At both the federal and state levels, efforts are underway to give workers a retirement savings boost. In one of the latest moves, President Trump signed an executive order this spring designed to enhance the options for workers who don't have access to an employer-provided retirement plan. About 56 million workers fall into this group, or nearly half of U.S. private-sector workers ages 18 to 64, according to research from AARP.

The TrumpIRA.gov, set to launch by the beginning of 2027, will connect these workers, who often include independent contractors, small-business employees, part-time workers and self-employed individuals, to low-cost IRAs from private financial institutions. Workers will be able to compare IRAs based on cost, quality and investment options.

IRAs included on the platform will have to meet certain criteria. They can't require minimum contributions or balances, for one, and their overall net expense ratio can't exceed 0.15%. The menu of investments must include such options as target-date funds, which automatically alter their asset mix to become more conservative as the saver's retirement date approaches, and funds designed to protect principal on an ongoing basis.

The Saver’s Match

The White House initiative coincides with a government matching-contribution program that also starts next year, known as the Saver's Match, through which eligible workers can get a matching government contribution to their retirement accounts.

In 2027, you must have an annual income of less than $20,500, or $41,000 for those married filing jointly, to qualify for the maximum 50% match from the government. The match gradually phases out, and single filers who earn $35,500 or more, or joint filers who earn $71,000 or more, are ineligible for it. The income thresholds are indexed to inflation in future years. The government contribution is capped at $1,000, or $2,000 for married couples.

The Saver's Match will replace the Saver's Credit, a nonrefundable tax credit that taxpayers whose income doesn't exceed certain thresholds can take when they contribute to an IRA or workplace retirement plan. The maximum credit is $1,000, or $2,000 for joint filers.

Auto-IRAs

Some states are also taking measures to help workers who lack access to employer-sponsored retirement plans by providing automatic IRAs. Through these plans, certain employers that don't offer a retirement plan can enroll their employees to have money automatically deducted from their pay and deposited into an IRA, which is run by a state-approved financial services firm.

Employers can't contribute to auto-IRAs, but the accounts are eligible for the Saver's Match program. That could significantly increase participation in state auto-IRA programs, according to Pew Research Center, which surveyed people who don't have access to an employer-sponsored retirement plan.

At first, 84% of respondents said they were likely to participate in an auto-IRA program. That figure grew to 94% after they learned about the Saver's Match. And though 16% of respondents initially said they wouldn't likely use an auto-IRA, 52% of them expressed higher interest after they learned about the match.

States that offer Auto-IRAs

The following states have implemented or are developing automatic IRA programs, through which workers without access to an employer-sponsored retirement plan can have contributions automatically deducted from their pay and deposited into an IRA.

• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Illinois
• Maine
• Maryland
• Minnesota
• Nevada
• New Jersey
• New York
• Oregon
• Rhode Island
• Vermont
• Virginia
• Washington

This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to Kiplinger Personal Finance Magazine to help you make more money and keep more of the money you make.

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Every May, Small Business Month shines a spotlight on entrepreneurship. Just as the coverage slows down in June, so does visibility of small business ownership after launch.

The leap of faith, the ribbon cutting, the early momentum — these are all important moments. But they are only the beginning.

If a business' launch is the pilot, the real test is whether the business gets picked up for a second season. For most entrepreneurs, the real story is a tale of stabilization in the face of pressure — when and how they grow — and, ultimately, preparation for transition.

The data underscores just how complex that journey has become. Citizens' Q2 2026 Business Pulse survey showed that as global tensions increased, so did small business confidence.

Thirty-six percent of owners reported being extremely or very confident in the economy heading into the second quarter, up from 30% in Q1. The survey was fielded after the onset of war with Iran, making that rise in confidence reflective of a broader pattern: Small businesses are learning to operate and even plan for growth in uncertain conditions.

Resilience is the defining thread of today's small business. Small business ownership is not a moment; it is a lifecycle that changes with the seasons and is reborn with each generation.

At every stage, owners are making a different set of financial and personal decisions to position for what comes next.

What's possible

Every business begins with a bet on what's possible. Nearly half of small business owners (48%) expect revenue growth over the next three months, up from 43% the prior quarter, signaling an improvement in near-term expectations despite a volatile backdrop.

Business owners were largely confident that they could grow revenue and invest in their business; momentum at the outset is still driven by a belief in opportunity. That confidence trends upward quarter over quarter even in an uncertain environment.

But optimism at launch is only part of the equation. From day one, owners are navigating pricing decisions, cost pressures and access to working capital. Launch may be the moment that gets celebrated, but durability is what defines success.

That shift from starting to sustaining is where the real test begins. Broader economic conditions are felt most acutely during this stabilization stage.

Inflation remains the top concern for small business owners, cited by 43% of respondents, even after easing from 54% the prior quarter, while tariffs and global trade risks continue to layer additional uncertainty into decision-making.

Small business owners are managing pressure from both sides, as rising input costs compress margins while those same pressures reduce customers' ability to spend.

The result is a constant balancing act that defines what it takes to keep a business on solid footing.

For many businesses, stability is the foundation for the next stage. But growth today looks different than it did in the past.

Rather than scaling headcount or accelerating spending, many owners are taking a more measured approach, prioritizing efficiency and flexibility.

That shows up in steady hiring plans, stable investment levels and a focus on maintaining access to capital rather than expanding it aggressively.

In this environment, growth doesn't always mean getting bigger; it's about working smarter.

Succession planning

For all the focus on growth and resilience throughout a business' lifecycle, one stage of ownership remains underemphasized: Planning for the end.

Much of today's small business decision-making is anchored in the near term (working capital, immediate staffing needs, quarterly look-ahead). Owners are focused on a compressed planning horizon, which is still necessary, but comes at a cost.

When volatility dominates the day-to-day, long-term succession planning tends to slip. That makes sense in the moment. There is always another decision to make, another expense to manage, another short-term target to hit.

Over time, though, pushing that conversation off only raises the stakes. Succession is one of the most important decisions an owner will make, even if it rarely feels urgent.

Owners who plan for succession early tend to run differently. They develop employees and leaders who can step up and take on responsibility within the organization.

They put systems in place that do not depend on a single decision-maker. They think about how the business connects to their personal finances and what an eventual exit might look like.

Those choices shape how the business runs well before any transition is on the horizon. The lifecycle does not just lead to succession. It depends on preparing for it from the start.

The bottom line

As business confidence rises, small business owners are showing they can absorb shocks through unsteady times. There is a steady confidence in where their businesses are headed and what comes next.

Small businesses do not just open, they launch. That moment may get the spotlight, but success is not defined by the lift-off. It is shaped by everything that follows.

Owners must stabilize when conditions change, make disciplined decisions about growth and plan for the long term even when the near term demands their attention.

The strongest businesses are not built around a single moment. They are built over time, through the choices owners make across the full lifecycle — from launch to stability to growth and, ultimately, to what comes next.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

I've worked with enough successful business owners to know that almost every one has the same gap in their plans.

Take a scenario I see all the time: Dave built a widget company from nothing into a $30 million business. He's sharp, disciplined and completely focused on growth.

But when I ask him what his plan looks like after the company's sale, he stares at me like I've asked him to solve a riddle in an unknown language.

Dave isn't unusual. Most successful entrepreneurs pour every ounce of energy into building a business and almost none into planning for what happens when it turns into liquid wealth.

It's not carelessness. Building the company is the priority. If it doesn't succeed, there's nothing for which to plan.

The problem is that by the time the exit is real and there's a signed contract and a closing date, the biggest wealth-building opportunities have already passed. The cost of that timing gap can run well into the millions.

Three things business owners aren't considering

The same three blind spots come up again and again:

• The first is business structure. How the company and the owner's personal stake are organized for tax purposes. Whether you're a C corp, S corp, LLC or LLP affects not just annual income taxes but the tax treatment of any future sale. Get this wrong at formation, and you could be locked in for decades.
• The second is succession planning. For a business to command a strong valuation, it needs to be transferable. This means there is management in place, client relationships are institutional rather than personal, and operations can run without the founder. Buyers pay a premium for businesses they can take over immediately.
• The third is exit and estate planning. This one costs families the most money. A successful sale creates a massive tax event. Without years of advance planning, your options to reduce that burden shrink dramatically.

Why the math gets worse as the business grows

Valuation multiples expand as revenues grow. A company with $200,000 in EBITDA might sell for five times, or $1 million. Scale to $3 million in EBITDA and a 10-times multiple puts the value at $30 million. At $35 million in EBITDA, a 20-times multiple can push it to $700 million.

Industry and revenue quality directly impact these numbers, but the pattern holds: The bigger the exit, the bigger the tax event.

The federal estate tax rate above the exemption is 40%. The current lifetime exemption is $15 million per person ($30 million per couple), which is the most generous in U.S. history.

But Congress can change that number. A sale that pushes your estate above the exemption can trigger an enormous tax bill for your heirs if you haven't planned ahead.

What early planning looks like

If a business owner shows up with a signed purchase agreement and asks what can be done to reduce the tax hit, the honest answer is: Not much. The valuation is set. The structure is locked. The die has been cast, as we say.

The difference between the business owner who plans five years out and the one who plans five months out can easily be eight figures.

Let's revisit Dave's scenario. Five years before his planned exit, we started working on a strategy. Dave created an irrevocable trust for the benefit of his wife and children and transferred 50% of his company, valued at $15 million at the time, into that trust.

When the company sold for $60 million, the trust's half was worth $30 million, and that $30 million was outside Dave's taxable estate.

He paid long-term capital gains of 20% on the sale rather than ordinary income rates of 37%, and by moving assets out of his estate at a much lower valuation years earlier, he avoided what could have been $12 million in estate taxes on the growth alone. All told, early planning saved Dave's family north of $20 million.

Two types of trusts come up most often in these conversations:

• A spousal lifetime access trust (SLAT) is an irrevocable trust that names the spouse as beneficiary during their lifetime, then passes to children and grandchildren. It works well when the business owner might still need access to income or assets from the trust.
• An intentionally defective grantor trust (IDGT) skips the spousal access and goes directly to children and grandchildren.

Both of these options share the same critical advantage: The assets are valued when they go into the trust. For a growing business, that means transferring at a relatively low valuation years before the exit and letting all that appreciation happen outside the taxable estate.

Charitable strategies can strengthen the plan further. Donating appreciated stock to a donor-advised fund — or, for private company shares, to an organization that accepts them — delivers meaningful tax benefits over donating cash. These tools work best when built into the strategy early.

Four things to do now

If you own a business and think you might sell it someday (even if "someday" feels like a decade away) here's where to start.

1. Find the right wealth manager. Look for someone who works specifically with business owners and can help you build a long-term plan that connects your business goals to your personal financial picture. This isn't a one-meeting exercise, it's an ongoing relationship.

2. Assemble your full team and get them on the same page. Alongside your wealth adviser, you also need an attorney and an accountant, all working from the same playbook. These professionals shouldn't be operating in silos. The value comes from coordination. To ensure this, I encourage you to ask your team four questions:

• What is the plan?
• How are we going to get there?
• Who else needs to be involved?
• What are we not thinking about? This is the one most people forget.

3. Start three to five years before any potential sale. This is the window when the most powerful strategies, including trust planning, ownership restructuring, estate tax reduction, are still available to you. If you wait until a deal is on the table, most of those doors close.

4. Execute aggressively. An unexecuted plan is worthless. Once the strategy is in place, move on it. Every year of delay is a year that asset values grow inside your taxable estate instead of outside it.

The future will arrive faster than you think. Time is your single greatest ally in wealth planning but only if you use it.

The entrepreneurs who start early, build the right team and execute with urgency are the ones who keep the wealth they spent a career creating.

The ones who wait? They pay for it.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Growth can become a numbers game fast. More campaigns, more touches, more spend. But one adviser we work with sees it differently: Your firm can grow when you're known by your community rather than just your clients.

That's the tension many firms face. You want to scale, but you don't want to lose the human side of the business in the process. The answer for this firm was simple and disciplined. Community service was made part of the team and the job.

The result is worth your attention. It became a big part of the firm's culture, client experience and growth.

One simple rule

The adviser and their leadership set a clear expectation: Every employee would spend four hours each quarter volunteering.

That kind of rule can sound small on paper. In practice, it does something bigger. It tells your team more about what matters on the annual calendar.

We've had a similar volunteer structure at our company for more than a decade, and employees often say these days are among their favorite of the year.

For the adviser, the reasoning for the rule was also rooted in a real client need. Many retired clients, once they leave long careers, lose more than a paycheck. They can lose routine, identity and community. The firm wanted to help bridge that gap by creating opportunities for connection through local service.

That decision gave the team a stronger sense of purpose. It also gave clients a clearer picture of what the company stood for.

Here's the key turning point: This firm didn't treat community work as branding language. It was treated as behavior.

Building bridges

As a financial adviser, you're in a trust business. People don't always choose your firm only because of the process or product. They also choose you because they believe you understand their lives and will show up when it counts. Community involvement reinforces that in a very public, very human way.

At this firm, volunteer events created three kinds of value at once:

• Stronger team connection. Employees served and interacted with colleagues across departments
• Deeper client ties. Clients enjoyed shared experiences with the team outside the office
• Clearer market identity. The firm became known for doing what it said it valued

That last point matters. Plenty of firms talk about care, service and purpose. Fewer build systems that make those values visible every quarter. It's a lot like fitness. Good intentions don't change much. Consistency changes things.

Each year, clients of this firm help choose a "charity of the year," giving them an ongoing voice in the firm's outreach and creating real buy-in from the start.

Employees also volunteer during normal work hours, which removes friction and signals that the commitment is real.

The team then works with local nonprofits to create meaningful events. Before each event, the nonprofit contact comes to the office and presents to the team. They give employees context about the mission, the local chapter and how the organization serves the community.

Why does that step matter? Because people engage more deeply when they know the "why" behind the work. They aren't just filling boxes or walking a route. They understand the people and purpose behind the effort.

That's when service begins to move from task to mission.

Metrics with meaning

If you're serious about making community engagement part of your business, you need to measure what matters.

Currently, this firm tracks volunteer hours to confirm participation. That's a good start. But the team understands something important: Hours are the input, not the outcome.

The firm houses program data in a custom-built dashboard. The dashboard gives the team one place to track volunteer hours, promote upcoming service opportunities and reinforce core values.

It also includes practical resources such as team spotlights, a quarterly newsletter, marketing themes and training documents.

That kind of central hub does two useful things.

First, it keeps the service visible. If your values live only in a presentation deck, they fade. If they live in the same place, your team checks for events, updates and resources as part of their daily work.

Second, it creates accountability. When outreach has a home inside your systems, it becomes easier to plan, measure and improve.

For advisers and their firms, this is the larger lesson: Culture scales better when you give it structure. If you want your team to act on a value, put it somewhere they can see, use and track.

Five steps to build a community outreach program

If you want to create something similar in your own firm, start here:

1. Define your values. If your team can't explain why your firm serves, the program will feel shallow. Start with a clear set of core values and make sure your outreach reflects them.

2. Invite client input. Ask clients which causes matter to them. This makes the program more personal and helps your outreach reflect the community you already serve.

3. Set a realistic commitment. Four hours each quarter worked for this firm because it was specific and manageable. Choose a standard your team can meet without turning it into a burden.

4. Partner locally. Look for organizations in your area that align with your firm's values and your clients' interests. Over the years, our company has partnered with dozens of local groups of many sizes, and we're always finding new ways to connect and create impact.

5. Track your impact. Start with hours if that's the easiest place to begin. But don't stop there. Over time, measure participation, client engagement, team sentiment and referral activity.

Showing up is the strategy

Advisory firms often seek growth through new tools, campaigns and channels. Those can help. But this one example is a reminder that growth also comes from being known, trusted and present in the places that matter to your clients and your team.

When your firm shows up consistently, people notice. They remember. They talk. That's not a shortcut. It's a principle you can build on.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

A young investor today wakes up to a TikTok video on private credit, asks a generative AI tool to draft a retirement plan over breakfast, scrolls through podcasts comparing crypto custodians on the commute and fields a robo-adviser's portfolio recommendation before lunch.

Information about money has never been cheaper to produce, easier to access or harder to evaluate. However, despite the ubiquity of investment information, human advisers remain the single most trusted source of guidance for young investors today.

The role of traditional investment advice in an age of digital communication is a central tension in the new Next-Gen Investors report from CFA Institute, which draws from a survey of more than 2,400 mass-affluent and high-net-worth investors in six major wealth markets around the world.

Instead of reading this as nostalgia for a fading model, consider how trust works in a saturated information environment. When advice is everywhere, the question is no longer who has the answer, but who can be trusted to guide choices among many possible answers.

Younger clients are looking for a curator and collaborator, and the advisers who recognize that will own the next generation of relationships.

How advisers can stay relevant

What makes young investors different is how they verify trust. Older investors tended to define trustworthiness primarily through the relationship itself, with years of personal history, in-person meetings, and continuity across family generations. Gen Z and Millennial investors still want that personability, but they expect it alongside measurable, professional indicators.

Our research shows young investors place greater weight on professional credentials, transparency around conflicts of interest, data security and verifiable performance against benchmarks.

These markers are particularly valuable in a world ripe with mass-produced AI advice. Professional credentials, for example, are one of the few public proofs that a person, not a machine, has demonstrated domain knowledge and expertise.

This measurable trust is what advisers can lean into to stay relevant. In our survey, approximately one third of Gen Z and Millennials already use generative AI to learn about investing. Generative tools will keep getting better at producing fluent-sounding advice, but fluency is not judgment.

Cut through the hype

Seasoned advisers bring years of seeing market cycles, regulatory changes, behavioral patterns and the outcomes of decisions that looked obvious at the time. That experience is exactly what cuts through hype. An AI tool may produce responses that sound confident, but it cannot replace competence.

For advisers, this reframes the scope of their work. Professionals are no longer the primary gatekeeper for investing. Clients now have access to an abundance of information. Instead, the job is to serve as a curator, validator and translator of an overwhelming digital landscape.

In some ways, that is a more demanding role, yet a more durable one. It means being fluent in the latest products your clients are reading about, including the ones you would not personally recommend, so you can have an informed conversation rather than a defensive one, and being ready to interpret a viral video or an output a client copied out of a chatbot.

Younger clients are not going to stop consuming content, but they want an expert whose true value lies in human judgment.

Communicating that value is now part of the job. Younger clients will not assume seasoned judgment is in the room but will look for evidence of it.

Treat credentials, professional experience and past performance as strategic assets that are clearly communicated to current and future clients.

Document conflict-of-interest policies in plain language and make them client-readable.

Show the work behind a recommendation, including supporting evidence, not just the conclusion.

At the same time, AI can be a useful tool to communicate the value proposition of adviser judgement. Used well, it removes the friction that prevents advisers from being successful curators and collaborators.

AI can help with drafting first-pass communications, summarizing trends, preparing for meetings and scaling personalized check-ins.

Nearly 70% of Gen Z and Millennial investors in our study who use a paid financial professional interact with their adviser at least monthly. That cadence is difficult to sustain without technology, but underlying those interactions is the adviser's expertise and judgment orchestrating those communications.

Voice of reason

But the deeper reason younger clients want a human adviser is that the world has become a noisy place, and navigating the signals and products can be overwhelming and lead to rash decision-making.

Over half of Gen Z and Millennial investors in our research have already made at least one investment driven purely by fear of missing out (FOMO), most often in cryptocurrency.

As markets continue to show volatility, and as new investment opportunities emerge, the adviser's role is to be the person on the other end of the line when the next market dip arrives, the next can't-miss asset surfaces, or the noise of information gets too loud.

The point is not to chase every trend or reflexively dismiss new products or opportunities, but to be a voice of reason and stability. A credentialed, experienced professional who can keep clients aligned to their long-term goals and strategies; steadfastness becomes even more valuable in a noisy environment.

The advisers and firms who successfully adapt to the next generation will not approach AI as a threat, nor as a replacement for the adviser-client relationship.

They will be the ones who use technology to amplify their reach, and focus on their human qualities of judgment, accountability, ethical stewardship and demonstrated experience, which no algorithm can fully capture.

Genevieve Hayman, PhD, and Ryan Munson are co-authors of the CFA Institute Research and Policy Center report Next-Gen Investors: A Guide for Wealth Managers and Financial Advisers.

Genevieve Hayman is a senior manager of macrosystems and foresight at CFA Institute. Her research focuses on pensions and retirement security, complex systems, cognitive science and the long-term forces shaping global finance. In her role, she develops structured, long-horizon scenario frameworks that examine how technological, economic and regulatory shifts may reshape financial markets, institutional behavior and professional norms. She also contributes to early-warning frameworks and cross-pillar integration across CFA Institute's research agenda.

Ryan Munson is a research manager at CFA Institute. His research focuses on pensions and the future of finance, exploring how extra-financial factors impact the investment industry and investment professionals. Ryan serves on the advisory board for the Mercer CFA Institute Global Pension Index. He is the author of several CFA Institute publications, including the Future State of the Investment Industry, the Future of Work in Investment Management series and the CFA Institute Investor Trust series.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Research shows that most high-net-worth (HNW) clients are already charitable. They donate to causes they care about, support organizations in their communities and often want philanthropy to play a meaningful role in their legacy.

Yet many lack a cohesive giving strategy that ties charitable giving to clearly defined objectives and integrates within their broader financial and estate plans. Bridging the gap between intention and strategy is where advisers can provide real, differentiated value.

