Benefit from the present installment of “Weekend Studying For Monetary Planners” – this week’s version kicks off with the information that the Social Safety Administration introduced that the annual Price Of Residing Adjustment (COLA) for 2026 will likely be 2.8%, up from 2.5% in 2025 however beneath the ten-year common COLA of three.1%. Whereas this determine can assist money stream planning within the coming yr, what might be extra impactful for shoppers getting into or in retirement is the potential for a change in COLA calculation to be part of future laws designed to shore up the Social Safety system (earlier than the Social Safety belief fund is predicted to be exhausted within the early 2030s, at which level [absent policy changes] it might be capable of pay out roughly 80% of advantages). Notably such modifications may enhance or scale back future COLAs, as Congress may search decrease COLAs to cut back prices to the system (e.g., by adopting the “chained CPI” inflation measure or decreasing COLAs for higher-income recipients) or elevate them (e.g., by adopting the “CPI-E” determine, which is designed to trace the spending patterns of older People) as a ‘sweetener’ in a package deal of tax will increase and/or profit reductions.
Additionally in trade information this week:
- Cyber and privateness breaches stand out as issues for RIAs, in keeping with a current survey, with information accuracy and a scarcity of information coaching amongst particular areas of concern with regards to Synthetic Intelligence (AI).
- A current survey means that small enterprise house owners largely acknowledge the advantages of working with monetary advisors and gives insights into the planning areas that would show most useful to this group
From there, now we have a number of articles on insurance coverage planning:
- A guidelines for advisors supporting their shoppers in deciding on advantages throughout this yr’s open enrollment season
- Evaluating the relative upsides and drawbacks of Well being Financial savings Accounts (HSAs) and Versatile Financial savings Accounts (FSAs) and the way monetary advisors can create hard-dollar tax financial savings for shoppers by serving to them make the very best election for his or her distinctive wants
- A information to end-of-year Medicare planning alternatives through the annual open enrollment interval
We even have quite a few articles on behavioral finance:
- 4 methods shopper biases are costing them cash, from reluctance to pay taxes at the moment with regards to Roth conversions to hesitance to understand losses as a part of a tax-loss harvesting technique
- How one can assist prospects overcome the emotional hurdles concerned when deciding to modify advisors
- A current research means that shoppers would possibly not likely need ‘impartial’ recommendation and will search an advisor whose suggestions match their prior beliefs
We wrap up with three ultimate articles, all about discovering that means within the trendy age:
- At a time when consideration is extra helpful than ever, taking an intentional method to managing may result in stronger relationships and larger achievement
- How evaluating whether or not one’s targets are actually their very own (or are influenced by others) may result in a stronger work-life steadiness
- The downsides of residing a “guidelines existence” and the potential advantages of a extra contemplative method to work and life
Benefit from the ‘mild’ studying!