New on the Pod
Michael Batnick spoke with Tobias Salinger, Chief Correspondent at Financial Planning, who has probably talked to more first year firm owners than anyone alive. He wrote a 30-part series on the whole thing, from launch to exit. He covered the stuff nobody tells you before you leave: what it costs on day one, how long until the business pays you anything, and all the compliance, tech, custodians stuff you need to know. If you’re thinking about going out on your own, or you already did and you’re wondering if your numbers are normal, watch this one. (Listen)
Good Stuff This Week
By now, you are familiar with the mechanics of tax-aware long-short strategies, of which AQR is a leading provider. As you can see from the graph above it has been a boon to AQR’s business. As these strategies gain traction, expect to see more calls for a regulatory response.
Gif by PBSSoCal on Giphy
I am seeing more coverage about aging parents and the challenges facing caregivers. In this excerpt, “80% of What You Need to Do,” Appel looks at the basics of helping parents as they age. Some of this is likely remedial for advisors, but could very well be a good starting point for clients entering this phase of life.
The Rest of the Story
Cerulli on the estimated 2-5% annual asset attrition that RIAs are seeing. (RIABiz)
What to do when clients won’t sell due to the endowment effect. (Kitces)
The great wealth transfer is going to include a lot of art that nobody wants. (Bloomberg)
Where people get financial advice - mostly friends and family. (Alpha Architect)
Moving back home after college is getting normalized. (New York Times)
A Q&A with Jack Raines, author of “Young Money." (Abnormal Returns)
How optimizing your financial life can make you miserable. (Jordan Grumet)
Your money fears are perfectly normal. (Ally Jane Ayers)