Recent data highlights how much HNW clients really value these discussions. According to the 2026 TPI Study of The Philanthropic Conversation, 88% of HNW clients consider it important to discuss philanthropy with their advisers, and 80% believe advisers have a professional or ethical responsibility to raise the subject.

Advisers have largely caught up to that expectation: 96% now view it as their obligation, a significant increase from 62% in 2018. The alignment is there, but the next step is ensuring these discussions move from one-off, year-end conversations into a consistent bullet point on the planning agenda.

1. Understand what motivates clients to give

Before diving into giving vehicles and technical solutions, the first step in helping clients build a strategic giving plan is understanding why they are motivated to give in the first place.

Advisers often assume clients' philanthropy is driven primarily by tax considerations, but the data suggests clients are most motivated by purpose and impact rather than deductions.

The TPI study found a notable disconnect between adviser perceptions and client priorities. Advisers identified "being an inspiration to others" as the top motivation for charitable giving, while clients ranked "making an impact" highest.

Furthermore, 40% of advisers cited taxes as a key motivator, compared to only 21% of clients.

For advisers, philanthropy offers a unique opportunity to connect with clients on a deeper level beyond portfolio performance and investment returns.

Asking targeted questions around charitable goals often reveals what clients care about most, and uncovers personal aspirations, legacy goals and family dynamics that may not come up during traditional financial planning meetings.

When clients feel understood on that level, the adviser relationship becomes more meaningful and durable.

2. Match giving vehicles to goals

Once a client's motivations and priorities are clear, the next step is helping them select the charitable giving vehicles and strategies that best support their goals.

According to the TPI study, 34% of clients are interested in integrating charitable objectives into their broader wealth management plans, reflecting a growing desire for philanthropy to be intentional rather than reactive.

Different charitable vehicles serve different purposes, and the right approach depends on the client's goals, assets and desired level of involvement.

• Donor-advised funds (DAFs) suit clients who want flexibility, simplicity and an immediate tax deduction without the administrative obligations of a foundation.
• Private foundations make sense for clients seeking more control, a vehicle for multigenerational family engagement, and the ability to make grants, run programs or invest mission-aligned capital.
• Planned giving programs, including charitable trusts and bequests, work well for clients integrating philanthropy with estate and legacy planning.

It often makes sense for donors to use a combination of giving vehicles. Private foundations and DAFs are especially synergistic, providing more ways to give and maximizing financial outcomes.

Overall, moving from ad hoc donations to a more programmatic approach through structured vehicles makes it easier to incorporate philanthropy into a financial plan and enables steadier streams of funding for nonprofits.

3. Measure progress and impact

As philanthropy becomes more intentional, many donors want greater clarity on the impact of their charitable giving, but measuring that can be difficult.

According to the 2026 Foundation Source Donor Survey, 27% of donors identify impact measurement as a top challenge, while 33% say it is an area of strong interest.

Advisers can play an important role by helping clients define what success looks like from the outset. For some, success may mean donating a certain dollar amount annually or supporting a specific number of organizations.

For others, it may involve measurable outcomes tied to a specific cause, such as scholarships funded, families served or conservation goals achieved.

Strong relationships between donors and grantees can make a meaningful difference, too. Donors who engage regularly with the organizations they support often have a clearer view of how their grants are being deployed and the impact they have.

Encourage clients to maintain an ongoing dialogue with grantees — an open line of communication can foster a more collaborative environment and lead to more insight into results.

Just as importantly, charitable planning discussions should not happen only once a year. Embedding philanthropy into regular planning meetings allows advisers and clients to revisit goals throughout the year and better track progress.

Donors are becoming more deliberate about how they give and want it to feel purposeful, not piecemeal. Advisers have the opportunity to help clients structure their giving strategically to reflect personal values, involve the next generation, and sustain across market cycles and policy changes.

When you help a client turn charitable intentions into a structured giving strategy, you're not only serving their charitable mission, but also building the kind of relationship that lasts for generations.

The 2026 TPI Study of the Philanthropic Conversation was conducted between December 2025 to January 2026 among 300 professional advisors who advise high-net-worth (HNW) clients (those with $5 million or more in investable assets) and 103 HNW clients who participate in philanthropy. The study was co-sponsored by Foundation Source and DAFgiving360, with support from The Boston Foundation.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

It's not unusual to feel a flood of relief as soon as tax season subsides, especially if you're a business owner.

After weeks spent pulling documents, reviewing expenses, answering CPA questions and finding cash for a final payment, you'll probably feel like closing the folder immediately and not thinking about taxes for another year.

But that pause can be expensive.

Q2 is one of the few points in the year when the return is recent enough to teach you something, and the calendar still gives you time to align. The IRS expects taxes to be paid as income is earned, not just when a return is filed.

For many business owners, that means staying current through withholding or estimated payments.

For individuals, sole proprietors, partners and S corporation shareholders, it's when you generally need to make estimated payments if you expect to owe at least $1,000 at filing.

What often gets called tax planning is, in practice, more like tax reporting in advance. Now is the time to make sure you don't fall into that trap.

Model the tax impact before major decisions

Most large tax outcomes begin when a business owner hires, buys, sells, restructures, takes on a partner or changes how income flows through the company.

A decision can look profitable in the operating model and still create a tax position that weakens the economics.

For instance, a new senior hire may bring growth, but the full cost includes payroll taxes and mandated government benefits, which will definitely bring changes to cash flow.

Similarly, a major equipment purchase may qualify for depreciation benefits, so timing and income level matter.

Q2 gives owners time to run those numbers before the decision is locked. As a CPA, I'd recommend leveraging that time because fixing tax problems later can be slow and costly.

For context, during fiscal 2025, the IRS processed about 1.6 million business amended returns and took an average of more than 13 months to process them.

It's always best to involve a tax adviser before making any move. Ask your CPA to show the after-tax effect of the decision, or the estimated cash needed to support it, or anything that would affect the result, such as deadlines.

The goal is not to nitpick every small purchase or watch every action round the clock. It is to identify which decisions can materially change taxable income, deductions, credits, entity treatment or estimated payments before you commit.

Use last year's bill as a diagnostic for this year

A higher tax bill can feel like you're finally growing your business. And in some cases, it is. When revenue rises, the owner's income often rises with it, and so do taxes.

But that bigger payment is not always just a sign of success. It can point to a structure that no longer fits, or planning that may have started too late.

Q2 is the right time to review what drove those numbers while the return is still fresh.

• Look at the categories that changed most from the prior year
• Review whether revenue growth reduced deductions or moved income into a higher tax bracket
• Confirm whether personal and business expenses were clearly separated

Small-business tax surprises often stem from one or more of these.

The purpose of this review is to spot the opportunities you missed so you can course correct quickly and get ahead of any patterns that are likely to repeat this year.

• If revenue grew, is it likely to grow again, and what bracket will that put you in?
• If a deduction was missed, what needs to change in the books before December?
• Does your entity structure still serve you?

These are the questions you should be asking now.

For high-earning business owners, key opportunities may involve retirement plan design, cost segregation for real estate, R&D credits, Qualified Small Business Stock (QSBS) treatment, entity optimization or charitable giving with appreciated assets.

At Gelt, we can never emphasize enough that these strategies require proactive planning rather than a return-preparation mindset.

In a nutshell, check whether the bill increased because the business performed better, or because the tax plan failed to keep up with the business. Those are two very different problems.

Decide whether your CPA relationship has kept pace

Early-stage business owners often just need a CPA to file for them with accuracy and keep them compliant. But as income grows, that level of support may no longer be enough.

Compliance looks backward at what has already happened. Strategy looks forward at the decisions that can still be changed. If the only conversations with your CPA are happening in March or April, the relationship may be limited to just reporting the year instead of shaping it.

Sadly, that gap is common. In fact, reports say 90% of business clients are interested in advisory or consulting services from their accountant, but more than half say they are not fully using their adviser's full range of services.

This is another reason why Q2 is a practical time to assess the relationship, because both sides have more room to think. Ask whether your CPA specializes in clients with your income type, entity structure, industry and long-term goals.

Think about whether they meet with you quarterly, explain your effective tax rate, flag deadlines in advance and help model major financial events before they happen.

Ensure their scope of work is clear, so you know what is included and what is not.

Make Q2 the start of next tax season

The tax return you filed in April should become the first milestone for the rest of the year. If the bill was higher than expected, Q2 is the time to understand what happened and what the rest of your year might look like.

Look at the income that changed, the deductions that were missed, the estimated payments that fell short, and the business decisions that created tax consequences no one modeled in advance. That review gives you a wider view for the next eight months.

From there, update your income projection, adjust estimated payments before the next deadline, review whether your entity structure still fits your revenue and bring your CPA into decisions such as hiring, equipment purchases, real estate transactions, partner changes or compensation planning before they are finalized.

Waiting until Q4 leaves less room to act. Q2 gives business owners the time to correct what caused last year's bill and make tax planning part of the decisions that shape this year's growth.

Related Content

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• 12 Tax Strategies Every Self-Employed Worker Needs in 2026
• Home Office Tax Deduction: Work From Home Write-Offs to Know
• The Tax Trap Snares Many Business Owners: A Financial Pro's Guide to 11 Strategies You May Be Missing

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

I recently listed my home for sale. Like most people, I spent the weeks leading up to the first showing making it look its best.

I repainted walls, handled the landscaping and finally addressed the small repairs and deferred maintenance I had lived with, and ignored, for years.

Ironically, the house looked better for the strangers walking through it than it did for the family that had called it home.

It struck me how often financial advisers do the same thing with their own firms.

We spend our careers helping clients optimize balance sheets, manage complex risks and think strategically about wealth.

Yet, when it comes to our own businesses, often among the largest personal assets on our balance sheets, many of us delay meaningful investment until a triggering event forces the conversation.

Whether it is retirement, burnout, succession planning or an unexpected shift in the market, many advisory firm owners start improving the business only when a potential buyer or partner comes knocking.

By then, they are not building. They are reacting. They are trying to capture value that should have been compounding for years.

The $100 million to $1 billion reckoning

The wealth management industry is entering a critical period, especially for firms with $100 million to $1 billion in assets under management (AUM). In this range, many firms encounter a ceiling of complexity.

The reliance on the founder's calendar, combined with the manual workarounds that helped a firm reach $250 million, often becomes the very thing that prevents it from reaching $1 billion.

A similar trend is playing out in the legal industry. For years, smaller law firms felt they could not compete with the resources of Big Law.

More recently, however, many have leaned into technology-enabled operating models, strategic partnerships and outsourced infrastructure to level the playing field.

The lesson for wealth management is clear: Scale is no longer just about headcount. It is about whether the firm's technology, workflows and operating infrastructure can act as a force multiplier.

The small-firm edge: Agility as a competitive advantage

There is a powerful advantage hidden in the $100 million to $1 billion space: The ability to pivot quickly.

Large, multi-billion-dollar firms often move slowly because of bureaucracy, legacy systems and multiple layers of approval. Smaller, nimbler firms can often pilot new technology, refine client experiences and adjust operating models in weeks, while larger competitors may take far longer to reach consensus.

By leaning into institutional-grade tools now, smaller firms do not merely catch up to larger competitors. They can out-innovate them by being more responsive, more focused and more willing to evolve.

The valuation gap between a founder-centric lifestyle practice and a scalable enterprise is widening. Strategic buyers and private capital are not simply looking for a list of client names. They are looking for a repeatable, durable business development process. They want a firm that can thrive even if the founder is not personally driving every interaction.

Advisers routinely counsel clients against concentration risk, yet many remain personally over-concentrated in a single fragile asset: A firm that cannot function without their constant, direct involvement.

Institutionalizing excellence

At Aspire, we believe high-level financial management should not be reserved only for the ultra-wealthy. Our mission is to help clients professionalize their financial lives by bringing them the best practices, sophisticated reporting and rigorous oversight often associated with institutional family offices.

To provide that caliber of service, we must first apply those same institutional standards to our own firms.

Michael Kitces and other industry observers have written extensively about the risks of founder dependency as advisory firms scale. The core idea is simple: A firm cannot scale sustainably if its growth, client experience and operating discipline depend entirely on the founder's personal heroics.

Based on the workflows that drive enterprise value, there are three areas where firms can build immediate equity by moving from a lifestyle mindset to an institutional one.

Standardize workflows. Client meetings may follow a general cadence, but there is wide variation across firms in the time required to prepare for meetings and complete follow-up afterward.

Acquirers want to see CRM-driven workflows where agendas, notes, tasks and next steps are documented and repeatable.

If the client experience is a process rather than a set of to-dos stored in the founder's head, risk goes down and valuation goes up.

Centralize planning. Advisers often get bogged down in the mechanics of financial planning: Tweaking projections, generating reports and managing the operational details behind each plan.

Transitioning to a dedicated core team of part-time or full-time specialists helps ensure that the firm's planning engine runs consistently across all clients. It demonstrates that the firm has a methodology, not just a lead adviser's intuition.

Integrate technology. Manual processes are a silent killer of firm value. If teams are still reconciling data between the CRM, custodian, client portal and financial planning platforms, they are increasing the margin for error.

Strategic buyers look for clean, automated data flows. This is not just a technology upgrade. It is a risk mitigation strategy.

Scale, partnership and controlling our destiny

Unlike a home sale, a firm does not always have to be an all-or-nothing transaction.

There is a common misconception that advisory firm owners have only two choices: Remain completely independent until they no longer work or sell the firm and walk away. The most strategic options often exist in the middle.

By investing in infrastructure now, firm owners can create the possibility of partial liquidity. That may allow them to take some capital off the table and diversify their personal net worth while still maintaining meaningful ownership, leadership and client relationships.

Clients today are looking for more than portfolio returns. They are looking for continuity. They want to know whether the firm serving them today will also be there for their children and grandchildren.

The best time to improve the curb appeal of our firms is long before the open house. If we invest in the foundation today, we are not just preparing for an eventual sale. We are building a much better business to own.

My interest in this topic stems from a desire to partner with like-minded firms that share this vision. I believe firms in the $100 million to $1 billion space are often better off operating together than apart.

Together, we can scale faster, share the burden of operational complexity, and capture value that is often unavailable to a solo practice.

Related Content

• Are You Ready to Go Upmarket? What Advisers Need to Know
• Build Relationships, Build Your Brand, Build Your Business
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• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• How to Position Your Business for a Lucrative Exit Despite Private Equity's Slowdown

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

It's no secret that many RIAs are looking to modernize their technology stacks and create a more personalized, digital experience for clients.

Based on my experience, the most successful RIAs that are achieving top-decile organic growth and strong client outcomes tend to share one strategy in common: They are segmenting their business.

Segmentation is the process of dividing an adviser's client base into distinct groups based on needs, behaviors, profitability, growth potential, complexity and other characteristics.

With the right structure, advisers can match different clients with the service models, pricing, custodial setups and technology solutions that best suit them.

The result is a streamlined practice structure where larger client relationships still receive the depth of service they need, while smaller accounts can be serviced effectively without draining adviser capacity.

However, when I mention "client segmentation" to RIAs looking to scale, the initial reaction is often skeptical. Many associate it with added overhead, operational risk and more complex workflows.

Without the right preparation, partners and technology, client segmentation can indeed slow advisers down and cause the very friction it is designed to remove.

The good news is that RIAs can take clear, proactive steps before committing to segmentation to ensure it aligns with their broader strategy and timing. With the right partner, advisers can:

Determine if segmentation is right for the practice

Based on their current assets under management (AUM), as well as their appetite for risk, ability to weather potential temporary disruption and goals for growth, advisers can figure out whether their practices are at the right point in their development to implement client segmentation.

This strategy tends to work well for firms that have accumulated more than $250 million in AUM and are outgrowing their initial niche specialization. There will also be some degree of short-term disruption for any firm that adopts this strategy, since segmentation can sometimes involve parting ways with clients who no longer fit the practice.

Run profitability analysis

Using visualization tools, advisers can model the financial impact of client segmentation on their existing books, as well as calculate the cost-to-serve ratio across all segments.

These tools can also calculate what minimum fees would be necessary, following the implementation of client segmentation, to ensure their practices can remain independent and profitable.

Design tier structures

Advisers can work with partners to figure out how many segments need to be created based on their current books and then which service levels and other factors should be assigned to each segment. They can also plan for how to balance meaningful upside with any potential disruption.

Build operational infrastructure

To ensure their technology can support client segmentation, RIAs can prepare their billing solutions for tiered pricing, utilize analytics tools to make lower-tier segments more profitable and configure their CRM systems to track different segments.

Roll out sequentially and manage client communication

When solutions enabling client segmentation have been onboarded, RIAs can roll out the new service models beginning with the top strategic accounts and then continue down the line to lower-margin and at-risk clients.

Advisers and their partners should also deliver personalized messages about any changes — from fee increases to new adviser assignments — to individual clients in a timely manner.

Track progress

To monitor if client segmentation is helping meet desired goals, RIA firms can establish baseline metrics for what success should look like at 90 days, six months and 12 months after implementation.

Outstanding service works best with guardrails. When RIAs attempt to serve all clients the same way, they often end up serving no one exceptionally.

A one-size-fits-all approach doesn't make sense if you're working with a $500,000 Millennial couple and a $20 million executive nearing retirement who have different strategies, financial planning needs and specializations.

Client segmentation gives RIAs the freedom to define investment strategy, adviser involvement, planning depth, pricing and more for every client — and excel at serving them accordingly.

Over time, this strategy can deliver positive outcomes, high-quality engagement and a competitive advantage.

With the right team and technology in place to mitigate friction, RIAs can unlock the full value of client segmentation and serve the next generation of clients while delivering sustainable growth for years to come.

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• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• To Win HNW Clients, Consider an Unbundled Advisory Model That Delivers Objective Oversight
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Pursuing a Golden Visa is one way to secure a different lifestyle — now or later.

It provides a vehicle for visa-free travel and the opportunity to take up residency in another country, which can be extremely attractive in geopolitically uncertain times.

Many people are attracted to the idea of moving to a country where the weather's better, the pace of life is slower, and healthcare might be cheaper and easier to access.

For high-net-worth individuals (HNWIs), there's also the lure of lower taxes to help protect investments.

An effective hedge against instability

One compelling reason for seeking a Golden Visa is its effectiveness as an emergency backup plan. When viewed from a risk-management perspective, a Golden Visa can be an effective hedge against a range of potentially damaging issues that could cause significant business disruption, as well as impacting individual freedoms, wealth and personal security.

Political instability generates risk and creates volatility in what were formally relatively stable marketplaces and can seriously undermine the financial plans of even the smartest investors.

Changes in government might lead to sudden tax or regulatory adjustments that could devalue long-term investments. The introduction of capital control policies, including tariffs and restrictions on transferring money in and out of the domestic economy, can constrain liquidity, significantly limit investment opportunities and increase the cost of doing international business.

The key to an effective escape route

There's a personal risk too, if rising civil unrest threatens societal and personal stability. In such an environment, it might be prudent to have a plan B that can quickly be put into action if leaving the country becomes imperative.

While this might sound like a doomsday scenario, if it happens, a Golden Visa can provide the key to an effective escape route.

Recent events in the Middle East are a prime example of how global events can affect economies and individuals, with the ongoing conflict causing high inflation, stock market instability and eroding investment value at pace.

Individuals, their families and their assets have the option to legally reside in another country if they possess a Golden Visa. Although they're not usually obliged to relocate once a visa has been secured, having one ensures they have options should the situation take a turn for the worse in their home country.

It provides a second base for individuals and their families to relocate quickly if needed, divert investments if economic uncertainty makes things difficult at home and continue to operate a business internationally if required.

Protection against circumstances beyond your control

A Golden Visa is about enhancing financial resilience and strengthening personal sovereignty.

As a citizen of a single country, individuals are subject to a single set of laws, one passport, one tax authority and the potentially negative impacts of an evolving political climate.

Dual citizenship enables individuals to protect themselves against circumstances beyond their control and gain the peace of mind that if things decline rapidly in their home country, they have a way out.

Of course, it's impossible to get house insurance if the house is already on fire. Those seeking a Golden Visa are advised to start planning early. Waiting for a crisis to hit is inadvisable. It's much easier and cheaper to investigate a Golden Visa while things are relatively stable.

Asset protection in an uncertain world

A Golden Visa doesn't immediately confer citizenship on the holder, but it will usually offer a path to citizenship once any requirements have been met (depending on the country offering it).

Applicants might be required to spend time in their designated country — with requirements typically ranging from one week to six months per year for a predetermined length of time, depending on the location — and will have to demonstrate ties with the host country, either through inward investment, such as real estate, or through passing a basic language test.

It's important to acknowledge that Golden Visa holders aren't abandoning their country of birth in search of a better lifestyle. They're simply seeking to protect their assets, families and businesses in an ever changing, increasingly uncertain world — or, to put it another way, they're managing risk more effectively.

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• U.S. Business Leaders are Quietly Plotting Their Escape to Europe: How Will They Get There?

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many closely held family-owned businesses don't have well-architected succession plans.

Children often choose to go in different directions, building lives outside the family business, and unaddressed succession issues can create uncertainty and family stress.

Even when there are apparent successors — such as adult children who grew up in the business — there's still a distinct need for open communication and careful planning.

Take the example of Tom, a septuagenarian sole owner and CEO of a sales representation and distribution business, who learned the business at the foot of his father, the founder and original owner.

