Special Needs Financial Planning

Here, we'll explore why serving family offices is a natural fit for many RIAs, discuss the considerations that need to be factored in when launching an MFO practice, and offer a roadmap for successfully building one.

Opening a 529 college savings account can be a smart move if you’d like to save for college on a tax-advantaged basis. One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.

A 529 college savings plan, also known as a qualified tuition plan (QTP), is a popular choice among parents and families looking to meet their children’s future educational expenses. Two of the 529 plan’s helpful features are tax-deferred growth of your contributions and later, tax-free withdrawals for eligible expenses.

This article will explore how to increase your AUM by capturing assets in trusts and DAFs, explain the difference between directed and traditional trustees, and discuss why designating a directed trustee and an advisor-friendly DAF is in the client’s best interest.

The looming wealth transfer from Baby Boomers and the Silent Generation to younger generations is set to reshape the financial landscape in unprecedented ways. Estimated at $84 trillion, this transition is a huge financial event.

Unbundling services and offering them à la carte could appeal to clients who want more control over their financial management. This approach allows clients to tailor the services they receive to their unique needs and preferences.

A surprising trend has emerged when it comes to discussing inheritance. While very and ultra-high-net-worth clients often engage in these conversations, they tend to occur far less frequently with other segments.

The term “Complexity Curve” refers to the growing intricacies that come with managing the wealth of high-net-worth individuals. As their assets grow, so do the complexities of their financial portfolios. This includes everything from business ownership and large qualified plans to complex estate planning issues.

Christine Benz is Morningstar’s director of personal finance and retirement planning, but she’s written a book that evokes Viktor Frankl as much as Bill Sharpe, aiming to go well beyond the mathematics of saving for, and living in, retirement.

Here’s a quote attributed to P. J. O’Rourke, an American author, journalist and political satirist: “There is a simple rule here, a rule of legislation, a rule of business, a rule of life: beyond a certain point, complexity is fraud.”

Many financial advisors exhibit a risk-averse attitude, leading to missed opportunities for growth and innovation.

You don’t need a fortune to channel your giving through a DAF. These funds are designed for everyday people who want to make charitable donations in a way that offers tax efficiency, flexibility, and choices.

AI and automation will revolutionize the financial advisory industry. These technologies enhance efficiency, improve client communication, and enable data-driven decision-making. By 2035, AI will be integral to most advisory firms.

For married couples, typically those who have a high net worth, a Spousal Limited Access Trust (SLAT) could be an efficient wealth-preserving strategy. These irrevocable trusts allow one spouse to transfer assets such as cash, marketable securities, real estate, and life insurance, to a trust that benefits the other spouse.

The longer I spent working at a big firm, the more I came to understand that the advice I could offer was determined by decisions at the top. My input as an advisor was limited, which didn’t sit well with me, so I looked for a position that would allow me to offer unbiased financial advice.

I have long admired Jonathan Clements. His columns in The Wall Street Journal introduced me to index-based investing. I was deeply saddened to read his column in HumbleDollar, dated June 15, 2024, that, at age 61, he has been diagnosed with lung cancer that has metastasized to his brain and “a few other spots.”

Why do people so consistently underestimate their lifespan? Their thinking is influenced by the money scripts, financial circumstances, stories, and emotions that drive a person’s cognitive biases, or mental shortcuts.

Of course, perfect or even near-perfect market forecasting is folly. But even if we can find a successful forecaster, odds are that they won’t add any value after taxes.

Here are the key things advisors don’t always know about exchange funds.

In an ever-evolving healthcare landscape, Medicare’s complexities present both a challenge and an opportunity for financial advisors. As clients approach retirement or face health-related decisions, they often turn to their trusted advisors for guidance on navigating the Medicare maze.

In this article, I provide a basic framework for understanding and developing a lifelong plan for a person with disabilities. I’ll introduce matters as they relate to establishing a well thought out and comprehensive plan that ties together life, public benefit, and resource planning as well as financial and legal planning.

When clients express a pragmatic approach to their terminal diagnosis, respect their perspective. Acknowledge their desire to avoid prolonged suffering and financial burden. Assure them you will work diligently to help achieve their goals and honor their wishes.

You might think that having an ADA-compliant website is only about adhering to legal requirements, but it can actually help your firm grow.

The generational wealth transfer is the mountain range on our horizon, likely dominating the landscape for much of our careers. Yet many firms struggle to move from acknowledgement to action.

Your clients deserve access to key players to take the field in dealing with each aspect of their financial lives, and so do you.

A few years ago, I was speaking to financial advisors about saving, spending, financial well-being, and life well-being.

When each of my children was born, I had their application for a 529 college fund filled out, mailed, and funded with the first $100 before they were released from the hospital.

Apple Inc. shares jumped the most in almost a year-and-a-half after the company posted stronger-than-expected sales last quarter and predicted a return to growth in the current period, sparking optimism that a slowdown is easing.

In the competitive landscape of the investment advisory industry, retaining top talent is essential for the long-term success and growth of investment advisory firms. To incentivize and reward key employees, investment advisors often turn to equity compensation tools.

What should financial advisors do to attract and retain high-net-worth and affluent investors? I have a one-word answer.

There are rules to follow if you set up a 529 college plan. If you don’t follow the rules, then the IRS will get involved, which is something you want to avoid.

In the competitive financial advisory landscape and ongoing quest for new clients, advisors often miss an obvious opportunity – the children and grandchildren lying within their existing clientele.

To keep your clients, do more than just your job – you need to keep them engaged. There’s a place for old-school engagement techniques like birthday cards and regular client meetings, but we can do better.

Advisors often get overexcited and overwhelm clients when discussing Roth conversions. Here’s how to dial back and effectively communicate this tax-saving strategy.

While getting your loans wiped out can seem like a lifesaver, it may come with some negative financial implications.

When a spouse dies, many women face severe financial hardship despite being part of a married couple for decades. This "widowhood penalty" results from men failing to ensure their wives are financially secure if tragedy strikes.

Dynasty 529 plans allow savvy families with significant means to potentially fund college costs forever.