Displaying items by tag: advisors

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.

Raymond James Financial, long a leader in recruiting advisors from rival firms, is experiencing its strongest hiring momentum since the 2008–2009 financial crisis. With the stock market rebounding after tariff-related uncertainty earlier this year, the firm is benefiting from a robust recruiting pipeline and high advisor commitments. 

CEO Paul Shoukry noted that current activity levels rival the post-crisis surge, but with larger, more established teams now seeking the firm as a stable home. In the June quarter, Raymond James reported $11.7 billion in net new domestic assets, translating to a 3.4% annualized growth rate, with activity accelerating into the high single digits last month. 

Industry disruption, including LPL Financial’s acquisition of Commonwealth Financial Network, has created new recruiting opportunities that Raymond James is actively pursuing. 

Finsum: Advisors are looking to technical features firms can offer, so be sure to examine the whole package when picking a firm. 

Starting your own registered investment advisory (RIA) firm can be a rewarding move, especially amid a booming millennial client base and the $124 trillion wealth transfer underway. Advisors should begin by clarifying their personal and professional goals, then build a strong support team, including legal, compliance, tax, and marketing professionals, to ensure a smooth transition. 

It’s also essential to prioritize time wisely, balancing firm operations with client service and determining whether to outsource areas like investment management. Crafting an efficient tech stack is another foundational step, with core platforms for custody, CRM, portfolio management, and financial planning needed to streamline operations. 

Transitioning clients to the new firm must be handled carefully, ideally with legal guidance and a clear plan for targeting the ideal clientele. 

Finsum: With strategic planning and the right infrastructure, advisors can build scalable, client-centric RIAs ready to serve a changing generation of investors.