During his tenure, Tom landed exclusive relationships with several powerful national brands and grew the business into a locally well-known brand with more than $20 million in annual sales, one year reaching more than $5 million in EBITDA.

Tom's sons each showed interest in working alongside him. They nurtured and developed sales contacts, met with the company's accountant, hired and fired employees — they learned the ropes. Tom's daughter expressed no interest in the business; she became a successful professional and moved across the country.

Tom expected one of his sons would eventually emerge as the clear leader, fall away or become interested in something different. Tom also thought that his daughter, busy with her own successful professional practice, would have no real interest in any of it.

He decided he'd figure out the business's succession "when the time comes."

In retrospect, what eventually played out was foreseeable, avoidable and not at all uncommon.

What wasn't going to work

The brothers devolved into rivals. Each son had important valuable skills that could help the business, but dividing leadership in a shared power arrangement wasn't going to work.

Then, as it turned out, Tom's daughter and her children had quite a significant interest in the business. While she never had any interest in running the business, it became clear that Tom's daughter had always carried an interest in what she perceived as "her share" of the finances. Her perception of fair didn't necessarily align with anyone else's.

The results? First, customers heard of possible uncertainty in the ranks. Management saw there was no clear designated leader. Tom's daughter? Things devolved to the point where she threatened to sue unless "her rightful share" of the business was clearly delineated.

This was not only a terrible mess for this family's relationships, but also a very challenging set of facts for the business and a clear threat to its continued success.

With closely held businesses, especially those that are family owned, it's rare that the primary owners haven't at least thought about succession.

But knowing the possibilities for difficult conversations, trying to avoid "playing favorites" and having a parental desire to see healthy relationships among their children all encourage procrastination.

Dodging issues postpones the inevitable

Unfortunately, avoiding the issues doesn't make them disappear; it just postpones facing them — and frequently, there is a very real cost.

Not only do unresolved issues tend to worsen and positions tend to entrench during periods of silence and no communication, but the business at the heart of these situations incurs substantial additional risk from the banked uncertainty.

There are several obvious problems:

• When family is involved, whatever happened at dinner last Christmas inevitably gets inseparably intertwined with why someone made a particular strategic business decision for the company.
• The company — which technically only speaks through its officers, directors and owners — suffers from the uncertainty and the potential picking of sides among key stakeholders.
• Instead of uniting a family around all the work that was done and the successes created, uncertainty in succession planning fosters divisiveness through infighting over control and economics, and legacy suffers.

Avoiding procrastination

The most successful family-owned/operated businesses share one common characteristic: Its key stakeholders communicate openly, honestly and often about the business.

These families openly acknowledge that they might have differing — often competing — interests when it comes to the business, and doing so can successfully compartmentalize these business issues. A few tactics can help.

Leverage the advisers. A trusted lawyer and a trusted accountant can carefully explain to all involved that they're working for the business. When representing the company — not any particular individual's — interests, they can be present to put the business first.

Having these advisers present and speaking for the business is a great way to encourage individuals to openly voice their own personal interests, knowing that it's the advisers' job to represent the company.

Focus on distinct business roles. Trying to avoid amorphous, subjective perceptions such as "That's not fair!" and instead relying on objective qualifications, skills and the business's needs can be very helpful.

Considering what characteristics the CEO should best display vs perceptions of "what's fair" to each of the owner's children can help with this. The subjective outcome of a scenario will always be present, the soft issues will always need to be addressed, but that's much easier to do after conducting a clear, logical, defensible analysis on the objective issues.

Once parties agree on the characteristics defining the best qualified candidate, they can then address the implications. "What's fair" has a place in the overall discussion about the business, but it should not be the guiding principle.

Write the plan and share it. Writing down conclusions and consensus — even directional consensus if the group hasn't finalized every specific detail — can be effective for some. The act of meeting with advisers and writing down outcomes goes miles toward the perception of a shared, well-vetted solution.

An experienced business lawyer partnering with an experienced accountant makes a perfect team to help closely held businesses navigate and address succession issues.

While every situation is unique and challenging — especially when family is involved — there's a common thread among successful ones: open, early communication.

Assembling professionals, scheduling a meeting (or a series of them), encouraging open and frank conversation, and documenting the progress and outcomes can help families work through succession planning effectively, considering what is best for both family and business.

Don't wait to figure it out later.

Related Content

• I Found Out What It Takes for a Family Business to Thrive
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Golf is a great way to spend four hours, but it's a poor answer to the question, "What will my life be about?"

Ask almost any business owner in the middle of an exit what they are going to do "after," and a familiar list appears: More time on the golf course, maybe some travel, a bit of consulting on the side. After years of building a company, it sounds nice — and it's deserved.

Yet for many former owners, that loose collection of hobbies stops feeling like freedom within months after leaving the business. What looked like a dream from the boardroom suddenly feels like a drag.

This is the "highlight reel" problem, in which many owners fail to plan the actual weekly reality of their post-exit life. They picture golfing, pickleball, woodworking and working on classic cars — but not the third quiet Tuesday in a row without any big decisions to make.

Hobbies are narrow by design. They lack built-in structure across all seven days of the week. Nor can they replace the structure, identity and sense of purpose that came from running a business.

Loss of identity catches business owners off guard

In a single day, business owners may solve problems, lead people, make strategic decisions, negotiate deals and shape the future of the organization they built. Over time, that daily web of responsibility becomes an identity.

So, when owners exit without a role to grow into, that identity suddenly disappears. Owners who have spent decades building and running a business can find themselves with all the time in the world to do what they thought they wanted to do, but without the structure that once filled their days.

They sense emotional weight and begin to process emotional fallout — while also navigating complex legal, tax and family decisions. They may even stall, renegotiate or sabotage a solid deal because, at a gut level, they are not ready to let go.

Personal planning to complement financial planning

A strong post-exit strategy begins with a clear personal vision. Broadening out from that "ideal Tuesday," ask what a whole year looks like. Which roles will fill your time? Which priorities matter most — legacy, relationships, health, learning or something else?

A personal plan takes that vision and ties it to financial reality by mapping specific lifestyle decisions — travel, philanthropy, new ventures — to specific income sources and financial resources.

Personal planning should start before the business exit and run a regular quarterly and annual path alongside your business planning. It is the same cadence. Its financial architecture might distinguish between money set aside for lifestyle, investing, starting another company or charitable giving.

A good plan also acknowledges that life after an exit is rarely a solo decision. Owners should have conversations with their families about expectations for their newly acquired time and the role they want to play in the years ahead.

Of course, hobbies still have an important place. An owner might say something like: "Within six months of closing, I will sit on one nonprofit board, play golf twice a week, and take one trip with my family each year."

Those commitments fit within the income plan, and all aspects — including hobbies — are woven into a broader structure of purpose, relationships and responsibility.

A hobby can fill a Saturday. Only a personal plan can carry the weight of the decades after an owner exits.

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• How to Tackle the Nowhere-to-Be Thing in Retirement and Make a Winning Play With Your Time
• Gary Has a Plan for Retirement: Crash on the Sofa and Veg. Here's the Problem With That …

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

A shifting economic landscape is reshaping venture capital in real time. The mandate hasn't changed — returns still need to materialize within a decade, often sooner — but the path to get there has.

Investors are tightening their filters, raising the bar and taking a far more disciplined approach to where they place their bets.

The old "spray and pray" model is fading fast. In its place is a more selective, high-conviction strategy: Fewer deals, deeper diligence and far more hands-on involvement. For startups, that means the margin for "almost good enough" has all but disappeared.

Writing a check is no longer enough. Venture capital now demands active involvement from both investors and founders. Those who simply fund or collect checks without participation are at a disadvantage.

The playbook has changed because the relationship has changed. The dynamic between investors and founders is evolving from arm's-length backing to active partnership.

The passive, brand-name VC has given way to builder-investors. It is less glamorous and much more demanding — walking the factory floor, digging into the codebase and solving real operational challenges side by side with founders.

Pressure from all directions

This shift is unfolding against a tougher backdrop: Inflation, higher interest rates, geopolitical tension, tariffs and waves of layoffs. Pressure is coming from every direction. It's a far cry from the conditions that defined the past decade.

For years, growth came easily. Capital was abundant, markets were expanding and portfolio companies often thrived with minimal investor involvement. A rising tide lifted just about every ship. Startups with the right idea and even modest traction could attract funding, despite clear cracks beneath the surface.

That tide has receded. Growth is harder to find, margins are under pressure, and execution matters more than ever. In this environment, venture capitalists can't afford to sit back. They have to get into the business and help companies navigate turbulence in real time.

The bar for funding is rising across the board. Traction is no longer a nice-to-have. It's the price of entry. Investors want to see a real, growing sales pipeline, not just a promising idea or early signals. Without that, even a well-crafted pitch is likely to fall flat.

That shift creates a far more demanding landscape for early-stage founders. The expectations have moved upstream, requiring companies to prove momentum earlier and with greater clarity, before outside capital comes into play.

What used to be light-touch engagement has become deeply operational. Investors aren't just advising from the sidelines — they're actively helping to build the business.

That means working the sales pipeline, making client introductions, following up, supporting hiring and recruiting, tightening budgets and forecasts, and even weighing in on product and engineering decisions alongside development teams.

In some cases, the line between investor and operator is blurring entirely. It's no longer unusual to see a co-investor serving not just on the board, but embedded in day-to-day operations. That would have been unthinkable a few years ago. Check-ins and occasional guidance have been replaced by real, ongoing involvement.

Even at the top end of the market, the shift is evident. The specifics may vary depending on stage and investment cycle, but the expectation is consistent: Founders want, and increasingly need, more than capital. They want engaged partners.

That engagement shows up across the firm:

• Platform teams are more involved
• Partners are making direct introductions
• Talent leads are helping shape recruiting strategy
• Associates are rolling up their sleeves and contributing in meaningful ways

That means more touchpoints, more accountability and far more hands-on support than ever before.

Raising the bar

This shift raises the bar for both founders and investors.

For founders, the takeaway is straightforward: Not all capital is equal. The right investor brings far more than a check.

As you raise, be selective. Look for partners who can help you operate, open doors to key customers, make meaningful introductions, connect you to strong co-investors and show up when it matters.

In this environment, who is on your cap table can matter just as much as how much you raise.

For investors, the bar has risen just as sharply. Access to the best deals no longer comes solely from past wins. Founders are choosing their partners more carefully and seeking investors who add tangible value.

If you want to see the best opportunities, you have to show up as the kind of investor founders want: Engaged, credible and willing to roll up your sleeves.

Capital is still flowing. Just look at companies like Harvey raising $200 million at an $11 billion valuation. But the era of easy money and easy investing is over. What's replacing it is something more disciplined: Smarter capital, deployed with greater intention.

Whether this more hands-on, high-touch approach ultimately delivers better returns remains to be seen. But it reflects a return to fundamentals.

In a more volatile, less forgiving economy, venture capital is being pushed back to what it was always meant to be: A true partnership, grounded in building, not just betting.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Once upon a time, an average team faced a simple but frustrating problem: Their basketball was stuck high in a tree.

The team captain removed his shoe and threw it at the ball, hoping to knock it loose. The shoe fell back to the ground, while the basketball remained firmly lodged in the branches.

On their second attempt, the average team concluded that the issue was the strength of the team captain. After assessing each team member, they chose Joe, whose greatest strength was his throwing power.

Joe took a few practice throws, adjusted his stance and launched the shoe toward the basketball. The result, however, was the same: The ball stayed exactly where it was.

For their third attempt, the team shifted from strength to strategy. They conducted a team planning session, carefully analyzing the situation. They studied the structure of the tree, examined the branches and mapped out the precise point the shoe needed to hit to dislodge the ball.

When they implemented their plan, everything went exactly as they designed it. Yet, despite their perfect strategy, the basketball remained stuck in the tree.

Across the street, another team had been observing the situation. After watching the third attempt, they walked over to offer their help. The other team assessed the tree and then the shoe.

Without much hesitation, they threw the shoe into the tree, lodging it alongside the basketball.

The average team reacted immediately with frustration, pointing out that the situation had only worsened now.

Calmly, the other team responded that they did not make the problem worse. Instead, they removed the thing (the shoe) that was preventing the average team from seeing the obvious solution.

They then pointed to a ladder nearby.

How this relates to running a business

I've consulted with thousands of businesses, mostly RIA firms, for nearly 25 years now. And I have observed the pattern illustrated in the above story at many different levels and in firms of every size.

The distinction between the two teams is subtle, but significant. The average team believed the problem was the basketball stuck in the tree, and they focused all of their effort, strength and planning on dislodging it.

What they failed to recognize was that their solution — the shoe — was in the way. Until the shoe was removed, no amount of additional strength, effort or strategic planning would change the outcome … unless they were lucky.

In my years of consulting, I have found that from the outside, the best-run firms appear remarkably similar to their peers. They offer comparable services, serve similar clients and often rely on much of the same technology. The difference is not visible on the surface, unless you work inside those firms.

Internally, the best-run firms operate with a fundamentally different kind of logic. Their effectiveness, performance and growth rates are driven less by perfect strategies and more by how they think about problems.

They move faster not because they do more, but because they simplify decisions, identify what matters most and act on them without hesitation.

This logic is the defining difference between average growth and exceptional growth.

How the best-run firms separate themselves

I have been able to observe this clearly through the length and depth of our consulting relationships, many of which span years and even decades.

That kind of sustained engagement provides a unique vantage point: We are able to see not just what firms say they will do, but what they consistently do over time and how those decisions compound.

The best-run firms separate themselves because of this discipline.

The firms that have grown from small practices into national leaders, many of which I have had the privilege to work with, did not achieve their success by refining the equivalent of the shoe.

They achieved it because they consistently recognized when the method itself had become the problem. In doing so, they avoided the trap of repeated effort, the kind that consumes time and capital and ultimately exhausts talented people without producing meaningful results.

By contrast, average firms tend to spend significant time discussing their challenges, analyzing their situation and documenting their strategic or growth frameworks (or learning someone else's).

They provide detailed explanations of leadership dynamics, communication preferences, planning processes and internal meeting structures.

While these efforts are well-intentioned, they often fail to isolate the single limitation that is actually slowing their progress.

In many cases, the focus shifts toward improving performance within the existing approach rather than stepping back to question whether the approach itself is the problem. As a result, energy is applied in ways that feel productive but do not change results.

The best-run firms collapse and simplify that entire mentality. Instead, they operate from a more fundamental understanding: At any given moment in the growth of a business, there is a bottleneck (in consultant-speak, it's known as the Theory of Constraints) that limits the organization's ability to move forward.

Just as important, they have accepted that this is not a one-time exercise. Each time a constraint is removed, another emerges. Progress is achieved through continuous identification and removal of what is in the way.

Where these firms' success comes from

The effectiveness of these firms comes from their discipline. They do not get distracted by complexity, nor do they confuse activity with progress.

They remain focused on the single question that matters most: What is in the way, right now, today?

Once identified, they act decisively to eliminate or replace it and then immediately turn their attention to what follows. Over time, this creates a compounding effect that is often mistaken for superior strategy, talent or marketing, when in reality it is the result of consistent, focused implementation.

I understand that not every firm aspires to be the largest or most prominent business. However, regardless of size or ambition, the responsibility of leadership remains the same.

Your role is not to perfect every system, satisfy every preference or refine every strategy.

Your role is to identify what is preventing progress and remove it.

In other words, stop throwing the shoe — and go get the ladder.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In recent years, portfolio construction conversations often centered on where returns might come from next.

For the remainder of 2026, the starting point is shifting back toward a different question of how portfolios may behave if markets don't move as expected.

That change reflects a broader reassessment of diversification and downside management, particularly after recent market shifts challenged long-standing assumptions.

Take the 2022 market as an example. Stocks and bonds declined together, and the diversification benefit that many investors expected from fixed income did not materialize. Bonds worked as a hedge during previous market downturns, including the 2008 global financial crisis.

But more recently, correlations have proven less stable. While stock-bond correlations moved back toward negative territory after 2022, they have shown signs of shifting again. For advisers relying on a traditional 60/40 framework, that variability matters.

At the same time, ETF usage continues to expand as advisers refine portfolio construction tools. U.S.-listed ETFs gathered more than $1.5 trillion in net inflows in 2025, the highest annual total on record, according to State Street.

The report highlights how ETFs are increasingly used for targeted exposures and portfolio precision rather than solely broad index replication.

Within that broader growth, defined outcome and buffered ETFs have continued to gain traction. Assets in U.S.-listed defined outcome ETFs have grown to about $70 billion, with several billion dollars in net inflows in 2025, according to ETF Database's 2025 category analysis.

Forward-looking data also suggests sustained interest. In Brown Brothers Harriman's 2025 Global ETF Investor Survey, 29% of respondents indicated plans to allocate to buffered or defined outcome ETFs over the next 12 months.

Taken together, these figures suggest that defined outcome strategies may be moving beyond niche status and becoming more integrated into adviser toolkits.

Why now?

One factor could be renewed attention to how diversification functions in different market regimes. If stock-bond correlations are not consistently negative, relying solely on fixed income to provide downside protection may not deliver the expected results.

That has prompted some advisers to consider alternative approaches to managing equity risk while maintaining participation in the equity market.

Another factor is portfolio positioning. Despite strong equity performance over the past several years, elevated levels of cash and cash-like allocations remain in the system.

For some investors, re-entering markets with defined parameters around downside risk can provide a structured path back into equities.

When clients understand the range of potential outcomes in advance, including both the upside limitations and the downside buffers, conversations during volatile periods often become more grounded in agreed-upon parameters rather than short-term market headlines.

How does it work in practice?

In practice, advisers are incorporating defined outcome ETFs in several ways.

Some are carving out a portion of a core equity allocation, for example, within U.S. large cap exposure, and replacing it with a buffered strategy that maintains exposure to the same asset class while incorporating a predefined level of downside protection.

Others are using buffered ETFs as a redeployment vehicle for cash. Rather than moving directly from money markets into full equity exposure, advisers may choose a structure that provides participation on the upside while defining downside parameters.

A third approach involves carving out a portion of fixed income and reallocating to a buffered equity strategy. The goal in this case is not to eliminate fixed income, but to increase equity participation while incorporating a built-in layer of protection that does not depend on bond-equity correlation dynamics.

As these strategies have grown, misconceptions have emerged. One of the more common views is that the return cap embedded in many defined outcome structures represents an added "fee."

Structurally, the cap reflects the economic trade-off required to finance the downside-protection component.

Advisers evaluating these strategies must weigh that tradeoff in the context of client objectives and risk tolerance, but it is distinct from an explicit management fee layered on top of market exposure.

Bringing risk management to the fore

None of this suggests that traditional asset allocation frameworks are obsolete. Bonds continue to play an important role in income generation and duration management.

But recent market experience has reinforced a broader point that risk management considerations must be incorporated at the asset allocation stage, before they are urgently needed.

For advisers in 2026 and beyond, that shift is less about forecasting market direction and more about structuring portfolios with defined expectations. In that sense, risk management is not a defensive afterthought. It is becoming a core design principle.

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• Is Your Portfolio Overweight? How to Rebalance Your Way Back to Diversification

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As we near this summer's 250^th anniversary of America's creation, the independent spirit is strong. It's certainly creating more millionaires, a number that has doubled since 2020.

The next-level wealth is out there, too, with Forbes reporting that $1.17 million to $2.7 million in net worth puts someone in the nation's top 5%.

For independent advisers seeking more of these HNW clients, the opportunity — and challenge — is clear: How do you stand out in a landscape crowded by banks, major wire houses and other independents?

There's a reason you became an independent adviser, and that needs to show; it's your unique brand and core values. But just as important, how does your independence benefit the high-net-worth client?

Full-service integration is key, but there's a distinction between internal* and external professionals who can add to your advisory services. When you outright explain that distinction and its benefits to the client in front of you, you can win business with clarity and conviction.

What high-net-worth clients want (and expect)

High-net-worth clients rarely deal with simple planning issues. Their lives often include closely held businesses, trusts, estate questions, charitable goals, tax complexity and family dynamics across generations.

They need more than investment management. They need advice that fits together across legal, tax and financial decisions.

Generally, firms are making two main choices: Either bringing legal and tax professionals into the same office,* or relying solely on external legal and tax professionals to supplement the firm's core comprehensive (Income, Investments & Wealth Management, Tax, Health Care & Wellbeing and Estate & Legacy) financial planning services.

Types of Integration

As many independent firms grow, there is often a desire to add services internally* that were once external. Advisers will choose to bring legal and/or tax professionals together in the same office* to have a differentiator, a potential advantage over those who do not.

"Comprehensive financial planning" can be marketed as a convenience for clients, who can meet with all their financial professionals in the same office, perhaps on the same day — a total experience held under common ownership, control and operation.

For external integration, advisers choose to maintain traditional comprehensive financial planning functions while using separate tax and legal professionals outside the firm, working with them in ongoing relationships to serve the same client.

This can offer an unbiased perspective and oversight from outside the firm, as well as a similar level of integrated services (given well-defined external relationships).

Internal vs external integration

The appeal of the internal model* is easy to understand. A firm can coordinate and collaborate tax and legal functions (with proper verbal or written authorization) in a streamlined process and offer clients one office, one team and one brand. That sounds efficient and marketable.

But advisers should be honest about a potential tradeoff. Convenience is not the same as independence. When one firm controls investment, tax and legal planning, the client may get a seamless experience, but not enough independent outside oversight.

