michael Kitces: Differentiation. There is a huge need for it, and it will be interesting to see the way the industry starts to change as we solve for that. Essentially, what happens when more advisors start pursuing specializations, niches, and various ways to focus in on their ideal client profile? If you look at the industry at large, more than 70% of advisors say they differentiate through above-average client service. But that math doesn’t work—70% of advisors can’t be above-average. When I look at a marketplace today, we’ve had this collective shift from selling products to providing advice. … And the industry is catching up. There are 100,000 CFPs [Certified Financial Planners], and the number is growing, gaining momentum. The CFP Board had its largest class of new CFPs over the past 12 months. It’s their 51st year, and they’re setting a new record, which to me indicates they are on the uptick of the S-curve of adoption. So, advice has been mainstreamed, and it’s only gaining more momentum. … And so that creates all sorts of pressures around how you really differentiate. The specialization model exists in pretty much every other profession out there. The generalist makes less than the specialist in medicine, law, and accounting." Whenever you're ready, there are 3 ways we can help you:
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