Financial Planning Articles

Financial Planning Articles (December 7, 2018)

“Financial Planning Articles” is a collection of articles and research that I’ve been reading regarding financial planning.


What I’m Reading:

Personal/Career Development

Transitioning Part-Time Into Financial Planning As A Career Changer (Michael Kitces,

“I consequently often get this question, “Can I transition into being a financial advisor on a part-time basis as a career-changer?” For which I have to admit, I think the answer largely is no.”

How To Email Someone You Haven’t Talked To In Forever (Rebecca Zucker, Harvard Business Review)

“However, over the years, we often lose touch with people in our network as work, family, and other demands fill our limited time. As if reaching out to ask for help wasn’t hard enough, what do you do when the person whose help you need is someone you haven’t spoken to in over a decade?'”

Planning Profession

Competition For Talent And The Rising Shortage Of Next-Generation Financial Advisors (Michael Kitces,

“…the past two decades of a rising movement of independent advisors amongst both the independent broker-dealer and independent RIA channels has drastically reduced incentives for firms to develop their own talent. Creating a prospective next-generation talent shortage at the exact moment it’s needed most.”

NexGen Revisited (Rachel F. Moran, CFP®; Ian Harvey, CFP®; Autumn K. Campbell, CFP®; and Dana DeLance, Journal of Financial Planning)

In the past, we’ve chosen to focus on FPA members age 36 and under. This distinction specifically left out non-member students and late-stage career changers, focusing instead on young planners. We felt the age limit, while a good barometer of membership, was limiting and exclusionary. In revisiting who we serve, we’ve chosen to expand our focus.

New membership focus: We serve aspiring and early-career CFP® professionals.

With a refocused intention of inclusivity, we look forward to the next age of NexGen. For us, it is helpful to consider the new member definition as a career stage continuum; where “T” is one’s entry into the profession. We think of NexGen as aspiring and new-to-the-profession professionals. A rough measure might be: T minus four years (aspiring) to T plus eight years (early career stage). This is not meant to be restrictive in any way but rather, illustrative to depict the theory behind the change.


Bogle Sounds A Warning On Index Funds (John C. Bogle, The Wall Street Journal)

“Most observers expect that the share of corporate ownership by index funds will continue to grow over the next decade. It seems only a matter of time until index mutual funds cross the 50% mark. If that were to happen, the “Big Three” might own 30% or more of the U.S. stock market—effective control. I do not believe that such concentration would serve the national interest.”

John Bogle Is Wrong About Index Funds (Cullen Roche, Pragmatic Capitalism)

“Let’s think about this in an extreme sense. For instance, if Vanguard owned 100% of all stocks via index funds then they’d own all the voting rights in US companies.¹ That sounds scary, but is it? Or is it in-line with the ethos of Vanguard? After all, if Vanguard owned all those voting rights and opted not to vote (or just voted in-line with management as they normally do) then they’d be doing what any good indexer believes by ignoring the urge to try to influence and pick the winners in the public markets.”

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