When the other disciplines, be they tax or legal, answer to the wealth management leadership, they often become beholden to them. Advice may still be coordinated and collaborated, but it's not independent when the same firm wears multiple hats, creating new, unnecessary liabilities and conflicts of interest for the firm and its clients that a true independent model avoids.

That is where an unbundled model can stand apart. The external integration model does not mean working alone. It means the client benefits from independent professionals across key disciplines.

In practice, that often means the adviser coordinates and collaborates (with proper verbal or written authorization) the overall strategy, while outside attorneys and tax professionals provide legal and tax guidance.

Those external professionals are not held under common ownership, control or operation of the financial adviser. They are free to agree, question or push back based on their own professional judgment. That creates checks and balances.

That is not fragmentation. It's coordination and collaboration.

True independence

Many advisers chose independence for good reasons. They wanted to move away from quotas, product pressure, cross-selling and centralized control. They wanted more freedom to serve clients well.

Yet some firms slowly rebuild the same structure they once rejected. They add departments, bundle services and create an internal system that starts to resemble the big institutions they left behind. The branding looks different, but the operating model feels familiar.

That should raise a hard question: Are you truly independent, or have you re-created a smaller version of the same model?

This is not a knock on growth. It's a warning about drift. If every professional involved in the client relationship is held under common ownership, control and operation, your model may be less independent than your messaging suggests.

Labels and messaging to attract HNW clients: Don't muddy the waters

Many high-net-worth clients meet advisers through various channels, including referrals, ads, seminars and centers of influence in their phone's social scroll.

The advisers they see in these channels often label and market their HNW services in many ways. Independent advisers often adopt titles such as "family office," "integrated wealth manager" or "private client services."

The trouble? These labels can mislead.

For example, "family office" is legally defined by the SEC as a firm that:

• Provides advice only to family clients (lineal descendants and certain key employees)
• Is wholly owned and controlled by family members or family entities
• Does not hold itself out to the public as an investment adviser

Most independent firms don't meet this definition, which can create confusion.

"Private client" was originally a bank term denoting exclusivity and white-glove service, but that doesn't necessarily describe integration.

Ultimately, it can be helpful to drop titles that don't fit. Instead, consider terms like "high-net-worth services" or "integrated wealth management."

More importantly, take time to explain your actual process. Explain exactly how your teams, internal and external, actively coordinate and collaborate for the client's benefit across their financial spectrum.

The HNW takeaway

In an industry where terminology can cloud the picture, the advisers who win are those who clarify how their assembled team delivers real integration. They do this with transparency and client-first planning.

Ultimately, clients need a planning structure and professionals who can work together for them, combining coordination and collaboration with objective review and oversight. That's the real message. True independence means independence for all involved, including the client.

If you can explain that plainly in the high-net-worth world, you offer something many firms do not.

* Tax Services (tax advice, tax returns & forms preparation & filing) and Estate Planning Services (legal advice, estate planning legal document preparation & execution) may be housed in the same or nearby office. However, they must be separate legal entities from your investment advisory and/or insurance practices (i.e., they may be held under common ownership, control, or operation).

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

According to the latest research, a growing number of U.S.-based CEOs, entrepreneurs and high-net-worth individuals (HNWIs) are quietly building a plan B in Europe.

There has been a huge upsurge in enquiries about relocating and gaining European citizenship in the past two years, as well as a recorded increase in emigration. Many commentators see this shift as a strategic response to rising geopolitical uncertainty and political polarization at home.

Multiple factors driving demand

While violent crime and civil unrest in the U.S. are cited as key reasons for the increasing interest in emigration, fiscal strain also plays a role. Many investors are showing increasing caution around U.S.-based investments due to perceived economic insecurity and doubts about the long-term stability of the U.S. dollar.

Some voices have even questioned its future position as the foundation of the petrodollar system and a widely perceived current overvaluation of the U.S. stock market is also contributing to a growing lack of confidence in the U.S. economy.

In light of this instability, Europe is increasingly viewed as a viable alternative for many Americans. They see it as more politically stable and a safer place to raise a family.

Healthcare is perceived to be cheaper and more readily available, and, in a post-Covid world characterized by remote working, living there is no barrier to running a business.

While some may see the flexibility provided by dual/multiple residency and citizenship simply as the latest luxury, the lower cost of living and promise of a more relaxed lifestyle make retiring in Europe a particularly attractive proposition for many.

Providing a pathway to citizenship

While most, but not all, EU countries will allow U.S. citizens to apply for and attain dual citizenship after a period of legal residency, the options for attaining residency through investment (known as a Golden Visa) are limited. Portugal, Cyprus, Latvia, Hungary, Greece, Malta and Italy are examples that will allow foreign nationals to get legal residency in exchange for substantial investment in the local economy.

Portugal, however, has a key USP when it comes to pursuing citizenship. It's the only one that provides a pathway to citizenship without insisting on relocation to achieve residency (although it's still an option for those who want it). This is especially attractive to North Americans who would prefer to continue working and paying tax within their own country while pursuing residency elsewhere.

It's important to note, however, that Portugal has just confirmed an extension of the timeline for citizenship from the previous five to, now, ten years. Although this had some impact on demand, it still makes it an attractive proposition for business leaders and HNWIs seeking to establish a workable Plan B.

Complex rules require expert advice

The evolving nature of residency/citizenship rules, like those playing out in Portugal, are just one of the reasons why it's sensible to seek informed, professional advice before you relocate.

Portugal, for example, doesn't have a legal framework for regulating fiduciary financial professionals, unlike the U.S. You'll be in a far stronger position if you work with licensed finance professionals with a strong track record of dealing with the complexities of the Golden Visa system.

Advice around the tax implications, both at home and within the chosen destination, can be complex and difficult to overcome without expert advice. The same applies to any financial restructuring of pensions and investments.

You may also need help with property sourcing and purchasing, not to mention investment thresholds and minimum stay requirements that apply in different jurisdictions. HNWI relocations may also require reputational and compliance checks.

Basic Golden Visa requirements for Portugal

Establishing dual citizenship, or residency by investment, needs to be seen as a long-term journey. For example, as a minimum, applicants for Portugal's Golden Visa will need to:

• Maintain legal residence in Portugal, which is not the same as tax residence, for a determined number of years. For a Golden Visa, legal residence requires maintaining the investment and spending an average of seven days per year in Portugal
• Have a clean criminal record
• Satisfy an A2 Portuguese language standard — equivalent to being an advanced beginner — either through completing a test called the Certificado Inicial de Portuguêse Lingua Estrangia (CIPLE), or a certified language course of 150 hours or more

Demonstrate ties to Portugal — a subjective requirement that basically asks applicants to show an interest in, or connection to, Portuguese culture.

During 2025, the U.S. likely experienced near zero net migration for the first time in decades, with more people leaving than arriving. While this trend is set to continue throughout 2026, interest is rising at a faster rate than actual relocation owing to the time, expertise and financial investment required.

For the majority, expert support from a residency and citizenship specialist will be the main driver in transforming 'Plan B' from a pipedream into reality.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Trust is in short supply these days, and not just in Washington.

Across American workplaces, confidence in leadership, information and intent has eroded, according to Gallup, in subtle yet deeply consequential ways. The result isn't just cultural discomfort; it's a direct hit to productivity, collaboration and performance.

Politics will grapple with the trust deficit in its own fashion. In business, however, the responsibility is more immediate and more actionable. Rebuilding trust isn't a messaging exercise: It requires a fundamental shift in how leaders show up, communicate and make decisions.

Why now? The ground has shifted. Employees operate in a more complex, skeptical information environment. The line between fact and fiction feels more blurred than ever.

Conflicting narratives and AI-driven deepfakes amplify this confusion. In this environment, trust is no longer assumed. It has to be earned — deliberately and consistently.

Adapting to an AI-integrated workplace hinges on one thing: Trust. Not the kind you frame on a wall, but trust that is built into the operational fabric of the organization. It shows up in how communication flows, decisions are made and how organizations learn at scale.

This is especially true now. People curate their own information streams and shape their own versions of reality, typically validating their existing world view. Inside and outside the workplace, individuals gravitate toward like-minded perspectives. Cliques reinforce these viewpoints.

Breaking through these filters requires leaders to be deliberate, consistent and credible, which requires them to go beyond traditional culture efforts.

The bottom line: Barriers are going up inside your organization. It's up to capable, forward-thinking leaders to break through them, earn buy-in, build confidence and make a clear, credible case for the path forward.

Fear of losing control

According to the 2026 Edelman Trust Barometer, a global survey of more than 33,000 people across 28 countries, 70% of people are now unwilling or hesitant to trust someone who differs from them in values, background, culture or approach to social issues.

This isn't polarization anymore. It's something more insidious: Insularity. And it's quietly destroying collaboration, productivity and innovation in workplaces everywhere.

The consequences are stark and measurable. Forty-two percent say they would rather switch departments than report to a manager with different values. Thirty-four percent say they would put less effort into helping a project team leader who has different political beliefs.

This isn't about office politics or personality conflicts. This is a fundamental breakdown of the social contract that underpins organizations' functioning.

When teams can't trust across differences, projects stall. Innovation dies. The best ideation is disrupted due to the lack of cognitive diversity and constructive conflict.

The result: People self-segregate into their ideological comfort zone.

Even within this environment, there's a clear path forward if leaders address the underlying dynamics head-on. Start with a simple reality: A meaningful segment of your workforce will be hesitant to embrace any change and specifically AI-driven change designed to boost productivity gains.

Why? It's not fear of change. It's fear of losing control.

AI, by its nature, makes people feel displaced in their own roles. According to a 2026 ADP research survey, only 22% felt their job was safe from elimination, with workers reporting feeling less certain about where they fit, how decisions are made and what remains in their hands.

That perceived loss of control fuels anxiety. The issue isn't the technology itself; it's the uncertainty it creates. When people feel they no longer have agency, resistance follows. Understanding that distinction is the first step to address it.

Leaders must recognize this fundamental shift in the workplace. Focus on empowering your people to expand their capacity to process everything happening. The only way to expand it is by raising their level of awareness.

The co-creation principle

There is a practical way through this: Involve people in building what comes next because people commit to what they help create.

As AI integration reshapes workflows, decision-making and expectations, employees' voices should be integrated into the design process. Let them help choose what tools are used, how processes evolve and what new norms take hold. Participation drives ownership, and ownership drives adoption.

That's why the age of AI isn't just a technology shift — it's a cultural one. And culture still does what it has always done: It determines whether strategy actually works. You can have the best AI roadmap in the world, but if the culture resists it, progress stalls.

In the past, organizations could operate with a baseline level of skepticism and still function. In an AI-driven workplace, that's no longer the case. Without trust, adoption slows, collaboration weakens and productivity suffers. Building that trust isn't optional. It's fundamental.

For organizations, the path forward requires discipline. Recognizing the environment you are actually operating in, not the one you wish existed. Then, take a hard look inward. Where are you misaligned between intention and execution, strategy and rewards, culture and compensation?

From there, move into action. Build human verification into AI workflows. Train your systems properly, because the old rule still applies: Garbage in, garbage out.

Just as important: Design environments that help people stay grounded and focused. Invest in practices that build resilience and expand capacity across the organization.

And through it all, engage your employees in the process. Give them a voice in shaping change.

I said it before and I will say it again, people commit to what they help create. In a low-trust, AI-driven workplace, that may be the most important advantage you have.

So take the lead: Invite your team to co-create. Organizations that figure this out won't just survive the age of insularity; they'll define what workplace success looks like on the other side.

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• Looking to Adopt AI in Your Finance Org? Consider These Factors First

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Each week in our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter editor, answers questions on topics submitted by readers. This week, she's looking at four questions on available tax breaks for retirees with a side hustle. (Get a free issue of The Kiplinger Tax Letter or subscribe.)

1. Medicare premiums

Question: I am 72 years old, and I pay monthly Medicare premiums. I retired from my full-time job four years ago. I am now a part-time consultant and file Schedule C, reporting my income and deductions from my part-time gig, with my federal tax return. My financial advisor said I can deduct my Medicare premiums that I pay, even though I don't itemize on Schedule A. Is that true?

Joy Taylor: Yes. As a general rule, medical expenses, including premiums paid for medical insurance and Medicare premiums, are deductible only by itemizers on Schedule A, and only to the extent that total medical expenses exceed 7.5% of adjusted gross income. There is an exception for self-employed individuals who file Schedule C. They can deduct premiums that they pay for medical and dental insurance and qualified long-term-care insurance without itemizing on Schedule A. They claim the self-employed health insurance deduction on Form 1040, Schedule 1, part II, line 17. Parts A, B and D Medicare premiums that you pay for insurance in your name are part of that deduction.

2. Business driving

out expenseQuestion: I retired from my full-time job a few years ago and receive a pension. I decided this year to take on part-time work as a dog walker. I work for myself, and I drive to my clients' homes to walk their dogs. I plan to file Schedule C with my 2026 Form 1040. Can I deduct the standard mileage rate for my business driving?

Joy Taylor: Yes. The cost of business driving for self-employed individuals is a deductible business expenses. You can claim either your actual expenses, including gas, repairs and depreciation on your car, or the IRS's standard mileage allowance. For 2026, the standard mileage rate for business driving is 72.5 cents per mile. If you use the IRS's standard mileage rate, you can also deduct the cost of any tolls or parking fees that you pay.

Be sure to keep a contemporaneous mileage log detailing each of your dog-walking trips. It will make it much easier for you to figure your total business mileage when you are preparing your tax return. It will also help you if you are ever audited by the IRS. Sloppy recordkeeping makes it easy for an IRS revenue agent to disallow your deduction.

3. Qualified business income deduction

Question: I recently retired from my full-time job, and I am now an independent freelance writer. I plan to file Schedule C with my 2026 Form 1040. Can I claim the 20% qualified business income deduction?

Joy Taylor: Generally, yes. Self-employed people, independent contractors and owners of LLCs, S corporations and other pass-through entities can deduct 20% of their qualified business income (QBI), subject to limitations for individuals with taxable income in 2026 of more than $403,500 for joint filers and $201,750 for single filers and head-of-household filers. This tax break, first enacted in the 2017 Tax Cuts and Jobs Act, was slated to end at the end of 2025. But last summer's "One Big Beautiful Bill" permanently extended the QBI write-off.

Note that you don't claim the QBI deduction on Schedule C. Instead, you would attach Form 8995 or 8995-A to your return and take the write-off on line 13a of Form 1040.

4. Home office

Question: I am a lawyer. I retired five years ago from my law firm. Even though I'm retired, I still do legal work for some clients on a part-time basis. I am an independent contractor now and file Schedule C with my tax return. I recently turned one of the bedrooms in my house into a home office where I can do my work. Can I claim the home office deduction on Schedule C?

Joy Taylor: Yes, if you meet all of the rules for claiming the write-off. Even though employees can't take a deduction for home office expenses, the write-off is available to self-employed people or independent contractors who file Schedule C with their 1040 and use a room or space in their home or apartment exclusively and regularly as their principal place of business. If you qualify for the write-off, there are two ways to figure the deduction. You can allocate your actual costs on Form 8829. Or you can use a simplified option by deducting $5 per square foot of space used exclusively for business, up to 300 square feet, resulting in a $1,500 maximum write-off.

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Subscribers of The Kiplinger Tax Letter, The Kiplinger Letter and The Kiplinger Retirement Report can ask Joy questions about tax topics. You'll find full details of how to submit questions in each publication. Subscribe to The Kiplinger Tax Letter, The Kiplinger Letter or The Kiplinger Retirement Report.

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Not all questions submitted will be published, and some may be condensed and/or combined with other similar questions and answers, as required editorially. The answers provided by our editors and experts, in this Q&A series, are for general informational purposes only. While we take reasonable precautions to ensure we provide accurate answers to your questions, this information does not and is not intended to, constitute independent financial, legal, or tax advice. You should not act, or refrain from acting, based on any information provided in this feature. You should consult with a financial or tax advisor regarding any questions you may have in relation to the matters discussed in this article.

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For decades, obtaining a second passport was largely associated with lifestyle aspirations — retiring in Europe, reconnecting with family heritage or spending extended time abroad.

Today, however, a growing number of owners of U.S.-based small and midsize businesses are pursuing second citizenship or long-term residency for a very different reason: To strengthen their companies.

What was once a personal decision is increasingly becoming a strategic one.

Behind the scenes, entrepreneurs across industries — from e-commerce and manufacturing to consulting and tech — are incorporating global mobility into their business planning.

A second passport or foreign residency is no longer just about where you live. It's about how your business operates, grows and adapts in an increasingly unpredictable world.

Many business owners think about risk in terms of cash flow, supply chains or market competition. But fewer consider how much their company is tied to a single country's regulatory, political and economic environment.

That's starting to change.

A strategic move

For some entrepreneurs, a second citizenship acts as a form of strategic insurance. It can provide the ability to quickly relocate operations, open doors to new markets or ensure the business can continue functioning smoothly if conditions in one country become less favorable.

This doesn't mean abandoning the United States — it often means adding flexibility and creating options that didn't previously exist.

One of the most immediate advantages of second citizenship — particularly in a European Union country — is access.

For example, holding citizenship in a European Union (EU) member state allows business owners to live and work freely across all EU countries. That can simplify everything from opening a branch office to meeting clients in person without visa constraints.

For companies that rely on cross-border operations, this can be a meaningful advantage. It reduces friction, saves time and allows for more agile decision-making.

Even outside the EU, residency programs in countries with favorable trade relationships or regional access can help businesses expand more efficiently.

Widening the hiring pool

Another often-overlooked benefit is talent acquisition.

Hiring internationally can be complicated, especially when immigration rules, sponsorship requirements and processing delays come into play. Business owners with legal status in another country may find it easier to build and manage teams across borders.

In some cases, it can also make the company more attractive to global talent. Employees might be more willing to join a firm that already has an established international footprint and the ability to operate in multiple jurisdictions.

Uninterrupted service

The past several years have underscored how fragile supply chains can be. From pandemic disruptions to geopolitical tensions, many companies have experienced delays, rising costs or sudden changes in availability.

Having a legal and operational foothold in another country can help mitigate some of these risks. It might allow businesses to diversify suppliers, establish alternative production locations or shift logistics strategies more quickly.

The goal isn't to move everything abroad; it's to avoid being overly dependent on a single system.

Several steps to take

While the advantages can be significant, pursuing second citizenship or residency is not without complexity.

First, there's the time and administrative effort involved. Depending on the country and the pathway (whether through ancestry, investment or residency), the process can take months or even years.

Second, there are legal and tax considerations. The United States taxes its citizens on worldwide income, regardless of where they live. Obtaining another citizenship doesn't change that.

Business owners should work with qualified tax and legal professionals to understand how a second status might affect their obligations.

There can also be compliance requirements in the new country, including reporting obligations, local regulations or business registration rules.

Finally, not all programs are created equal. Some residency or citizenship-by-investment options come with high costs or changing regulatory environments. Due diligence is essential.

Where to locate

The "best" country depends heavily on your business model and long-term strategy.

Entrepreneurs with European clients or expansion plans often look to EU countries for the mobility and market access they provide. Those in industries such as manufacturing or logistics might prioritize locations with strong infrastructure and trade connectivity.

Others might focus on countries with favorable business climates, streamlined bureaucracy or access to specific regional markets.

For Americans with European ancestry, citizenship by descent can be one of the most cost-effective pathways, as it's based on lineage rather than investment. In these cases, the primary investment is time and documentation.

A different mindset

What we're seeing is part of a broader shift in how business owners think about resilience and growth.

In the past, international expansion often came later, once a company was firmly established. Today, many entrepreneurs are building with a global mindset from the outset. They are asking not just "Where do we operate now?" but "Where might we need to operate in the future?"

Second citizenship or residency is becoming one of the tools to answer that question.

Final thoughts

Not every business owner needs a second passport. For many, it might not be necessary or practical.

But for those with international clients, cross-border operations or a desire to build in more flexibility, it can be worth exploring.

The key is to approach it not as a lifestyle upgrade, but as a strategic decision — one that should be evaluated alongside other long-term business considerations.

In a world where change is the only constant, having options is increasingly valuable. For a growing number of entrepreneurs, a second passport is simply another way to create them.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Every day now, there is one term we seem to hear constantly on the news: Negotiation.

You would think that most lawyers would be pretty good at it, and you might even assume we were all required to take courses about negotiation in law school.

Nothing could be further from the truth, and I'm going to tell you why the just-published Never Settle: Persuasion and Negotiation Skills to Get What You Want will, in my opinion, soon knock other "negotiation bestsellers" off their pedestals and will help everyone who's looking for a commonsense, understandable, actionable guide that takes the mystery out of the negotiation process.

Plus, it's an enjoyable read.

The authors, Attia Qureshi and John Richardson, have taught at Harvard and MIT and have real-life experience with high-stakes negotiating, including hostage situations involving the FBI and negotiations in the world of diplomacy. Their outlooks provide a seriousness that's often lacking in attention-grabbing, commercially driven titles.

Also, their personalities — delightful on Zoom — are ever-present in this gem of a resource.

I'll share more of what makes Never Settle a worthwhile read in a moment, but first, here's a brief story of embarrassment, told by "Janet," an attorney and spouse of a lawyer fresh out of school. Her husband had been assigned to conduct a complicated lease negotiation at the firm where they both work.

