Financial Advisor Reading List: May 2023

May 10, 2023 | Blog Posts

Another tax season has come and gone. That means RIAs (and other financial professionals) have a bit more headspace to decompress. With the summer around the corner, now is a good time to focus on business fundamentals that matter.

Here are some important topics to think about. We hope you enjoy this month’s reading list.

1. How to foster more productive client meetings by mitigating interruptions 

Source: Kitces

When was the last time you self-reflected on your conversational intensity level as an RIA? As a financial advisor, you possess a wealth of knowledge that your clients do not. 

“Interestingly, different people have been found to have unique conversational ‘intensity levels’, where a ‘high-intensity’ speaker perceives interruptions in the form of simultaneous talking as a natural way of showing interest in what the speaker has to say, and a ‘low-intensity’ speaker might find such an interruption rude and distracting, even if it wasn’t the interrupter’s intention to disrupt the conversation,” explains Meghaan Lurtz for the Kitces Blog.

Improved self awareness is the key to having meaningful conversations that foster a sense of trust. Read more about the topic from Lurtz, here.

2. Why financial advice has become a team sport

Source: Barron’s

Humans are complex. Naturally, individual investors have nuanced financial personalities. That’s why it takes a team of professionals, not just a solo RIA, to manage investors.

“What has changed is that financial advice has evolved into a team sport. Increasingly, advisory teams are the main mechanism for high-quality client service, innovation, and growth,” explains Matt Barthel in a Barron’s article.

A meaningful step for RIAs to take is to team up with fellow financial service professionals with complementary skills and expertise. More on the topic here.

3. A qualitative user study of an AI-empowered financial advisory system

Source: Data and Information Management

AI is getting a lot of attention right now. A big question that the RIA community is navigating right now is what to make of it all.

One team of qualitative researchers decided to study the experience of customers interacting with robo-advisors in real-life situations. Here were some findings:

  • A lack of transparency
  • Incomprehensible information
  • A general feeling of not getting great advice

Read more in this open access journal article via ScienceDirect.

4. Majority of Americans aren’t confident in the safety and reliability of cryptocurrency

Source: Pew Center

Cryptocurrency is an interesting trend in the global financial system. So what do Americans think about it? As a financial advisor, you may be getting questions from investors.

One way to think about the topic is through a demographic lens. The Pew Center recently published a study exploring how Americans think about cryptocurrencies. 

“A plurality of cryptocurrency users (45%) report that their investments have performed worse than they expected, a result that is statistically unchanged since July 2022, when the Center last asked about this,” explains the Pew Center. “In comparison, 15% say their investments have done better than expected, 32% say they have done about the same as expected and 7% are unsure.”

Explore this trend in greater depth here.

5. How banks can finally get risk management right

Source: Harvard Business Review

The Silicon Valley Bank collapse was (and continues to be) a nerve-wracking experience for the American public. At best, it will be an important lesson for leaders in the banking system.

“While much remains uncertain around what exactly went wrong with SVB and why, we at least know the right questions to ask” writes James C. Lam, President at risk management consulting firm James Lam & Associates.

“These questions will likely underscore the importance of having a strong and independent CRO, qualified directors on risk committees, clear risk appetite and mitigation strategies, appropriate risk disclosures, and effective regulatory oversight.”

It will be important for financial advisors to pay attention to this topic. Read more in this Harvard Business Review article.

6. Heirs likely to retain family’s financial advisor if relationship is established early

Source: Nuveen Wealth Inheritor Research Study 

For RIAs, multi-generational family relationships are extremely rewarding. So how can advisors take steps to work with parents and their children?

It’s about forming genuine connections earlier on, according to the Nuveen Wealth Inheritor research study.

“Advisors should position themselves as advice orchestrators, overseeing the client’s overall wealth and planning, and coordinating the efforts of other specialists,” said Joy Crenshaw, Head of Global Sales & Advisor Development at Nuveen. “We believe advisors can create a multi-generational pipeline of clients that can help fuel their practice growth.”

Read more from the study, here.

About CircleBlack

CircleBlack is an all-in-one technology platform for relationship-focused financial advisors. To learn how our software can help you build, manage, and grow your wealth management practice, get in touch to request a demo.

This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice.

Financial Advisor Reading List: September 2023

Summer is over; on to fall! Though with temps across the nation it seems we have more than a few dog days left.  Regardless, the working world is back - vacations are over, kids are back to school, and the office often has the best AC.  While you’re staying out of the...

Financial Advisor Reading List: August 2023

Back to school season is around the corner. That means a lot of financial advisors are wrapping up summer vacations, prioritizing time with family, and getting ready for the fall. Meanwhile, life at work may be feeling busier than ever due to economic uncertainty....

Ready to try CircleBlack?

See how we can help you simplify your daily tasks, delight your customers, and grow your practice.