Core Insights - Roth conversions can be beneficial even after the initiation of required minimum distributions (RMDs), as they help in tax reduction and provide greater control over future distributions [2][5] - An incremental approach to Roth conversions is generally recommended, but the decision should be based on account balance and other income considerations [2] RMDs Overview - Required Minimum Distributions (RMDs) must be taken starting at age 73 (or age 75 for those born in 1960 or later), calculated based on the account balance as of December 31 of the previous year [4] - RMDs are mandatory withdrawals that are taxable, aimed at preventing indefinite tax deferral [4] Roth Accounts and RMDs - Roth accounts are exempt from RMDs, and converting tax-deferred funds into a Roth account can lower future RMDs by decreasing the balance of the tax-deferred account [5] - It is important to note that the RMD itself cannot be converted into a Roth IRA; it must be withdrawn [7] Impact of Conversions on RMDs - Converting funds reduces the account balance, which in turn lowers the subsequent year's RMD. For example, converting $10,000 from a $100,000 balance results in a reduced balance of $85,000, leading to a smaller RMD and less taxable income in the following year [8]

Core Insights - The article discusses the financial struggles of a high-earning couple, Jeff and Susan, despite their substantial income, highlighting the impact of financial advisor fees on their wealth accumulation [5][9][10] - It emphasizes the importance of understanding fee structures in financial advising, particularly the drawbacks of percentage-based fees on assets under management (AUM) [2][6][20] Financial Advisor Fees - Traditional financial advisors typically charge fees ranging from 0.5% to 2% of AUM, which can lead to significant costs over time [6] - Jeff and Susan currently pay approximately $6,000 annually in fees, which could escalate to around $2,054 monthly in 35 years if their portfolio grows without further contributions [10] Psychological Factors - The article notes that psychological issues related to money can affect spending habits, regardless of income level, as illustrated by Jeff and Susan's financial behavior [3][4] Alternative Investment Strategies - The article suggests that Jeff and Susan could benefit from investing in low-cost ETFs or index funds to reduce fees while achieving similar returns [10] - It also introduces alternative investment options such as commercial real estate through First National Realty Partners (FNRP) and art investments via Masterworks, which provide opportunities for diversification and potential appreciation [12][14][16] Recommendations for Switching Advisors - The article advises clients to communicate their decision to switch financial advisors clearly, emphasizing the need to move away from percentage-based fees towards flat fee structures [19][20]

Core Insights - Tax planning is becoming a critical advisory service, with nearly 70% of high-net-worth clients prioritizing tax reduction, yet less than half of advisors currently offer this service [2][4] - The demand for integrated wealth management that includes tax strategy in every decision is increasing, shifting from a value-add to a necessity [5] - Advisors are facing evolving client inquiries regarding the impact of new tax laws on various financial aspects, indicating a need for more sophisticated tax planning [6] Industry Trends - Americans paid over $206 billion in capital gains taxes last year, highlighting the significant financial impact of tax planning [2] - A growing emphasis on transition management is noted, particularly when clients bring 401(k)s in-house, which can lead to substantial capital gains taxes if not managed properly [5] - Only 53% of advisors working with clients holding $5 million or more offer tax planning services, compared to just 38% for those with clients under $100,000 [7] Advisory Practices - Traditional tax planning methods are evolving from end-of-year tax-loss harvesting to more frequent management, such as monthly or weekly strategies [4] - Firms are hesitant to invest in the necessary expertise for effective tax planning, viewing it as a costly endeavor despite the potential for performance gains being eroded by taxes [4] - The need for advisors to adapt to the changing landscape of client expectations and regulatory impacts is emphasized, with a call for a more proactive approach to tax strategy [6]

Core Insights - A significant 37% of retirees have no retirement savings, with 40% forced into early retirement due to various factors [3] - The average American household retirement savings fall short of the recommended $1 million, with only 4.6% having over $1 million saved [4] - Most Americans believe they need approximately $1.26 million for financial security in retirement [4] Retirement Savings Landscape - The rising cost of living and inflation are major challenges for retirement savings, with many Americans struggling to save adequately [5] - A Northwestern Mutual study indicates that many Americans underestimate the amount needed for a comfortable retirement [4][7] - Experts suggest that even $2 million may not be sufficient for a comfortable retirement, emphasizing the need for personalized financial planning [7] Financial Advisory Services - Online platforms like Advisor.com and RothIRA.org connect individuals with vetted financial advisors to help develop retirement plans [2][12] - These platforms offer free consultations and personalized advice, making it easier for individuals to navigate retirement planning [2][13] Investment Strategies - Acorns provides a method for individuals to save and invest for retirement using spare change, promoting a simple and automated approach to saving [8] - Various IRA options, including traditional and Roth IRAs, offer different tax advantages depending on individual financial situations [11][12] - Real estate investments through platforms like Arrived and First National Realty Partners allow diversification of retirement portfolios without the burdens of traditional landlord responsibilities [16][18]

