Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that a survey from Mergers and Acquisitions (M&A) consultancy DeVoe & Company finds that RIA leaders on the whole expect the already brisk pace of deal volume to increase in 2026, as (often private equity-backed) buyers find matches with sellers looking for external partners (who might be able to offer a premium valuation compared to internal successors). Notably, a strong majority of respondents who are looking to make an acquisition cited culture fit as the top characteristic they seek in a potential target (with talent coming in second), perhaps recognizing that successfully integrating an acquired firm is key to the success of a deal (e.g., in terms of client and employee retention). Nonetheless, internal successions do remain viable options for firms, according to the report, with the key to success being a willingness to start planning early to identify potential successors and to create a process and financing program that works for both parties.
Also in industry news this week:
- The Securities and Exchange Commission (SEC) has issued a risk alert warning about missteps the regulator has identified regarding its marketing rule, particularly when it comes to making clear disclosures surrounding testimonials, endorsements, and third-party ratings and rankings
- The SEC has signaled that it will allow a wide range of asset managers to offer dual-share-class funds, presenting potential fund-expense and tax-saving opportunities for advisors (and potentially raising questions for firms relying on mutual fund commission income)
From there, we have several articles on investment planning:
- Morningstar’s latest safe withdrawal rate figures ticked higher for those retiring in 2026, with spending flexibility allowing for even higher starting withdrawal rates
- While retirement income strategies that rely on spending flexibility are often attractive for clients, explaining potential spending reductions in terms of both the potential dollar amount and the duration of reduced portfolio withdrawals could give clients a better understanding of the tradeoffs involved and avoid negative surprises down the line
- Why the concept of sequence of returns isn’t just about protecting against market declines early in retirement, but can also be an opportunity to (significantly) boost retirement withdrawals if a positive return sequence occurs
We also have a number of articles on practice management:
- Why understanding a firm’s capacity could be a more effective forward-looking metric than other measures of productivity
- Given that a move ‘upmarket’ can introduce additional complexity and strain firm capacity, assessing firm infrastructure and fee models before making this move could lead to a more sustainable approach
- Why evaluating and potentially revising a firm’s internal processes could be more effective than defaulting to hiring a new employee when reaching capacity limitations
We wrap up with three final articles, all about cash flow management:
- The value of evaluating the time/money tradeoffs involved when considering whether to take advantage of ‘free’ offers
- How advisors can help clients recognize and address “lifestyle creep” to ensure their spending is aligned with their priorities (perhaps retire earlier than they might expect)
- The value of conducting a subscription ‘audit’ to save time and mental bandwidth in a world of proliferating services charging recurring fees
Enjoy the ‘light’ reading!
Source: Weekend Reading For Financial Planners (December 27–28)
