Displaying items by tag: advisors

Independent financial advisors switching broker-dealers increasingly want an easy transition, product flexibility, and strong support for growth. Consolidation in the industry has narrowed the pool of broker-dealers, pushing many advisors to consider RIA firms for greater freedom and fewer compliance burdens. 

Still, many advisors remain with BDs to retain transactional business alongside fee-based growth, making hybrid models attractive. Technology like DocuSign has lowered barriers to moving, allowing advisors to transition books of business more quickly and with less disruption. 

Competition for top talent is fierce, with broker-dealers offering higher transition payouts and low-cost platforms to attract advisors. 

Finsum: While RIAs continue to grow rapidly, BDs aren’t going away but must evolve to meet advisor demands or risk falling behind.

The IRS and Treasury finalized Secure 2.0 rules on catch-up contributions for 401(k) and similar plans, which apply to workers age 50 and older. Beginning in 2027, those earning more than $145,000 from their current employer must make catch-up contributions on a Roth (after-tax) basis, though some plans may implement the change as early as 2026. 

Until then, investors can still choose between pretax and Roth contributions if their plan allows. Experts say now is the time to work with advisors to run multi-year tax projections to determine whether to accelerate pretax contributions before the rule takes effect or embrace Roth sooner.

For 2025, contribution limits rise to $23,500 with an additional $7,500 catch-up for those 50+, and workers ages 60–63 can make a “super catch-up” of $11,250. 

Finsum: The key takeaway, according to advisors, is not to sit on the sidelines as the new rules approach, but instead actively plan for the transition.

A new survey from Edward Jones and Morning Consult finds that despite the tax benefits and flexibility of 529 education savings plans, more than half of Americans (52%) don’t know what they are. Only 14% of respondents currently use or plan to use a 529 plan, suggesting that lack of awareness is a major barrier to adoption. 

These plans allow tax-deferred investment growth and can be used not only for college but also for K-12 expenses, apprenticeships, and even student loan repayment, though most respondents were unaware of these options. Financial advisors at Edward Jones stressed the need for more education, noting that advisors can play a critical role in helping families align 529 strategies with broader financial goals. 

The findings come as higher education continues to demonstrate strong long-term value, with college graduates earning about 80% more than those with only a high school diploma, according to the TIAA Institute and Bureau of Labor data. 

Finsum: With more than half of U.S. jobs projected to require a degree by 2031, raising awareness of 529 plans could be vital in helping families prepare for future education costs.

A new Northwestern Mutual study shows that while Americans are experimenting with AI in daily life and at work, most remain hesitant to rely on it for something as personal as financial planning. 

More than half of respondents said they trust human advisors over AI for tasks like retirement planning and portfolio management, with only a small fraction willing to put that responsibility in the hands of algorithms. The survey underscores that money decisions are not purely analytical but tied to life goals, emotions, and family priorities—areas where people value empathy and nuance. 

At the same time, nearly half of Americans say they are comfortable with financial advisors using AI behind the scenes, particularly younger generations who see technology as a natural extension of expertise. Gen Z and millennials, in particular, were more open to advisors who integrate AI into their practice, compared to Gen X and baby boomers. 

Finsum: Americans want the best of both worlds: the efficiency and insights that AI can provide, paired with the judgment and human connection of a trusted financial advisor.

Financial advisors often focus on younger investors, but women over 60 are becoming a powerful and growing segment of primary asset holders. Many acquire wealth through widowhood, divorce, or lifelong independence, and they bring unique priorities to financial planning, including legacy, caregiving roles, and family impact. 

According to Jen Hollers of LPL Financial, these women value personalized, relationship-based advice and often seek to align their financial decisions with personal values rather than focusing only on performance. 

A challenge for advisors is that many older women are new to active wealth management, having been excluded from earlier financial conversations, and may feel overwhelmed when suddenly in charge. Hollers urges advisors to lead with listening, avoid jargon, and embrace a holistic model that blends estate planning, family dynamics, and legacy goals into a cohesive plan. 

Finsum: By fostering transparency, empathy, and family involvement, advisors can help ensure these clients’ intentions are honored while also building lasting relationships with the next generation.