"'James' had no experience in negotiations, but the senior partner told him to 'use our library and find things to read on negotiations.' He did that, we both met the other side in this matter, and within minutes, it was horrible. My husband just fell apart. He caved in and gave away 'the farm'!"

She asked, "Mr. Beaver, do you know of some accessible book not filled with jargon that we can read, because everything (James found) in the firm's library (focused on) complicated theory."

Janet had zeroed in on one of the greatest shortcomings of so many books that claim to "make you a better negotiator": They are filled with jargon and lack practical guidance.

And, would you believe, there are more than 10,000 books available on Amazon in the category "Negotiating - Management & Leadership," covering various aspects of business and personal negotiation.

What makes this book so different?

Even excellent books on negotiation often share a common limitation: They are primarily based on theory, and readers can be left with the illusion of having gained competence just by reading alone.

The fundamental premise of Never Settle is that we do not get favorable results by studying theory about the negotiation process but, instead, by practicing the actual skill. When you learn to, say, play golf, tennis or the piano, it takes disciplined practice — not memorizing a set of rules — to create a champion.

This approach is what makes the book a real standout. It does not leave you filled with concepts, thinking, "Yes, I get it." Only to realize, during a real negotiation, as you turn all colors of the rainbow, "I thought I could do it, but I can't."

The authors make clear that "learning about negotiation is not enough — you've got to train for it."

And that is precisely the angle the authors take, just like a coach would. In a constructive way, they take us through exercises, drills and practical scenarios applicable to everyday life.

They encourage us to "gamify" simple interactions in role-playing simulations — for example, asking for minor concessions, practicing how to refuse and listening to the persuasive power of our tone of voice.

The exercises are more than games, though. They help us develop skills that become readily available when we're dealing with serious issues. By weaving practice into the reading experience, the authors encourage us to use what we've learned, which leads to confidence, strategies and competence.

This is where the book outperforms others. Never Settle does far more than provide a knowledge basis. It serves as a training manual — with a giant dose of "Vitamin Yes, I can do this!"

Additionally, because the authors frame negotiation as a daily activity, it becomes a life skill, rather than a specialized skill reserved for lawyers or executives.

Emotional intelligence and self-awareness

Understanding your own interests, as well as the other party's, is an important feature of the book.

I can tell you from my own experience in business and family law that, when sitting down to a four-way negotiation, each side represented by an attorney, failure is virtually guaranteed if you don't have a clear understanding of the difference between what your client tells you they want and what they actually want.

The same is true for the other party. It is a matter of being self-aware, without getting hung up on tactics, strategy and pressure, and focusing instead on your client's priorities and acceptable outcomes.

The authors want us to put ourselves in the other side's shoes and work toward a fair resolution.

Where ethics and integrity matter

I have read several negotiation books that encouraged manipulation, a win-at-all-costs approach and a scorched-earth philosophy that turned my stomach. I've seen this in action, with lawyers trading short-term gains for destroyed relationships.

Never Settle is the breath of fresh air we need at this time in our country, where ethical conduct and integrity often seem to be missing. The authors preach the gospel of achieving mutually beneficial outcomes and, at all times, maintaining good faith.

For anyone who has had difficulty mastering the art of negotiation, Never Settle's exercises and can-do approach set you on a path of confidence and competence in what mankind has always done — bargain.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Business strategies, like trends, come and go. Hierarchies and debt-fueled growth were once popular until their flaws emerged.

When you're building a business, what truly lasts are the fundamental approaches that reliably deliver results and deserve every entrepreneur's focus.

Those trusted strategies aren't flashy, and they don't promise overnight success. They're grounded in fundamentals: Disciplined execution, a clear understanding of customers, prudent capital use, and leadership that values long-term growth over quick wins.

In an era obsessed with disruption and shortcuts, it's often these basics, quietly and consistently applied, that separate businesses that scale from those that stall.

Business fads that fade

Human nature leads business leaders to hunt for a "silver bullet" — the strategy that will magically cure chronic problems holding growth back. In my experience, that search is usually misguided. The answer rarely lies in the latest business fad. More often, it's found in proven approaches that have worked across cycles and industries.

Call me a traditionalist. I'm comfortable with the label. After years of advising bootstrapped businesses on how to build sustainable models, I've learned to spot the difference between flash-in-the-pan strategies and those with real staying power.

Entrepreneurs should be cautious about chasing untested ideas simply because they are trending. Novelty can be entertaining, even inspiring. But when real money, jobs and livelihoods are on the line, excitement is not a substitute for sound judgment.

A business strategy deserves the same scrutiny as any major decision: Tested assumptions, clear trade-offs and a realistic path to results.

Looking back at old business fads shows how the "next big thing" quickly fades. Six Sigma, once popularized by GE chief Jack Welch, eventually gave way to bureaucracy and lost much of its appeal.

Or quality circles, which are well-intentioned imports from Japan. On paper, they sounded like a breakthrough. In reality, they often turned into box-checking exercises that looked impressive but delivered real results only occasionally.

For a while, both approaches were treated like gospel. Books, workshops and keynote talks all promised to reinvent how business works. Companies that jumped on the bandwagon presented themselves as visionaries, proudly signaling they were ahead of the pack.

But once the buzz faded, reality set in. Leaders realized no single framework could magically transform operations or guarantee growth.

What actually moved the needle were the fundamentals: Clear goals, strong teams, disciplined execution and willingness to adapt. Those may not sound flashy, but they survive every management trend cycle for a reason.

Basics never go out of style

Here's the inconvenient truth: The things that actually work in business aren't flashy. That's exactly why they work. They demand discipline and consistency that most competitors don't sustain. These approaches are easy to grasp but tough to execute, and they require patience rather than promises of overnight turnarounds.

When you lean into fundamentals, you build something that lasts: Solid customer relationships, clear value propositions, steady cash-flow management and a culture people actually want to be part of. None of those trends on social media, but all of it shows up in the bottom line.

Companies that endure lean on basics that never go out of style. Smart cost management isn't glamorous, but it's the backbone of every resilient business. Pair that with a genuine commitment to customer experience. Not the slogan-on-the-wall version, but the everyday practice of understanding what customers need and delivering it.

Add in building and nurturing a great team, the kind that grows with your company rather than burns out chasing the newest management fad.

Finally, there's agility: The ability to read the market, respond quickly and adjust without losing your footing. None of this makes headlines. But these fundamentals drive progress long after trends fade, in every cycle.

Stay informed

That doesn't mean shutting the door on new ideas. Staying informed is part of the job. Think of yourself as a sponge. Absorb the trends, listen to the noise, sift through it all. Even the flashiest fads usually contain useful nuggets worth extracting.

But approach them like you would when buying a car. Research. Kick the tires. If you've got three kids under 10, a two-seat sports car isn't a fit. The same goes for business strategies. The question isn't whether the trend is exciting; it's whether it suits your company's needs, culture and current stage of growth.

Once you've found something worth considering, engage your team. A CEO announcing a new idea rarely changes much. You need buy-in from those who actually make things work. Consider whether your team is ready and open to change.

The fundamentals — the unflashy basics — are what really drive business success: Manage costs, care for customers, build great teams and stay nimble. Trends will always come and go, but the mistake is pretending that any are magic fixes. Prioritize fundamentals, choose trends that fit, get alignment from your team and commit to long-term execution. That's what builds a business that lasts.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Something interesting has happened in the advisory world over the past few years. Independent advisers have built strong enough brands that high-net-worth families are increasingly willing to work with them.

And many advisers, looking at the work they do for a $500,000 family, are asking themselves, "If I could do the same amount of work for a $2 million family, wouldn't that be more profitable?"

The logic is understandable. The reality is more complicated.

Moving upmarket feels exciting and strategically smart, but many advisers who pursue it without preparation may end up hurting their growth rather than helping it.

By wandering into a space they're not equipped to serve yet, they could leave behind the mass-affluent clients they were well positioned to win.

If you're thinking about making high-net-worth families a legitimate part of your growth strategy, here's what you need to consider before taking the leap.

Needs vs wants: A fundamental shift

An adviser who works with us at AE Wealth Management said it well: "When you move upmarket, you're shifting from a needs-based relationship to a wants-based one. That distinction matters more than many advisers realize."

With a mass-affluent client — someone worth $500,000 to $2 million — the value proposition is relatively clear. There are typically gaps in their plan that, left unaddressed, could materially impact their retirement security.

The call to action practically writes itself: "Your plan has these gaps, and addressing them matters." There's urgency. There's tangible risk. The client feels it.

A $5 million family doesn't feel that same urgency. If their budgeting is reasonable, markets will likely cover them. The fear of running out of money in retirement doesn't resonate the same way. What this client is really asking is, "How do I maximize what I've built?"

That's a much harder question to answer well — one that requires an entirely different approach to planning, proposals and communication.

Adopting a new skill set

The shift from intellectual intelligence to emotional intelligence becomes critical here. Technical competence matters, to be sure, but high-net-worth families also expect their adviser to understand them deeply, from their psychological profiles and family dynamics to their relationships with money.

This task may be more difficult because wealthier clients are often worse at actualizing what they want from their money. Helping them figure out their goals and how to get there is the real work.

Approach high-net-worth advising as a new business line

If you're serious about serving high-net-worth clients, don't think of it as a gradual evolution of what you already do. Think of it as adding a new line of business to your practice — because that's precisely what it is.

When advisers branch out to add estate planning or tax planning to their firms, they don't just apply their existing tools to a new problem. (At least, I hope they don't.) Instead, they build the right infrastructure for the work.

The same logic applies here. Your mass-affluent business model and the people, tools and processes that support it can stay in place. What you need to build is a separate framework for high-net-worth families.

That framework requires you to make deliberate decisions across a few dimensions:

Build a value proposition that's specific to this audience. What you offer a high-net-worth client needs to be distinct from what you offer a mass-affluent client.

The messaging, planning approach and solutions must reflect that difference.

Define your target market precisely. "High net worth" is too broad to be useful. A $5 million family looks very different from a $15 million family, and a $25 million family is a whole other thing.

Decide which segment you're targeting and put the right tools and team in place to serve them effectively.

Consider specialization. There's a meaningful difference between targeting any $2 million to $10 million family and targeting, say, engineers or entrepreneurs who fall into that income range.

If you can become fluent in a specific niche, understanding their stock option plans, psychological profiles and priorities, you bring a level of credibility that's hard to replicate.

Your client lifecycle has to change, too

Attracting a high-net-worth client is only the beginning. How you propose solutions to them, how you review their plan and how you retain them over time all look different at this level.

Proposals need to cover different ground. High-net-worth clients have access to and expect a broader range of solutions. Tax strategy plays a more prominent role.

The product mix may include private markets or more sophisticated income solutions. The proposal itself needs to reflect that expanded scope.

Reviews also need to match the promise. If your initial proposal is more sophisticated, your ongoing review process should reflect that. Clients who signed on for a comprehensive, high-touch approach need to see it delivered consistently.

Retention at this level is also relationship-driven, in a particular way. High-net-worth families place a high value on connections with people who share their life experience.

The adviser who figures out how to facilitate those connections and bring together like-minded clients creates a kind of value that goes well beyond portfolio management. You become a connector for a community, not just a collector of assets.

A note on 'new' high-net-worth clients

There's one more thing worth noting: Working with a $2 million family today is not the same as it was even five years ago.

Markets have risen dramatically, and a meaningful number of people who now have $2 million may have never expected to get close to that number. They may not have the same financial acumen or emotional relationship with wealth that a client who inherited generational money or someone who built wealth over decades may have.

Understanding where your clients fall on that spectrum matters when you're designing how to serve them.

Preparing to move upmarket

Going upmarket is a legitimate growth strategy, but it's important to be ready for the move. Advisers who win high-net-worth clients through pure inertia (a referral here, a community event there) may find themselves in client relationships they're not fully prepared to serve.

If you're willing to make the necessary changes to your value proposition, infrastructure, team and overall approach to client relationships, the opportunity is real.

If you're not, you may be better off focusing on three to five more mass-affluent families than chasing a family you're not set up to serve well.

The question to ask yourself isn't whether high-net-worth clients are worth pursuing; it's whether you're ready to build the practice that can serve them the way they expect to be served.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many experienced advisers eventually find that opportunities to work with ultra-high-net-worth families begin to surface more often.

Sometimes the path is gradual, as long‑standing clients accumulate wealth over decades. Other times it arrives abruptly through a referral whose balance sheet, family dynamics or business interests are already complex.

In both cases, the opportunity is often accompanied by hesitation.

The hesitation is not usually about competence. It is about structure. Advisers can worry that serving ultra‑affluent clients requires becoming something fundamentally different: A firm with far more services, deeper specialization and family‑office‑level infrastructure.

The perceived tradeoff is stark: Either remain within a familiar advisory model or rebuild the firm entirely to move upmarket.

In practice, this is often a false choice. What distinguishes effective ultra‑affluent advice is not the breadth of in‑house services, but the clarity and rigor of the strategic framework guiding them.

Complexity does not require complication

Ultra‑affluent families often do have complex financial lives. They may hold operating businesses, private investments, multiple properties and trusts, and they may have cross‑generational obligations and unique family dynamics. Risk enters their system through more channels, and the consequences of mistakes can be greater.

Advisory firms often struggle at higher wealth levels because advice delivery becomes additive rather than integrative. Planning, investments, estate planning, tax strategy, insurance and other services are often handled in isolation and not clearly connected. The firm appears more sophisticated, yet the advice itself can feel less coherent.

As wealth increases, complexity can reduce clarity, constrain effective decision‑making and lead to unintended outcomes.

Affluent households benefit from frameworks that organize tradeoffs, clarify priorities and provide context for each decision.

Standardize best practices and still deliver bespoke advice

Every client can benefit from customization. However, the way advisers think about wealth, risk and tradeoffs can remain consistent across households.

Advice and the client experience can be elevated when the language used to explain decisions is stable and the process by which choices are evaluated is repeatable and deliberate.

Judgment, however, should reflect each client's unique situation. Solutions should reflect each family's distinct priorities and preferences. Clients' balance sheets, constraints, family dynamics and objectives all benefit from tailored solutions.

Personalization is applied to specific decisions made within a consistent, standardized advice framework. This distinction allows firms to deliver deeply personalized advice without creating operational chaos.

Total wealth as the organizing structure

A total wealth framework can provide a stabilizing structure that allows advisers to move upmarket effectively.

Total wealth extends far beyond investable assets. It includes homes and mortgages, operating businesses, private investments, human capital, pensions, Social Security, insurance, expected estate transfers and future cash flows. Each element carries different risk characteristics, liquidity constraints and timing considerations.

Viewed in this broader context, the investment portfolio becomes just one of many components contributing to desired outcomes. Its value is elevated when treated as flexible capital — a "completion fund" designed to balance risks and opportunities embedded elsewhere in the household's financial structure.

Within this framework, risk management becomes structural rather than statistical. Instead of relying on probability‑based forecasts, advisers can use reserves, hedges, insurance, diversification and flexibility to reduce the consequences of adverse events.

Structural risk management recognizes that while we cannot change future events, we can change how they affect people.

This approach also supports scalable advice delivery. The underlying logic does not change as wealth increases. What changes is the number of moving parts and the potential consequences of poorly coordinated solutions.

Wealth allocation before optimization

Once total wealth is understood, the next step is to clarify purpose. Many affluent families already feel they have "enough," which can make goals-based and optimization‑oriented conversations feel less relevant.

Wealth allocation can offer a more compelling entry point. The conversation starts with intent: How does the family want to allocate its wealth across lifestyle, family priorities and broader impact?

This empowering framework encourages intentionality without relying on scarcity. It helps distinguish essential spending from important objectives and discretionary uses of capital. Tradeoffs that might otherwise remain implicit or emotional become explicit and manageable.

From this foundation, strategy follows.

• Asset‑liability matching can align total wealth portfolios with layers of spending and resource needs
• Estate structures can be designed more clearly to support the intended flow of wealth across generations
• Insurance can protect what must not fail
• Tax strategies can align with how wealth is meant to be used, not merely how tax liabilities can be minimized

Complexity is introduced only when it serves a clear purpose.

Importantly, this is personalization that scales. The framework remains consistent, while each family's allocation and resulting solutions reflect its unique priorities.

The virtual family office delivery model

Delivering this level of integration does not require building a traditional family office. Rather, it requires adopting a family office mindset. A virtual family office model places strategy at the center of the client relationship.

The adviser leads with comprehensive, integrated advice. Planning, investments, risk management, estate planning, tax and other domains are coordinated through a single strategic framework.

Execution can remain distributed. Attorneys, accountants, insurance specialists and other professionals are engaged as needed, but they operate within a shared framework rather than in silos. The adviser acts as the architect and integrator, without needing to own every capability in‑house.

This model scales precisely because it is disciplined. The client experience feels elevated not because more services are delivered, but because the advice is clearly structured, empowering and intentional.

Advisers can position themselves as wealth strategists who design systems rather than simply manage parts.

Ultimately, extending an advisory model upmarket is less about adding services and more about strengthening the strategic core.

Strategy becomes a distinct function, complexity is managed deliberately, teams align around shared frameworks, and advisers focus their judgment where it matters most.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Every business owner eventually leaves their business. It's preferable to leave it on your own terms, confident that the business can continue to thrive after you've stepped away.

The key to getting there is to start planning your exit long before the day you anticipate handing over the keys, which gives you time to map out your ideal business exit.

Talk succession before it's an emergency

Start your business exit planning three to five years before your exit, which gives you options you won't have if your exit is a panicked scramble.

Too many business owners wait until health or burnout forces the process to begin. Beginning the process before your exit allows you to look at things objectively and to be more thoughtful in your planning.

With years of preparation, you're able to take a critical look at your business and its trajectory, helping you to understand the best path forward for you and your business.

It also gives you ample time to enlist the help of a Certified Exit Planning Adviser (CEPA®) to guide you toward a successful exit.

With this critical look, you can also scrutinize who'll best fill your shoes. You might have someone in mind, but if you haven't had that conversation, they might not know you assume they'll succeed you.

Conversely, there might be people close to you who assume they're next in line to own the business, and unless you tell them otherwise, you might be in for some awkward conversations.

Family doesn't equal fit

Succession doesn't always follow a bloodline. Nobody is entitled to inherit your business if they aren't the best fit to lead the business.

Primogeniture, or the system in which the eldest child automatically takes the reins of a business after the parent steps away, was once so common, it was expected, but that precedent was set by a society that ran very differently than our society now runs.

There might be someone more suitable to take over your business than your child, sibling or other relative. Whether that's an outsider or someone already working within the business, it's a decision that should be made early so succession conversations can start long before your exit.

Try not to focus too much on a family "legacy." Sometimes, the best legacy is success and financial freedom — not a business staying in a family name.

Separate roles from relationships

A business run on emotion rarely survives its founder. Though it's likely true that you have a lot of love for family members who work at your business, it's important to look at your professional relationship with them through the lens of a successful business owner.

Clear job descriptions, fair compensation structures, and reasonable expectations should all be in place for all employees — related or not.

Preferential treatment to a relative can create a work environment where the relative takes advantage of the business, not giving the effort that should be given.

It can also create a work environment in which the other employees feel resentment for having to put in adequate effort when related employees don't.

When considering who within your business might be the best fit to take over the business upon your exit, examine the merit and leadership potential of each employee instead of considering how close their branch of the family tree is to yours.

Know your number and your tax plan

Exiting a business can't be the act of handing over the keys and walking away. There is a great deal of preparation that should happen to ensure you get the best price while also giving the business the best odds of continuing to prosper after your exit.

You need a solid exit plan, including a suitable tax strategy, regardless of who buys your business. Your tax strategy is a pivotal aspect of your business exit plan. Truth be told, the amount you keep after taxes often matters more than the amount for which you sell your business.

It's not something you should try to navigate on your own. Even if you managed to navigate the ins and outs of growing a business on your own, your exit should include a trusted guide.

An experienced exit-planning professional will guide you through the labyrinth of exit planning, including the process of obtaining a valuation, securing a buyer, getting a tax plan in place and moving into the next phase of retirement, if that's what's next for you.

Legacy isn't ownership; it's impact

When you first started your business, you might have had dreams and visions of a legacy in which you passed the business down to your children, who would later pass it on to their children, and so on. While that's an admirable legacy, it isn't the only route to a legacy.

Your legacy can be about what you built. It's not about who controls the business after you exit. Instead, focus on the purpose and culture you built and celebrate the continuity of that culture after you step away.

Careful planning and preparation will reveal if your family member is truly the best option to take over the business.

Remember that sometimes, doing what's best for the business is indeed what's best for the family, and vice versa. You're not obligated to pass your business to someone who won't usher it into its next phase of success, even if they're expecting you to.

Do what's best for you and your business, and enjoy the legacy you built.

Related Content

• The Key to a Successful Transition When Selling Your Business: Start the Process Sooner Than You Think You Need To
• How to Sell Your Business With No Regrets
• The Four Worst Mistakes to Make When Selling Your Business
• 5 Legal 'Loopholes' the IRS Wishes You Didn't Know (Plus, How to Use Them This Tax Season and Beyond)
• 8 Ways to Stay Safe When Making Cashless Payments

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Editor's note: This is the first in a series of articles on the planning considerations and decisions that business owners face over the lifecycle of creating and running a company.

When starting a business, one of the most important things to consider is how it will end. Whether you'll sell the business, step back and let your children or employees run it (or buy it from you), or just shut it down when you are tired of running it, thinking about the possibilities now will help you decide how to structure your business from the beginning.

