Nerd’s Eye View

Weekend Reading for Financial Planners (Feb 16-17)

Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with the announcement that both Schwab and Fidelity are further expanding their list of commission-free (i.e., No Transaction Fee or NTF) ETFs, further expanding their offerings from both BlackRock and State Street, along with a number of secondary ETF providers…Read More…
Author: Michael Kitces
Posted: February 15, 2019, 7:36 pm

Kitces & Carl Ep 02: How To Price Your Financial Planning Services

For most of the financial advice industry’s history, figuring out compensation has been relatively straightforward, as the commission rate that a broker received was set by the manufacturer of the products that were sold. And even as the industry moved more towards the investment management (AUM) model, compensation rates became a little less rigid, theRead More…
Author: Michael Kitces
Posted: February 14, 2019, 3:16 pm

Qualifying A Rental Real Estate Enterprise As A “Business” For The 20% 199A QBI Pass-Through Deduction

In a classic case of “the gift that keeps on giving,” the new IRC Section 199A included in the sweeping changes to the Internal Revenue Code introduced in the Tax Cuts and Jobs Act enacted by Congress in December 2017 has the potential to help certain business owners significantly reduce their annual tax bill withRead More…
Author: Michael Kitces
Posted: February 13, 2019, 12:07 pm

#FASuccess Ep 111: Why The Right Advisory Fee To Charge Is The One That Not All Clients Say “Yes” To, With Jim Stackpool

Welcome back to the 110th episode of Financial Advisor Success Podcast! My guest on today’s podcast is Jim Stackpool. Jim is the founder of Certainty Advice Group, a practice management consulting firm for financial advisors based in Australia. What’s unique about Jim, though, is his particular focus on how to price and demonstrate the value propositionRead More…
Author: Michael Kitces
Posted: February 12, 2019, 12:03 pm

The New 1% Advisory Fee: 1% Of Income, Instead Of 1% Of Assets

The AUM model for financial advisors has experienced tremendous growth over the past 20 years, from the rise of the independent RIA to the broker-dealer shift to fee-based accounts. And despite the rise of critics questioning whether the AUM model is the most effective way to align what the client pays with the value beingRead More…
Author: Michael Kitces
Posted: February 11, 2019, 12:06 pm