FORT LAUDERDALE, FL / ACCESS Newswire / October 1, 2025 / Greentree Financial Group, Inc. ("Greentree"), a financial advisory and consulting firm specializing in corporate governance, financial reporting, and public markets compliance, today announced that it has signed Luminar Media Group, Inc. (OTCID:LRGR), collectively known through its subsidiaries as Fortun, as a new client for advisory services. Under the agreement, Greentree will advise Luminar on its planned uplist to a major exchange, either Nasdaq ...

If independent advisors don’t necessarily have bigger fish to fry, they may still be catching a lot more. Focusing solely on high-net-worth clients and charging based on assets is one way to operate. The only problem is that most Americans aren’t millionaires. The pond is large, and many independent advisors are finding new areas to cast their lines. Between 2019 and 2025, XYPN firms saw client bases grow an average 25% per year, XYPN co-founders Michael Kitces and Alan Moore told Advisor Upside. By compa ...

In the response filed by the lead financial advisors of OpenArc, including senior managing partner Erik Bjerke, they argued that they followed procedure under the Protocol for Broker Recruiting , an agreement between securities firms that allows for advisors to take certain client contact information with them when they leave if both firms are part of the protocol. OpenArc, the advisors argue, had become part of the Broker Protocol when the client information was gathered.On Friday, the defendants filed sep ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Commonwealth Financial Network has seen more advisor attrition in the wake of LPL’s acquisition of the independent broker/dealer, which closed in early August. Kestra Financial, Cambridge Investment Research, Raymond James and Arkadios are the latest competitors to pick up Commonwealth advisors, according to regulatory filings as of Sept. 9. Kestra recently added eight advisor teams, including T ...

Core Insights - Understanding financial advisor compensation is crucial for consumers, with 36% unaware of how they pay for services and 20% believing services are free [1][2] Compensation Models - Advisor compensation is primarily categorized into commission-based and fee-based relationships [2] - Fee-based compensation can include various structures such as annual fees, monthly subscriptions, one-time consultations, or asset-based fees [3][4] Commissions - Commissions are one-time payments for selling specific financial products, with a decline from 23% of advisors in 2024 to an expected 16% in 2026 [5] - Pros include potentially lower costs for consumers needing specific product advice [6] - Cons involve conflicts of interest, where advisors may recommend products that yield higher commissions rather than optimal solutions [8] Assets Under Management (AUM) Fees - AUM fees are typically around 1% of assets managed, with 72% of advisors using this model in 2024, projected to rise to 78% in 2026 [9][10] - Pros include a common compensation structure, but cons include a focus on investment advice rather than comprehensive financial planning [11][12] Flat Dollar Fees - Flat fees provide predictability and align incentives between clients and advisors, but may be high for those with limited funds [13][15] - This model can exclude clients with fewer investable assets, as it may not be profitable for advisors to take them on [15] Subscription, Hourly, and Per-Engagement Fees - These models are straightforward and may be cost-effective for certain consumers, particularly those with less financial complexity [20] - However, accountability may be lower, and finding advisors who charge these fees can be challenging, with less than 1% of advisors using this model in 2024 [20]

Core Viewpoint - Raymond James has initiated legal action against Pietro Melia, alleging he solicited clients using confidential information from his late wife's company laptop, which he initially refused to return [1][7]. Group 1: Legal Proceedings - Raymond James filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against Pietro Melia for not returning a company laptop and soliciting clients for another firm [1]. - Melia has since returned the laptop and stated in an affidavit that he never accessed it, only turning it on to show that it contained privileged information [2]. - The court dismissed Raymond James' motion for expedited discovery, agreeing with Melia's affidavit that there was no evidence he accessed the laptop [4]. Group 2: Client Solicitation Allegations - The original complaint alleges that Melia used client contact information from the laptop to solicit clients for Wealthcare Management Services, a firm affiliated with LPL Financial [7]. - Raymond James expressed concerns that Melia accessed confidential information, noting that some individuals he solicited had no relationship with his late wife and were not clients of Raymond James [6]. Group 3: Defense Arguments - Melia's opposition to Raymond James' motion argues that the firm has no evidence he accessed the laptop and that he obtained contact information through personal connections [3]. - Melia requested the court to deny Raymond James' request for early discovery and to produce the results of a forensic analysis on the laptop [9].