And while it's impossible to know for sure what you'll eventually do with the business you're starting today, considering these details at the outset should ensure smoother sailing if problems arise as the business evolves.

1. What is the best way to structure and own your new business?

One of the first decisions to make is how to organize the business. There are several options, and without proper advice, some important considerations may be missed.

Organizing a business as a sole proprietorship, a corporation, a partnership, a limited liability company or an S corporation will have tax effects:

• Sole proprietorship. This is the simplest way to own a business, but it offers no liability protection, and the owner will be taxed on the business income and potential benefit from start-up losses.
• LLCs and limited partnerships. Offer liability protection with pass-through taxation and some flexibility over tax elections and potential benefit from start-up losses.
• C corporations. Offer liability protection, but profits must be taxed at the corporate level and again when distributed to owners.
• S corporations. Offer liability protection with pass-through taxation to avoid double taxation and potential benefit from start-up losses.

These tax effects will impact the operation of the business and, if the business is eventually sold, the way the sale will be treated from a tax perspective. It is therefore important to consider the possible outcomes associated with your choice of entity:

• What will your decisions do to your income tax liability — federal, state and local?
• Will an eventual sale of the business lead to capital gains tax treatment or ordinary income tax treatment?
• Will you have an entity-level income tax and a personal income tax liability from business earnings, and how will any losses be recognized?
• Are there approaches that provide tax advantages upon exit?

When a business is sold, the gain is often subject to tax. Depending on the structure of the business and of the sale, some may be taxed as capital gain and some may be taxed as ordinary income.

However, there are approaches to organizing the business at the outset that can mitigate the impact of these taxes.

One is organizing the business under the qualified opportunity zone rules, and another is organizing it so that it qualifies for the qualified small business stock exemption.

Both programs were enhanced or extended through the recent One Big Beautiful Bill Act (OBBBA), and if tax savings on sale is of interest, you should engage advisers to assess the viability in your particular situation.

There are planning techniques to minimize the taxes paid after the initial company setup, as well as before and even after the sale of a business, and some of those will be addressed in a future article in this series.

2. When starting a business with co-owners, how will you deal with conflict?

It is common for unrelated persons to start a business together. This makes sense for lots of reasons, not least of which are:

• No one person knows how to do everything
• Spreading ownership among multiple people means spreading the start-up and operating expenses of the business among them, thereby reducing the initial financial burden

However, sharing ownership with non-family members can also create complexities that you should consider at the outset of your journey. Thinking about possible conflicts before they occur often leads to a better outcome when conflict happens.

So, include provisions that address how you want to control and resolve conflicts.

For example, if the co-owner(s) of your business want to cash out at some point in the future, how do you want this to unfold?

Many business owners will include provisions that require the exiting owner to offer their ownership interest to the other owner(s) first, subject to a process that is contemplated in the governing agreement.

These provisions may include a methodology for valuing the ownership interest, payment provisions and permissible successor owners of that interest.

These provisions may also control how an owner may give their interest to others, and whether another has a first right of refusal if an owner wishes to give some of their interests away to family members, for example.

3. What are the tax benefits of transferring or gifting part of your business early on?

If you feel like the business will have significant value at some point — and after all, who doesn't think this when you start a business? — you may wish to consider transferring some of the business ownership interest to trusts for the benefit of your spouse, children and/or grandchildren.

The reason for doing this early is that the business will likely be valued at the lowest amount when you start it. Why does this make a difference? When you give something away — to a trust or outright — there is a federal gift tax on the value of what you have given away.

Often, this does not require the donor to pay a tax for the gift because everyone is entitled to a certain amount they can give away to a non-spouse free of federal gift or estate tax (gifts to a spouse are typically exempt anyway).

This amount is often referred to as the "unified credit amount," and, beginning in 2026, this amount is $15 million per person.

This means that you may give up to $15 million away during your lifetime before ever paying a federal gift tax, and if there is any unused unified credit amount at the time of your death, you may give the rest away after you die when property you own is passed by title, by operation of your last will and testament or by revocable trust, or by beneficiary designation.

4. When should you create a business succession plan?

Who should run the business when you no longer want to do so? Should those same persons own part of the business?

While it may be difficult to decide who will run your fledgling business when you eventually retire, this is worth considering as early as possible.

• Keep it in the family. If you believe your spouse, children and grandchildren will take over where you leave off, it may make sense to hold business ownership interests (or some of these interests) in a trust that benefits the entire family as a way to keep the business "in the family."
• Outside ownership with family control. If you believe that you will transfer control of the business to unrelated persons and you still want your family to benefit financially when you are no longer in charge, you may want the operating agreement to include provisions that directly address who controls the business, irrespective of who owns the business.
• Selling the business to a third party. If you think you will eventually position the business for sale to a stranger, you may want to incorporate some provisions in the operating agreement that will permit gifts of discounted ownership interests to family members or a trust that benefits family members at the outset, thereby enabling discounted gifts to family, who will then share in the sales proceeds outside of the owner's taxable estate.

Most of these decisions can be revisited and changed later, but thinking about the possibilities now may lead you to incorporate some thoughtful provisions into agreements that will benefit you and your family in the future.

5. What happens if an owner of the business dies or becomes disabled?

As uncomfortable as it may be to consider, what do the owners do if one of the co-owners dies or becomes disabled and unable to perform the duties they used to perform?

Lawyers, accountants and other advisers will tell you what they ordinarily see in these circumstances, but if you and your co-owners can imagine another solution, an attorney can draft for it.

The importance of these provisions cannot be underestimated. Although you are excited to go into business with your co-owner, would you feel the same way about operating the business with their spouse? How about their kids or a trustee of a trust for those kids?

Similar to the provisions that address the co-owner who wants to cash out while alive, provisions that address what happens when an owner dies should be contemplated as you begin to build a business.

You do not want the equity — financial and sweat equity — that you put into the business jeopardized by the untimely death of your partner. And frankly, your partner's spouse may not want to work with you either.

As fun as it is to start a business, do not ignore the details. Left unaddressed, the details can create fissures in the business — or break it entirely.

Christopher F. Tate, J.D., Partner and Wealth Strategist at Fidelis Capital, has nearly 30 years of experience and specializes in wealth planning, advanced estate planning and cash-flow planning, delivering comprehensive strategies to Fidelis Capital’s UHNW families and institutions.

Rick Simonetti, Founding Partner, CEO and Head of Wealth Planning at Fidelis Capital, is a deeply experienced expert on integrating wealth planning, family dynamics and tax management into financial decisions and advice. His visionary leadership is guided by nearly 35 years of industry experience.

Related Content

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• Why Business Owners Should Review Their Buy-Sell Agreements
• Seven Essentials When Preparing to Sell Your Business
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• Choosing a Corporate Trustee: The Pros and Cons

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Harlan couldn’t tell you much about retirement. He didn’t exactly retire in the traditional sense. But he could teach you a lot about self-reliance and determination – traits more older adults are putting into practice today.

He needed both when he started his business. After all, he was 65. But people loved what he was cooking up, so he kept going. Soon, he wasn’t just Harlan. He was Colonel Sanders, founder of Kentucky Fried Chicken.

It’s a familiar story now, and one that more people seem eager to follow.

The title "Founder" on LinkedIn jumped by 69% in 2025 and is up 300% since 2022. Driven by layoffs and economic uncertainty, many professionals are rebranding freelance or consulting work as entrepreneurship.

And while it may seem like a younger person’s game, it’s increasingly common among older adults.

Workers in their 50s and beyond often face challenges finding or keeping traditional jobs, but they’re also living longer, wanting to stay engaged and, in many cases, needing additional income. These older entrepreneurs share many of the same motivations as younger ones: autonomy, flexibility and meaningful work.

Research indicates that about 30% of Americans in their 70s, roughly 1.3 million people, are self-employed. And many are succeeding. According to a 2020 study, a 60-year-old who starts a new business is three times more likely to succeed than a 30-year-old.

But, what happens when you stop? Does becoming a founder help or hurt your retirement?

Whether you’re doing it out of necessity or interest, before you change your LinkedIn title, it’s worth thinking about how your retirement plan may need to change along with it.

The cost of the founder title

Stepping out on your own can feel exciting, full of possibility. But it also means leaving certain things behind.

David Haas, CFP® and founder of Cereus Financial Advisors, established his RIA at age 55 and says the transition can work well if it’s intentional.

"I think it can work out great if it’s done for the right reasons and the founder has considered the option of working for someone else," he says.

What can be overlooked are the trade-offs. You may lose employer-sponsored benefits, including a 401(k) match, health insurance and other forms of compensation. You’ll also be responsible for self-employment taxes and funding your retirement entirely on your own.

In other words, thinking about what you could lose is just as important as what you could gain.

As Natalie Pine, CFP® and managing partner at Briaud Financial Advisors, notes, "Potential mistakes of self-employment later in life typically involve spending money on a dream that drains resources and doesn’t amount to much."

And the costs aren’t just financial. Many traditional jobs provide structure, community and mental stimulation — things that can be easy to overlook until they’re gone.

"Your new venture needs to address those needs intentionally," Mitchell Kraus, CFP® and founder of Capital Intelligence Associates, says, "or you'll find yourself working just as hard for half the income with none of the fulfillment."

Your new retirement toolkit

The good news is that self-employment comes with powerful retirement savings options, often with higher contribution limits than traditional plans.

"The financial mechanics of becoming a solopreneur later in life are actually very solvable," says Kraus.

What works best depends on your income and the consistency of your cash flow. As Haas explains, "If the founder still has to save more for retirement, then it’s vital that they try to do so from the company’s cash flow. The best method will vary by company. The SEP IRA is simplest, and then the Solo 401(k). A defined benefit plan will require a consistent cash flow that few founders can immediately support."

A SEP IRA allows you to contribute up to 25% of your compensation (effectively about 20% of net earnings) or a maximum of $72,000 for 2026, whichever is less.

A self-employed 401(k), or Solo 401(k), functions much like a traditional employer plan, but allows you to contribute as both the employee and the employer. In 2026, total contributions can reach up to $72,000 for those under 50. Catch-up contributions add another $8,000 for those ages 50 to 59 and 64 or older, while those ages 60 to 63 can contribute up to $11,250 more if the plan allows.

For high earners, the difference can be meaningful.

"For those wildly successful," Pine says, "we see tremendous potential to enhance retirement savings with the opportunity not only to maximize a defined contribution plan like a Solo 401(k) but a defined benefit plan in addition if they are self-employed. If they add employees, they can start a new comparability plan that can max [out] owner deferrals based on age while providing a modest retirement for other employees."

Health insurance: The biggest wild card

If there’s one area that consistently catches new founders off guard, it’s the cost of health care. Haas describes it as "one of the biggest thorns."

For those between 55 and 65, the challenge is the Medicare gap. Without employer coverage, many founders must rely on COBRA, a spouse’s plan or the ACA marketplace.

"I was on COBRA when I first started," Haas says, "and then transitioned to a MEWA plan available in New Jersey. In many states, an option like this is unavailable, and you have to look to a spouse’s plan or the marketplace, often at very high cost."

Pine adds that age plays a major role in planning. "Older founders are typically closer to Medicare age, so they need to make sure any plan they adopt accounts for that transition," she says. "Most solopreneurs we work with either use an ACA plan or a spouse’s insurance until they turn 65."

Is your business an asset — or just a job?

Another important question is how you view your business over time. Is it something you’re building to sell or simply a source of income?

In Haas’s experience, most fall into the latter category. "Very few of these companies can be later sold for anything above assets," he says. Many are built around consulting or solo work, meaning the income stops when the founder stops working.

That makes it less of an asset and more of an income stream, something to factor into your broader retirement plan.

For those hoping to build a sellable business, more intentional planning is required, including how the business is structured.

Pine notes that this can have significant implications. "You need to be very thoughtful about entity structure," she says, "as there are meaningful tax benefits if there is significant success down the line."

The psychological trap of the founder identity

For some, the biggest challenge may not be financial, but psychological.

When you build something yourself, it can become part of your identity. That can make it harder to step away, leading to the familiar refrain: "Just one more year."

At the same time, research shows that too much unstructured time doesn’t necessarily lead to greater happiness. Many people derive a sense of purpose from being productive and contributing. That tension can keep founders working longer than they originally planned.

Still, it’s that kind of passion that can make these ventures worthwhile in the first place.

As Pine puts it, "We would only encourage someone to start a business later in life who is passionate about what they are doing. They will have a longer runway that way and enjoy their time even if it isn’t fruitful."

Chances are you’re not building the next KFC. But if your later years are about pursuing something meaningful, becoming a founder might not be such a wild idea after all.

Take it from the Colonel himself: "I just say the moral out of my life is don't quit at age 65, maybe your boat hasn't come in yet. Mine hadn't."

Read More

• Best Jobs for Retirees
• Retirees' Guide to Dos and Don’ts of Business Partnerships
• How Five Retirees Turned Their Passion into a Business
• Things that Surprise Business Owners When It’s Time to Sell

In the financial advising world, success isn't just about production. It's about people: The clients who trust you to guide them through life's biggest financial decisions.

Building strong relationships with your clients is more than just a nice-to-have; it's the secret sauce that can set you apart in a crowded industry.

One of our advisers, Dale Smothers, founder of R.D. Smothers Wealth Management in Campbellsville, Kentucky, and a Kiplinger contributor, puts it this way: "We are in the relationship business, not the sales business. If you view yourself as a relationship manager, things get a whole lot easier on the back end."

By focusing on meaningful, personalized, branded touchpoints, Smothers has created a client experience that not only strengthens relationships, but also helps his firm stand out from the competition.

Strong relationships: Your best investment

As Smothers' comment suggests, trust is everything. Clients want someone who understands their goals, values and dreams — not some impersonal investment picker who just manages their money. That's why strong relationships are the foundation of a thriving practice.

But relationships aren't just about connection — they're also about perception. Every interaction with a client is an opportunity to reinforce your brand and remind them why they chose you. From the tone of your emails to the design of your newsletters, your brand is always communicating.

Here's how great client connections and a strong brand can transform your business:

Retention and loyalty. When clients feel valued and understood, they're more likely to stick with you, even during market turbulence or life changes

Increased assets. Satisfied clients are more inclined to entrust you with additional assets as their wealth grows and their financial needs evolve

Referrals and advocacy. Happy clients spread the word. They'll refer friends and family and become vocal advocates for your services

By investing in your relationships and your brand, you build long-term success.

Strategies to 'wow' your clients

Great relationships don't just happen. They're developed through consistent, thoughtful actions that show clients you care and remind them of your unique value.

The good news? You don't need a massive budget or endless hours to make a lasting impression. Small, meaningful gestures — especially branded ones to reflect your identity — can go a long way in creating connections that clients remember and value.

Here are some strategies to help strengthen your client relationships and keep your brand top of mind:

1. Celebrate milestones. Recognize birthdays, anniversaries, retirements and other significant life events with personalized cards or small gifts. Branded touches, such as a card with your logo or a gift box featuring your firm's colors, make these moments even more memorable.

2. Send personalized newsletters. Regular newsletters tailored to your clients' interests and financial goals keep them informed and engaged. Include updates about your firm, market insights and even personal stories or staff celebrations to add a human touch.

Branded newsletters reinforce your identity with every mailing.

3. Offer educational resources. White papers, guides and other educational materials can position you as a trusted professional while providing real value to your clients.

Adding your logo and branding to these materials helps ensure your knowledge is always associated with your name.

4. Host client events. Invite clients to exclusive events, such as seminars, appreciation dinners or webinars. These gatherings foster a sense of community and provide opportunities for deeper connections.

Branded invitations and event materials can elevate the experience and leave a lasting impression.

5. Stay consistent with touchpoints. Regular communication — whether through emails, phone calls or mailings — keeps your brand in clients' thoughts and reinforces your commitment to the relationship.

The power of personalization

Smothers has seen firsthand how personalized, branded marketing can transform client relationships. His firm uses Advisors Excel's Print on Demand service to deliver customized newsletters, milestone cards and other branded materials that resonate with clients in a meaningful way.

"Clients often mention the joy of receiving something in the mail that feels relevant and heartfelt, not just another generic update," he says.

These gifting and communication efforts have also helped R.D. Smothers Wealth Management stand out in a crowded market.

Smothers notes that "the majority of prospects who come into our firm before they become clients are leaving their adviser because they feel like they're not cared about or don't have a relationship with that company."

By consistently engaging with clients in a personalized and authentic way, Smothers' team has built a loyal client base that not only stays but also advocates for the firm.

Executing these strategies doesn't have to be time-consuming, either. Services such as Print on Demand simplify the process, allowing advisers to customize and order branded materials, from guides to gifts and invites to informative events — quickly and efficiently.

Stronger bonds, stronger business

In the end, the effort you put into developing and maintaining client relationships pays off — not just in loyalty and retention, but in referrals, advocacy and long-term growth.

By focusing on personalized, consistent communication and leveraging the power of your brand, you can gain clients for life and build a practice that thrives on trust, connection and a strong identity.

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• Savvy Marketing Tips for Financial Pros From a Financial Pro

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Young professionals are increasingly building new lives and businesses overseas, drawn by the lifestyle, affordability and opportunity that foreign countries offer.

Increasing numbers of U.S. taxpayers are launching start-ups and consulting firms (paywall), opening cafés and running small tourism ventures everywhere from Mexico to Portugal and Vietnam.

But while the dream is compelling, the reality is complicated.

The U.S. is one of the few countries that taxes its citizens on worldwide income, meaning new ventures abroad are still very much entangled in the U.S. financial and legal systems.

That's where financial advisers come in. American clients living and working abroad don't just need an investment plan — they need someone who can guide them through the cross-border maze. U.S. CFP® professionals who also live and work abroad are in a unique position to support them.

Here are six of the most important ways they can do so.

1. Entity selection abroad

Forming a limited company in Portugal or registering as self-employed in Hong Kong carries major implications for U.S. taxes. Without planning, clients can end up paying far more than they need to.

Our firm, which is based in Singapore, advised a client who had set up a luxury travel company there. She had chosen a local corporate structure without U.S. input and triggered thousands in additional annual tax liability due to global intangible low-taxed income (GILTI), a U.S. tax on certain foreign earnings of American-owned companies.

We analyzed the U.S. tax consequences of her current business structure and determined the most tax-efficient way to restructure the business from a local and U.S. tax perspective.

2. Navigating retirement savings across borders

Clients are often unsure whether they can keep saving in U.S. retirement accounts when they earn money abroad. Exclusions, treaties and local pension schemes can make things complicated.

One entrepreneur we worked with in Malaysia discovered the mandatory local pension contributions to the country's Employees Provident Fund weren't recognized for U.S. tax purposes as a pension but as taxable income instead.

We helped him restructure the business income to be considered U.S.-based so he could also fund a solo 401(k) and contribute to Social Security.

3. Coordinating estate and succession planning

Many expat entrepreneurs hope to build family businesses, but estate laws abroad can derail succession plans. France, Spain, Portugal and other countries implement "forced heirship" rules that override U.S. wills.

A café owner in France assumed she could leave her shares freely to her spouse. But French law guaranteed her that her two children would receive a large share of the inheritance along with her husband. By coordinating with a local attorney and a cross-border French/U.S. tax firm, we helped her design a plan that respected both her wishes and local law.

4. Managing banking and currency risks

Entrepreneurs abroad know that juggling multiple currencies can affect profitability. Exchange-rate swings, foreign transaction fees and local banking restrictions can eat into margins.

Advisers can help clients set up multi-currency accounts, hedge currency exposure, actively manage cash and educate them to reduce friction when moving money between countries.

5. Spotting overlooked risks

Small business owners abroad face insurance, liability and social security obligations that aren't always obvious.

For example, one client who started a medical consulting firm in Singapore thought that his U.S. liability umbrella policy would cover his risks globally. Advisers can flag these exposures and connect clients with local professionals to close the gaps.

6. Not relying on a single U.S.-based adviser

The most effective model is a coordinated team: A U.S. cross-border adviser who lives and works where their clients are located, paired with local attorneys, expat accountants and specialist consultants. Your adviser back home doesn't fully understand the challenges expats face day-to-day. Things that may be simple in the U.S. become complex abroad.

We worked with an entrepreneur who initially hoped to "keep it simple" with one U.S. based adviser. But once we brought in a local expat accountant and an attorney with global specialization, the tax and legal structure fell into place, saving money and avoiding major compliance risks.

Acting as anchors for clients

Advising clients who start businesses abroad is the next frontier of financial planning.

For these clients, U.S. qualified local financial advisers are anchors, helping globally mobile entrepreneurs steady their finances, navigate competing tax systems and protect the legacies they're working to build.

The American dream is increasingly lived out across borders. Advisers who recognize that shift will guide the next wave of clients who chase opportunity abroad.

Related Content

• I'm a Cross-Border Financial Adviser: 5 Things I Wish Americans Knew About Taxes Before Moving to Portugal
• Moving Abroad? You Might Need a Cross-Border Financial Adviser
• Semi-Retiring Abroad: How to Make Your Living Overseas Dream a Reality
• How to Retire Abroad
• How to Get Dual Citizenship: Pros, Cons and Steps to Take

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In the rapidly evolving landscape of artificial intelligence (AI), businesses are increasingly integrating these tools into daily operations to boost efficiency and innovation.

From automating hiring processes to generating content and analyzing data, AI promises significant advantages.

However, when employees improperly use AI — such as by inputting sensitive data without safeguards, relying on biased outputs or failing to oversee automated decisions — companies can face substantial civil liability.

Under such principles as vicarious liability, businesses are often held accountable for employee actions within the scope of employment.

In this article, we explore key areas of exposure, drawing on recent legal developments (as of February) and offer insights for mitigation.

Discrimination and bias: The forefront of AI litigation

One of the most prominent risks arises from AI-driven discrimination, with tools perpetuating biases in hiring, promotions or evaluations.

Employees might deploy AI screening software without auditing for fairness, leading to disparate impact claims under laws such as Title VII of the Civil Rights Act, the Age Discrimination in Employment Act or the Americans with Disabilities Act.

For instance, in the landmark Mobley v. Workday case (2024-2025), a plaintiff alleged that Workday's AI hiring platform discriminated against applicants based on age, race and disability, resulting in a certified collective action for applicants age 40 and older.

Similarly, the 2025 Harper v. Sirius XM Radio lawsuit claimed AI tools used proxies such as ZIP codes to exclude Black applicants, highlighting disparate treatment and impact.

Recent settlements, such as EEOC v. iTutorGroup (resolved in 2023 but influencing 2025 cases) underscore how automated rejections of older candidates can lead to hefty penalties, including $365,000 payouts. Businesses face damages, back pay and injunctions if employees neglect bias audits.

Privacy violations: Data mishandling in AI applications

Improper AI use can breach privacy laws when employees feed personal data into unsecured tools.

This exposes companies to claims under the California Consumer Privacy Act, General Data Protection Regulation or the Fair Credit Reporting Act. A groundbreaking 2026 lawsuit against Eightfold AI alleges the company's platform compiles applicant data from sources such as LinkedIn without consent, treating it as unregulated credit reports.

Employees inputting employee or customer information into public AI chatbots risk class-action suits for invasion of privacy or data misuse, with penalties reaching millions.

Emerging regulations, such as California's 2025 Civil Rights Council rules, expand liability by defining AI vendors as agents of employers, emphasizing the need for consent and security.

Intellectual property and defamation risks

Employees generating content via AI might infringe copyrights if outputs derive from protected materials, leading to secondary liability under the Copyright Act.

Additionally, AI-produced reports or communications containing falsehoods can spark defamation claims.

For example, if an employee publishes misleading AI-generated social media posts, businesses could face compensatory damages.

Negligence, contract breaches and deceptive practices

Negligence arises when faulty AI deployment causes harm, such as erroneous financial advice or operational errors, invoking product liability for defective tools.

Breach of contract occurs if AI fails to meet client standards, while deceptive practices under the FTC Act penalize misrepresenting AI capabilities — fines and refunds ensue.

Mitigating the threats

To shield against these liabilities, businesses must implement robust AI policies:

• Mandatory training
• Bias audits
• Human oversight
• Compliance with laws such as New York City's Local Law 144 or the proposed No Robot Bosses Act (2024)

As AI litigation surges — evidenced by cases such as Eightfold and Mobley — proactive measures are essential. By fostering responsible use, companies can harness AI's potential while minimizing legal pitfalls.

In the next article, we will explore strategies companies can employ to insulate selected company assets from civil liability from unforeseen, unexpected lawsuit creditors and predators.

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• New SALT Cap Deduction: Unlock Massive Tax Savings With Non-Grantor Trusts

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Meta raised eyebrows in December when it was reported that the social-media giant would pay upwards of $2 billion to acquire Manus, a small agentic AI company out of China — an eye-popping price that many critics have since decried as an overpay.

But one man's overpay is another's opportunity, and sellers that get too caught up in valuations of their company based on comparables — rather than creativity — risk losing out on huge upsides and leave millions of dollars on the table.

The problem with comparable company analysis

The use of comparable sales to value companies as they enter the M&A market has become standard practice thanks to a market that's been built by and around financial buyers — savvy readers of the market but often also individuals that are limited in their approach to valuations.

To these financial buyers, businesses' values are summarized through a series of calculations based on assets, EBITDA, and comparable transactions — in other words, mathematical past performance instead of future integrated values.

It's a system that keeps deals flowing, but also one that rewards backwards-looking certainty over forward-looking possibility.

Rather than understanding the value of a company as being the amount a buyer is willing to pay, the value of a company is predetermined, based on what buyers have paid for similar companies in the past.

The issue with this valuation process ignores a simple truth: A business is worth different amounts to different buyers, depending on what they can do with it.

Strategic buyers routinely pay materially higher takeover premiums than financial buyers for the same kind of asset, precisely because they are underwriting synergies that will never show up in a standard multiple screen.

Sellers who don't think through those differences in advance inevitably under transact on what they have to offer.

What could your business be worth to the right buyer?

The tendency to look backward as owners position their companies for a sale is a significant part of why so many founders report walking away from their exits with a sense of regret — up to 75% in an Exit Planning Institute survey.

Even when the transaction looks successful on paper, it can soon feel like a missed opportunity for owners who have committed so much of their life, their talent and their capital to building a company.

Rather than being a practice in calculation and comparison, M&A should be a practice in creativity and strategy as sellers consider what their business could be worth in the hands of the right buyer.

It's the difference between selling an apple orchard for its value as an apple orchard where people can come and pick fruit in the fall, vs selling an apple orchard to a snack manufacturer who wants to be able to source their produce in-house.

The value of the orchard is real either way, but the assets are worth significantly more to one buyer than the other.

Valuations grounded in what businesses have historically produced assumes any additional value is speculative — which is often not the approach buyers have in coming to the market.

Buyers who consistently capture post-acquisition upside invest time and resources in understanding how an asset could be repurposed, scaled or embedded in a larger system.

Comparables and EBITDA may not say that Manus is worth $2 billion today, but in the context of Meta's race to dominate AI, it may well be.

Reframing the valuation process

Whether it's because of what they offer in a given technology, geography, or service niche, companies are regularly able to outperform what comparables say they should fetch by approaching the market with a more strategic approach.

To the right buyer, a chemical manufacturer in the right geography can sell for 100% more than even its owners expect.

Instead of asking, "What is my business worth?" owners should ask, "Who should own this business next and why would it be worth more in their hands than in mine?"

That question reframes the entire process. It forces a deeper examination of the company's underlying capabilities rather than just its current outputs.

Answering it requires stepping outside the role of operator and thinking like a strategic acquirer.

• What capabilities does the business have that could be amplified inside a larger platform?
• What customer relationships, processes or intellectual assets could unlock new revenue streams elsewhere?
• What constraints disappear when the business is no longer standalone?

The irony is that this approach often leads to better outcomes for both sides. Sellers capture more of the value they created. Buyers enter the deal with clearer expectations and a more realistic path to execution.

Fewer assumptions are left unstated. Fewer opportunities are discovered only after closing.

Businesses inevitably change hands. But whether the exit rewards the seller who built the asset or the buyer who recognizes its utility depends on who does the strategic work first.

The owners who come out ahead are the ones who start early, get clear on how their company could be worth more to the right buyer than it is to them, and assemble the team to turn that insight into leverage.

That's how owners walk away with a deal that reflects the full value of their business — not just the market they happened to sell into.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Famed investor Michael Burry is once again raising the alarm about an AI bubble, as return on invested capital slows and OpenAI declares a "code red" amid increased competition.

But the market bubble is only one side of the story. A bubble of equal size — and perhaps greater concern — is forming around AI "adoption," as board-facing messaging becomes increasingly detached from the realities of corporate AI implementation.

The growing market bubble around tech companies has long been a concern for investors and analysts, who see striking parallels between the valuations of today's AI companies and those of companies that were breaking records when the dot-com bubble burst.

But this emphasis on market prices has the corporate world ignoring the expectations bubble that's been growing right under their noses.

Fear of missing out (FOMO) and market-led urgency have businesses jumping at opportunities to show investors that they've adopted AI into their business operations. According to McKinsey, 88% of business leaders in 2025 reported regularly using AI in at least one business function — up from 78% the year prior.

While AI devotees see these numbers as evidence that AI is living up to its potential and transforming the economy, a deeper dive into the figures paints an alarming picture.

McKinsey identifies just 6% as "high performers" — those seeing 5% or more of earnings before interest and taxes (EBIT) attributable to AI. Meanwhile, only 39% of respondents report any enterprise-level EBIT impact from AI, with most of those seeing less than 5%.

Even for those only watching the market bubble, that should be a concern. Capital is being priced right now as if companies are seeing gains from their AI use. If companies fail to turn AI into an additive venture, that reality will eventually hit the market.

Yesterday's data weakness, today's AI failure

The biggest problem in the AI market right now is that AI actually is as powerful as it promises to be. An effectively trained AI can (and will) transform the operations of a well-prepared business.

The issue is that most businesses aren't prepared.

While AI scores highly on the factors that make it an adoptable technology (relative advantage, observability and trialability), it scores weakly on the remaining two factors: Compatibility and complexity.

Actually building effective AI into workflows requires vast amounts of training, discipline and data that most companies simply don't have — because most companies have failed to adopt AI's precursor technologies.

For many businesses, cloud computing has been a failure. Regardless of the size or sophistication of a business's enterprise resource planning (ERP) or customer relationship management (CRM) systems, most companies never develop the discipline to ensure data consistency.

What's driving the AI implementation bubble is that those same companies are now trying to bolt AI onto an unstable foundation. And AI, unlike many past technologies, is unforgiving.

An ERP can limp along with messy data because humans are there to compensate; AI only scales the mess. Bad inputs don't just create bad reports — they create automated answers that move faster than people can catch.

The 'pilot' paradox

The AI implementation bubble is a result of this confluence of factors: FOMO driving leadership behavior, AI's seeming "adoptability" and underlying data immaturity at an organizational scale.

The race to adopt AI has led boards to be distracted by activity metrics, like the number of AI pilot programs a company is running. The problem with these quantitative metrics is that they don't actually say much.

It's like a restaurant bragging about the number of ovens they have. Unless the restaurant can also report the number of chefs they have, the quality of their ingredients and the menu, knowing the number of ovens doesn't actually say much about their ability to cater a dinner.

More critical than simply running pilots is knowing which pilots are actually ready to scale. The unfortunate answer for most businesses is that most aren't.

The majority of AI pilots fail to progress to enterprise-scale deployment — not because AI as a technology isn't ready, but because the companies running them aren't ready for AI.

The AI bubble that's forming is fundamentally an expectations bubble, as companies fail to meet AI's full potential. When this bubble bursts, the winners and losers will not be determined by who ran the most pilots, but by who has the right culture.

As urgent as the race to adopt AI feels, without the proper data infrastructure, process flexibility and AI literacy, companies cannot even begin to compete.

The difference between those who see value in AI and those who do not comes down to the idea of readiness and culture. It's not a matter of finding some novel use for AI, but of data discipline.

Companies with clean, structured data and the discipline and flexibility to adopt AI into their processes are the ones maximizing their returns.

One effective, scalable pilot with measurable outcomes is more valuable than a dozen scrapped test cases. Even when models don't behave as expected, digging in and diagnosing what's not working can help companies implement critical changes organization-wide.

The AI bubble isn't about the technology living up to the hype. AI is ready. It's the companies that need work.

The winners won't be the companies with the most pilots. They'll be the ones who built the foundations that make AI worth implementing at all.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

"Begin at the beginning," to quote the King of Hearts from Alice in Wonderland. That's how most people approach business ownership, and on its face, it seems like a smart strategy.

We all know the sobering statistics on entrepreneurship: According to the U.S. Bureau of Labor Statistics, about 21% of businesses fail in the first year, nearly 50% fail by year five, and about 65% fail within 10 years.

So to avoid becoming a statistic, most entrepreneurs focus primarily on the first five years (launching their business, securing funding, building operationally and scaling). But it would be a mistake not to also think about preparing for a potential exit.

What is your exit? Do you plan to sell the business, pass it to a family member, partner or employee or dissolve it?

While you might not readily know the answers to these questions, by following the five best practices below, you can both build your business and put yourself on stronger footing when the time comes to begin your next act.

1. Keep your financials clean and transparent

Often, business owners are good at what they do but need help on the financial side of running a company. If you want to eventually sell or transition your business, you will want to make sure everything is above board.

It is important to have a trusted executive — whether that's a CEO, CFO, outside accounting firm or even a fractional CFO — who can guide you in the day-to-day bookkeeping of your business, making sure you have proper cash flow and the right people in place.

Clean and transparent financials are critical to maximizing valuations. Unfortunately, I have worked with business owners who were not focused enough on the operations and finance side of their businesses and eventually found that employees were embezzling funds.

If you do not have a strong background in business accounting, make sure you bring on trusted, experienced people early who can set you up for success and keep it running smoothly as you grow.

2. Make sure the legal structure is aligned with your goals

When setting up a company, you can structure it as an LLC, C corp or S corp. There are different tax advantages to how you structure your business.

For example, if you are registered as an S corp through an LLC, you can give yourself a salary through the company and set up a solo 401(k) to maximize tax advantaged retirement savings.

You can also structure the company to support your retirement goals in additional ways.

For example, if you set your business up as an LLC, you can take out a private-placement life insurance policy through the business, which will allow you to protect and grow your assets tax-free.

3. Know when to scale your business

A business cannot rely solely on the person who founded it. Make sure you are creating a repeatable business model, which will add value to your eventual selling price.

For obvious reasons, very few buyers are interested in purchasing a business that will stop functioning if you no longer work there (unless they are buying your clients or buying you to stop you competing with them).

Therefore, to maximize valuation, you need to put in place the team and processes that allow the business to effectively function without you.

4. Protect yourself

Hire an attorney to help you on the planning side, but also with setting up trusts, taking out insurance, filing patents and all other important legal matters.

Where applicable, legally controlling and protecting the intellectual property of your business may also directly increase the value of the company.

5. Begin thinking of your long-term plans

Beyond your five-year growth plan, think about 10, 20 or 30 years down the road. Do you want to cash out completely or make a partial sale? Do you envision yourself working part-time in retirement or being fully retired?

Of course, your answers may change over time, and that is okay. Financial planning provides a road map and should never be set in stone.

By working with a financial adviser, you can create a strategy while also adjusting if your goals change over time.

Entrepreneurship is about being in control of your own life. When you are building a business, think about the full lifecycle — launch, scaling and eventual exit.

If you "begin at the beginning" but also think about where you want to land, you will be creating a road map to achieve not just your business goals but your vision for your life.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In these transactions, the rights and remedies available to shareholders in the minority vote vary widely across jurisdictions, shaped by each state's statutory framework and judicial interpretation.

In general, these protections may include the ability to dissent from the transaction, seek payment of the fair value of their shares and challenge the sale in cases involving fraud, self-dealing or other unfair conduct.

Many states provide some form of appraisal or dissenters' rights, though the scope, procedures and available remedies differ significantly.

For example, Florida law allows shareholders in the minority vote to demand the fair value of their shares to be paid to them based upon an appraisal determined as of the date before the objectionable action took effect. That value is often calculated using standard business valuation methods.

Shareholders in the minority vote should take the following initial steps to preserve their appraisal rights.

1. Review the relevant statutes

As the philosopher Francis Bacon famously said, "Knowledge is power." Understanding the law is the first step in protecting an investment. Even if a shareholder has no legal training, they should review the relevant statutes in their state that govern dissent and appraisal rights to understand both their rights and how to protect them should they choose to dissent from the action.

Familiarity with the law not only reveals where rights are being overlooked but also strengthens the shareholder's position when working with an attorney or engaging with the corporation.

2. Submit a timely written dissent

In most jurisdictions, a shareholder in the minority vote who wishes to dissent from a majority-approved sale of substantially all corporate assets must submit a timely written objection and follow the statutory procedures to preserve any right to seek the fair value of their shares.

For example, Florida statutes require the corporation to obtain the approval of its shareholders to sell all or substantially all of its property, and it must give notice to every shareholder of the meeting at which the disposition is to be submitted for approval, even those who are not entitled to vote. To preserve appraisal rights, a shareholder must not vote in favor of the transaction and must submit a timely written dissent in accordance with the applicable statutes.

Sometimes, statutes do not give a specific format for the dissent, but they consistently require that it be submitted in writing. If the statute or the corporate governing documents are silent, a good rule of thumb is to track the language of the relevant statute relating to notice of intent to demand payment or similar language.

The dissent should also strictly follow the procedures required and rights afforded by the corporation's governing documents, such as the bylaws or shareholder's agreement, which may have relevant information regarding dissent rights.

After the vote is effected wherein the proposed sale of substantially all the assets of the corporation has been approved and the shareholders in the minority vote have given their notice of dissent, the corporation must deliver a written appraisal notice to the dissenting shareholders.

If the corporation fails to do so, the dissenting shareholders should consult with a business lawyer experienced in working with closely held corporations to ascertain their rights. Legal counsel can help enforce the shareholders' rights.

3. Request key corporate records

If the corporation fails to deliver the appraisal notice or the shareholder disagrees with the corporation's assessment of the fair value of their shares, the shareholder may make a statutory demand for access to certain financial records from the corporation.

These documents assist a business valuator to perform an appraisal of the corporation, assess the company's true worth and, thereby, the fair value of the shareholder's ownership interest.

For example, Florida law recognizes a shareholder's right to inspect certain records. Under the state's statute, corporations must maintain basic records that shareholders are entitled to review.

In addition, the rule gives shareholders the right to inspect additional records, such as accounting documents, if the request is made in good faith, with specificity, and for a proper purpose related to their rights.

If the corporation refuses to comply, shareholders should consult with a business attorney who can enforce their statutory rights and, if necessary, seek court intervention to obtain the records.

Following these steps can strengthen a shareholder's ability to assert their dissent rights and to receive the fair value of their shares.

Lan Kennedy-Davis is a partner at RumbergerKirk with a diverse practice that spans corporate transactions, general and complex business litigation and family law.

Sandra Ferrin, special counsel at RumbergerKirk, provides legal representation to corporate clients and individuals in shareholder and partnership disputes, breach of contract, breach of fiduciary duty and business torts.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

I love my job. As part of Vanguard's Financial Advisor Services team, I meet with financial advisers across the country to discuss their fast-growing technology stacks and determine how they can use AI to deliver better investment outcomes to their clients in a responsible way.

Our advice is to always focus on improving outcomes for investors, and that may mean using AI to help free up time that can be dedicated to supporting clients. Vanguard research shows the real benefit for clients lies in behavioral coaching.

But for advisers to use AI in ways that truly lead to better outcomes, they need to understand and trust it. In our 100-plus meetings with advisers in 2025 alone, these are their most common AI-related questions.

How can I get started using AI?

As you get started using AI, consider your north star. If you haven't developed a north star — what you want to accomplish with AI — you should. The north star should be established at the C-suite level, be mission-aligned and include a governance framework.

Vanguard's north star, for example, is to use AI to deliver better investor outcomes in a responsible way.

At the more tactical level, advisers who are newer to AI adoption are looking for quick, practical productivity wins. For advisers, the easiest wins involve using AI to support client interactions, summarize information and draft everyday content.

Every step of a client touchpoint can, and should, be enhanced with AI:

• Before a meeting, a GenAI application can create prep materials summarizing email activity and previous engagements logged in your customer relationship management (CRM) system
• During the meeting, AI can transcribe and take notes, allowing you to be more engaged
• After the meeting, AI can create customized follow-ups to keep the conversation going

As you continue using AI to help with client engagements, it will learn from your feedback and build its database of client communications, providing stronger drafts in the future.

Between client meetings, advisers spend much of their time reading and analyzing complex documentation — market perspectives, forecasts, economic news and policies, and so on.

At Vanguard, we leverage GenAI tools to summarize our market updates and perspectives to help advisers create personalized insights for clients based on their financial acumen, allowing advisers to more quickly get actionable information in their clients' hands.

Speed is of the essence when building trust with clients, and AI can help.

How can I build a data foundation that maximizes my AI tools?

You may have heard the phrase "garbage in, garbage out." Your AI tools are only as good as the data you have. In our conversations, many advisers have expressed that inconsistent data is a top constraint on AI value.

Beyond simple data collection from a CRM system or related tool, data classification and architecture are critical components to any enterprise AI strategy.

As advisers collect data for an AI tool to leverage, classification is critical. Advisers must ensure they have a system that designates access levels for all information, from simple emails to personal client data.

Most companies have established policies to designate data as being confidential, public and in-between. Those companies must ensure their AI tools — and their team members — understand and adhere to them.

For larger firms, investing in data engineers can be a great first step to create accountability in data classification and metadata development. By cleanly organizing data, AI tools can work more efficiently.

How do I find the right vendors?

When sourcing vendors, your north star and current tech stack and data infrastructure must be considered. Vendors that can stitch together existing tools such as CRM platforms, email platforms, content repositories and more can help avoid some of the "swivel chair" work that comes from platforms not being truly integrated.

Enterprise data privacy is a critical safeguard. It ensures your data remains within your organization's boundaries. Your vendor's technology must clearly distinguish what data it can and cannot use, preventing any information from being fed back into the LLM during employee interactions.

While most providers claim to offer this protection, we recommend validating it through a pilot period.

We also recommend that companies have multiple lines of "human-in-the-loop" governance reviews with quality control checks before any AI use case is made widely available. This can address potential hallucinations or biases and ensure any generated content is compliance-approved and aligned with your brand.

Even after these checkpoints, employees should still be trained on responsible use cases with any new tool.

What's next with AI?

When discussing AI adoption with advisers, I tend to define adoption in three stages, or the three As: assist, augment, and action. The industry is well into the "assist" stage, as advisers are already using algorithmic models to estimate Social Security income and health care costs in retirement.

In the near future, we are likely to see GenAI take these tools to the next level, supporting advisers with portfolio health checks, analysis and recommendations, moving us into the "augment" stage.

Further out, we will enter the "action" stage, where AI will move beyond helping to taking actions on the adviser's behalf. Advisory firms will leverage AI agents to execute tasks such as portfolio monitoring, rebalancing and routine client service, allowing advisers to focus fully on strategic planning and relationship building with their clients.

From quick productivity wins to building a robust data foundation and selecting the right partners, success with AI starts with clarity of purpose and responsible governance.

Advisers who embrace these principles will not only streamline operations but also free up time for what matters most: Guiding clients through complex financial decisions with confidence and care.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Picture this scenario: You're standing at the front of a steakhouse private room, halfway through your presentation. In the crowd, several attendees are nodding along and taking notes — proof that dinner seminars can be a great way to connect with potential clients. Still, you can't help but also notice a few guests focused more on the ribeye than the retirement strategies you're sharing.

For financial professionals, this experience is familiar. Dinner seminars have long been a reliable way to attract new clients.

But as marketing costs rise and consumer skepticism grows, some advisers find that seminars often attract people who are there for the free meal rather than for genuine financial advice.

Is there a better way? Can you stop chasing cold leads and start attracting high-quality prospects who actually share your values?

The answer may lie in a fundamental shift: Moving from transactional marketing to relationship-based referral marketing.

It's a strategy that could transform your entire practice, as demonstrated by Cramer & Rauchegger, a firm based in Maitland, Florida.

The high cost of cold marketing

Before finding a sustainable path, Scott Cramer and Tom Rauchegger, the founders of the firm, faced the same grind many advisers experience today. Their calendar was packed with three seminars every eight days. They were churning through venue rentals, direct-mail campaigns and catering bills.

While they were generating appointments, the cost of acquisition was steep — both financially and emotionally. They realized they were inviting the public and hoping to find qualified prospects. It was an expensive game of chance.

This is a critical reminder for any financial professional that prioritizing volume over value can be exhausting and inefficient. The key is to stop asking, "How do I get more bodies in the room?" and start asking, "How do I get the right bodies in the room?"

The psychology of referrals

The shift to a referral-only model isn't just about saving money; it's about leveraging trust.

When a prospect comes from a cold channel, you build trust from ground zero. With referrals, they borrow trust from the referrer.

During their transition, Cramer and Rauchegger discovered research suggesting that the conversion rate for qualified referrals hovers around 90%. This aligns with the famous business axiom: "All things being equal, people will do business with a friend; all things being unequal, people will still do business with a friend."

To make this shift work, you must change your mindset. Existing clients aren't just accounts; they're your advocates and most effective sales force.

Strategy No. 1: The honest conversation

One of the hardest hurdles for advisers is the fear of asking for help. However, transparency is a powerful tool. When Cramer and Rauchegger pivoted, they called a "town hall" meeting with their top clients — the 50 to 60 households they enjoyed working with the most.

They were honest about the changes, explaining that they wanted to focus entirely on serving their existing families better. They asked for help in building a community of like-minded people.

Key takeaway: Don't be afraid to tell your top clients that you want to clone them. Explain that you do your best work for people just like them and that you want to build your business around those shared values.

Strategy No. 2: Reframing the 'ask'

Many advisers struggle with referrals because it feels like begging: "Please give me a name so I can grow my business."

The approach needs to be reframed around value. The goal isn't to get a favor from the client; it is to provide such exceptional service that the client wants to share a name.

Cramer puts it this way: "We don't want you to refer us because you think you're helping us. We want to do such a good job for you that you're excited to refer us."

When you frame referrals as a benefit to the client's friends and family — ensuring their loved ones are taken care of by someone they trust — it removes the awkwardness. It transforms the referral from a transaction into an act of care.

Strategy No. 3: The 'gala' approach

If you're looking to complement or diversify your marketing beyond traditional dinner seminars, consider where your event budget can have the most impact.

You reinvest it in your clients. Instead of public seminars, consider hosting "Appreciation Galas" or social events where admission is simple: The client brings a guest.

• Educational events. In some months, host dinners with presentations on your services or market updates to emphasize your professional experience.
• Social events. In other months, host social gatherings that help build relationships.

This creates a natural, low-pressure environment. The guests (referrals) get to meet you, but more importantly, they get to meet your other happy clients. The social proof in the room does the selling for you.

The ROI of relationships

The results of this strategy speak for themselves. In the case of Cramer & Rauchegger, the firm trimmed its marketing budget, spending only 0.2% of its assets under management on client acquisition.

But the return on investment wasn't just financial; it was cultural, too.

Benefits of a referral-only model:

• Higher closing ratios. With a 90% conversion rate, you spend less time selling and more time advising.
• Natural filtering. Clients tend to hang out with people who share their socioeconomic status and values. This means prospects are likely to be as pleasant to work with as your best existing clients.
• Enjoyable work environment. As Rauchegger noted, events become celebrations rather than awkward networking sessions, allowing you to spend time with people you like.

Conclusion

Transitioning to a referral-based practice requires courage. But if you can execute this pivot — fostering true partnerships, communicating with transparency and reinvesting in your advocates — you won't just build a more profitable business; you will build a business that gives you the freedom to enjoy your success.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Our firm is not affiliated with the U.S. government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 5154512 – 1/26

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For many entrepreneurs and family business owners, selling a company represents the culmination of decades of effort.

What often begins as a single idea grows into a highly concentrated asset that defines both net worth and personal identity. When the business is sold, that concentration turns into liquidity, creating both opportunities and risks.

The challenge is not simply negotiating a strong price. Taxes, timing, family dynamics and life after ownership all converge in one defining moment. Without thoughtful preparation, even a successful sale can leave owners feeling uncertain about what comes next.

With early planning, the transition can become a potential foundation for long-term security and a meaningful legacy.

The sale is both a financial event and a personal one

Most owners approach a sale focused on valuation, deal terms and market conditions. Those details matter, but they tell only part of the story. Selling a business also brings emotional weight.

Many founders wrestle with identity loss, fear of regret if they exit too early or worry about how sudden wealth will affect their children.

Financial complexity compounds these concerns. An illiquid, tax-efficient business must be converted into a personal balance sheet designed to support spending, investing and family goals for decades.

Decisions made under pressure can lead to unnecessary taxes, misaligned investments or strained relationships.

Recognizing that a sale is both a financial and personal transition reframes the process. The focus shifts from simply closing a deal to shaping what comes next.

Build the plan before the buyer shows up

The most effective planning happens well before negotiations begin. Ideally, owners start preparing two to five years ahead of a potential sale. This window provides flexibility, which is often the greatest advantage an owner has.

Early preparation typically includes:

• Clarifying personal financial readiness, including post-sale lifestyle needs, long-term spending and financial independence targets
• Modeling multiple valuation scenarios to understand how different outcomes affect future plans
• Reducing reliance on a single asset, so personal finances are not entirely dependent on deal timing or price
• Coordinating advisers early, including attorneys, accountants, bankers, valuation specialists and investment professionals

When these elements are aligned in advance, owners are more prepared to enter negotiations with confidence and clarity. Once a letter of intent (LOI) is signed, options narrow quickly. Ownership transfers become difficult, valuations become fixed and decisions are often rushed.

Early planning helps to position the sale to serve broader goals, rather than dictating them.

Reduce taxes while options still exist

Taxes are often the largest expense associated with selling a business, yet they're also among the most manageable with proper timing.

Advanced planning allows owners to evaluate and implement strategies that might no longer be available once a deal is underway.

Common areas of focus include:

• Entity restructuring or installment planning to improve after-tax outcomes
• Capital gains exposure and state tax considerations
• Verification and optimization of qualified small business stock eligibility
• Gifting shares to irrevocable trusts before a sale to remove future appreciation from the taxable estate
• Charitable strategies such as donor-advised funds or charitable remainder trusts

Many of these strategies must be implemented before an LOI is signed. Waiting too long might eliminate potential tax benefits.

Frequent missteps include: assuming qualified small business stock (QSBS) eligibility without proper analysis; overlooking depreciation recapture or employment taxes; and committing too much capital to charitable vehicles without preserving personal liquidity.

While taxes can't be avoided entirely, early planning can significantly reduce avoidable costs and create greater certainty around net proceeds.

From concentrated business wealth to long-term security

Selling a business often marks the first time an owner transitions from concentrated equity into liquid wealth.

That shift can be disorienting, particularly for founders who are deeply familiar with their industry but less experienced managing diversified portfolios.

A thoughtful transition plan focuses on aligning new liquidity with long-term goals while managing risk. Rather than investing proceeds all at once, many owners benefit from a phased approach that balances market exposure, taxes and cash-flow needs during the initial post-sale period.

The first year after liquidity is especially vulnerable. Common mistakes include:

• Investing too aggressively or remaining overly conservative
• Committing to informal or relationship-driven investment opportunities
• Neglecting cash-flow planning
• Failing to update estate documents and insurance coverage

A disciplined framework grounded in goals and realistic risk capacity helps new wealth feel stable and purposeful, rather than overwhelming.

Protect the family and preserve the legacy

For many first-generation wealth creators, the most important question is not how much wealth is created, but what that wealth will mean for their families. Concerns about entitlement, conflict and the erosion of core values are common.

Effective legacy planning emphasizes structure as much as assets. Multigenerational trusts, asset protection strategies, insurance planning and clearly defined distribution guidelines can help protect heirs while encouraging independence and responsibility.

Governance frameworks and open family conversations further clarify expectations around control, privacy and long-term purpose.

The difference between early and late planning is often significant. Owners who prepare well in advance can reduce taxes, align family members and transition into the next chapter with clarity.

Those who wait until a deal is underway frequently face higher taxes and avoidable family strain.

The most valuable advice for any owner considering a sale is straightforward: Start sooner than you think is needed. Aligning tax strategy, estate planning, family priorities and investment decisions before a buyer enters the picture creates flexibility and confidence.

More important, it increases the likelihood that the wealth created will support both financial security and a lasting legacy for generations to come.

Related Content

• How to Sell Your Business With No Regrets
• Selling Your Business? This Powerful Insurance Option Unlocks Multigenerational Wealth
• To Buck the Third-Generation Curse, Focus on the Family Story
• Financial Planning Tips for Business Owners Raising Kids
• Opportunities and Challenges When You Inherit an IRA

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As 2026 gets underway, individuals and qualifying businesses should be reassessing several tax adjustments already in motion, and refining strategies to ensure they’re positioned as efficiently as possible for the years ahead.

Advisers know there’s rarely a “quiet” moment when it comes to tax planning, but the transition into 2026 is proving especially consequential.

With key provisions of the One Big Beautiful Bill Act (OBBBA) now effective and others phasing in, advisers should be helping clients recalibrate their tax strategies in light of a meaningfully altered landscape.

1. Itemized deductions

One of the most impactful changes involves itemized deductions, particularly for high-net-worth and ultra-high-net-worth taxpayers.

Under the OBBBA, itemized deductions are now capped at a tax benefit of 35 cents per dollar for those in the top tax bracket, down from as much as 37 cents previously.

While the difference may seem modest, it can materially affect the after-tax value of deductions at higher income levels.

For many taxpayers, this underscores the importance of timing. Advisers should be reviewing whether clients appropriately accelerated and “bunched” deductions ahead of the change and, if not, how to best optimize deductions going forward under the new limitations.

2. Charitable giving

Charitable giving has also entered a new phase. As of 2026, taxpayers can only realize a tax benefit for charitable contributions to the extent they exceed 0.05% of adjusted gross income (AGI).

While this threshold applies universally, the impact is naturally magnified for higher earners. Compounding the effect, the itemized deduction cap further reduces the ultimate tax value of charitable gifts.

These changes reinforce the continued relevance of donor-advised funds (DAFs). For clients who established DAFs before the end of 2025, the ability to front-load contributions preserved deductions under more favorable rules.

Going forward, DAFs remain a powerful planning tool, allowing investors to support charitable causes on a flexible timeline while enabling assets to grow tax-efficiently before distribution.

3. Renewable energy and solar tax credits

Another area where timing proved critical, and where advisers should confirm execution, is renewable energy and solar tax credits. Many of these incentives ended at the end of 2025 under the OBBBA.

Clients who completed qualifying energy-efficient projects before year-end may now be realizing meaningful tax savings, while those who delayed may find those opportunities closed.

Reviewing eligibility and documentation is an important step early in the 2026 tax cycle.

4. Qualified small business stock

Beyond individual taxpayers, the OBBBA introduced several notable changes for entrepreneurs and business owners, particularly around qualified small business stock (QSBS).

The enhanced $15 million exclusion is now paired with shorter holding periods, allowing for a 50% exclusion after three years, 75% after four years and full exclusion at five years.

This revised structure makes C-corporation formation more attractive for certain founders, especially in fast-growth sectors where liquidity events may occur on an accelerated timeline.

For private equity-backed businesses and early-stage companies eyeing strategic exits, QSBS planning is becoming an increasingly central part of entity-structure discussions.

5. Opportunity zones

Opportunity zones are another area gaining renewed attention as 2026 unfolds. While existing designations sunset at the end of the year, new opportunity zones will take effect beginning January 1, 2027, and the program itself has been made permanent.

For investors anticipating significant capital gains, this creates a rolling planning opportunity.

By reinvesting eligible gains into a qualified opportunity fund (QOF) within 180 days, investors can defer taxes for up to five years.

More importantly, gains on investments held in a QOF for at least 10 years remain permanently excluded from federal capital gains taxes — an especially compelling benefit for long-term investors.

Proactive planning and open communication

Whether the focus is on adjustments already in effect or longer-term strategies that extend well beyond 2026, one theme remains constant: Proactive planning matters.

The most effective tax strategies are the product of ongoing dialogue between advisers and clients, not last-minute decisions made under pressure.

As the OBBBA reshapes key areas of the tax code, staying engaged, revisiting assumptions and implementing thoughtful mitigation strategies can make a meaningful difference.

In an environment defined by complexity and change, maintaining open lines of communication may be one of the most valuable planning tools advisers can offer.

Related Content

• What Changed on January 1: Check Out These Opportunities Created by the New Tax Law
• Are Roth Conversions for Retirees Dead in 2026 Because of the New Tax Law?
• How Will the One Big Beautiful Bill Shape Your Legacy?
• How the One Big Beautiful Bill Will Change Charitable Giving
• 2026 Marks a Seismic Shift in Tax Rules, and Investors Could Reap Millions in Rewards

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Retirement looks very different when you're a business owner rather than an employee. For employees, retirement is a clear line in the sand: One day you're working, the next day you're not.

But for owners, stepping away can feel like deserting the cause, abandoning the team or even losing part of your identity.

That's why exit planning is not just about money — it's about meaning, legacy and risk management. You need a plan, and you likely need advisers to help with the plan. Just make sure they don't exit their business before you do.

Defining retirement

When you retire as a business owner, you may feel you're walking away from something you built, nurtured and sacrificed for. And the money angle can be challenging as well.

A positive is that business owners can choose to keep some or all of their equity, stay on in an advisory role or phase out gradually. Retirement doesn't have to mean disappearing overnight. But that also gives it a layer of complexity.

For many owners, the subliminal meaning behind the question "When will I retire?" is "When will I become insignificant?" That's a hard feeling to accept, but it underscores why planning matters.

Retirement isn't just about leaving — it's about ensuring your business continues to thrive without you, and you continue to thrive without your business.

Positioning retirement in financial terms

You've spent a lifetime paying in — through business capital, 401(k) contributions, Social Security and reinvested profits. Retirement is the moment you shift from accumulation to decumulation. You're not paying in — your business is paying out.

The payout can come in two forms: Income and capital. On the income side, at some point, you'll start drawing Social Security and tapping retirement accounts.

It gets more complicated when business equity is part of your decumulation strategy. If your equity is tied up in the company, you'll need a plan to convert that capital into retirement income.

And positioning for decumulation takes time. You don't want to risk being forced into a rushed or undervalued exit. Without this kind of planning, you may find yourself asset-rich but cash-poor and unable to fund the retirement lifestyle you've envisioned.

Another financial issue is that a business owner's retirement income plans often conflict with their legacy plans. Every retiree wrestles with questions of legacy, but for business owners — especially those with family businesses — the stakes are higher.

Whether by sale or gift, passing the business to children or relatives can create tension. Some may want to continue your legacy, while others may not.

Further, your business may be a cornerstone of the local economy. Walking away can feel like letting down employees, customers or the community.

Your exit plan will need to factor in how to hand off and continue the culture and spirit of the company without you at the helm. This transition often includes financial investments and commitments that will ensure the continuation of the business.

Vendors will need to be informed and comforted, creditors will want reassurance, and staff need to be motivated to carry on.

Derisking your retirement

Retirement should be about security, not uncertainty. It's admirable to be a risk-taker in business, but it's folly to be a risk-taker with a retirement plan. Derisking means reducing exposure to financial, operational and personal risks.

• Financial risk. With retirement coming your way, you should diversify assets so you're not overly dependent on the business.
• Operational risk. You can maximize the value you receive from your business by ensuring that the company can run without you. Rather than running the business down to minimize expenses, it may be more profitable to take steps to secure strong management, create up-to-date systems and formally install succession planning.
• Personal risk. Retirement is more than an event — it's a journey. Protect your health, nurture your relationships (particularly at home) and create peace of mind by planning for a smooth transition.

The professional advice challenge

As a business owner, you may have two advisory teams: One that works with your business and one that works with your personal and family accounts. When you exit your business, who will you look to for advice?

Some of your retirement income may still be coming from your business transactions, but much of your capital may be moving from business equity to personal investments. How will you transition into a new, coordinated team?

Here's another twist. Retirees are often frustrated with losing trusted professionals just when they need them most. You retire and then find that your doctor, dentist, accountant or lawyer retires at a similar time.

If you're a business owner who is planning to retire soon, you can't afford to have your advisers check out when you do.

A key requirement should be that your business and personal advisers have their own exit plans. Do they have a bench of staff who can work with you if your trusted adviser retires? Have you met these successor advisers?

Practical steps toward your exit

Open up to others about your plans. Decide whether you'll keep, sell, retire, phase out or stay involved with your business. Communicate these intentions with family, partners and advisers.

Get a professional business valuation to understand what your company is worth. This is essential for sale negotiations, estate planning and retirement projections. It's also a reality check to make sure your retirement strategy will work.

Examine your business structure (LLC, corporation, partnership) to ensure it aligns with your exit goals and tax strategy. An entity change may be in order a few years before retirement to help facilitate a transfer to others.

Create an exit plan. Develop a clear road map for how ownership will transfer — whether through sale, succession or liquidation.

Integrate your business exit plan into your broader retirement strategy, ensuring income streams are secure and you have a way to convert a key asset that is likely illiquid and undiversified (i.e., your business) into a source of retirement income.

And finally, align everything with your estate plan to protect heirs, minimize taxes and preserve your legacy.

Exit planning is about ensuring continuity, protecting wealth and honoring legacy. The question isn't simply "When will you retire?" but "What will happen to your business, your family and your future when you do?"

Done right, exit planning transforms retirement from a question of insignificance into a chapter of meaning, where your business, your wealth and your legacy continue to thrive.

Related Content

• Strategies for Business Owners Afraid of Succession Planning
• Ready to Retire? Your Five-Year Business Exit Strategy
• For Business Owners, Estate and Exit Planning Join Forces
• 5 Tax-Smart Charitable Giving Strategies for Retirees
• Early Retirement: How To Protect Your Hidden Retirement Asset

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The regulatory landscape for retirement investing shifted dramatically last August. A signed executive order opened the door for alternative assets — including cryptocurrency — to enter 401(k) plans.

For advisers, this creates both opportunity and obligation: Clients will ask about crypto, and you need a clear framework for responding.

What changed (and what didn't)

This change doesn't mandate that plans adopt cryptocurrency. Rather, it compels regulators at the Department of Labor, SEC and Treasury to revisit previous guidance that discouraged digital assets in retirement accounts.

Previously, the DOL issued guidance suggesting plan administrators exercise "extreme care" before adding cryptocurrency options, effectively discouraging adoption without outright prohibition. The August order rescinded these "extreme care" warnings, restoring a more neutral regulatory stance.

The absence of restrictive guidance doesn't mean the absence of fiduciary responsibility. Plan sponsors and advisers still must demonstrate prudent processes, ongoing monitoring and appropriate risk management.

The practical effect is that crypto in 401(k)s has moved from "highly discouraged" to "proceed carefully with proper safeguards."

New rulemaking expected early this year should provide clearer parameters on key issues such as tax concerns and digital assets permitted within retirement strategies, but advisers working with clients interested in this space need frameworks now to address uncertainties.

The client perspective: Benefits and risks

If you haven't already, you may begin hearing from clients who are curious about adding crypto to their retirement plan. Clients considering adding crypto to their account need balanced information about both the potential benefits and risks.

Here's a look at some of the potential benefits:

Diversification beyond traditional assets. Crypto behaves differently from stocks and bonds, potentially providing portfolio diversification benefits during certain market conditions.

Exposure to digital asset growth. Clients who believe in long-term blockchain adoption gain access to this emerging asset class within their retirement savings.

Access to broader alternative investments. The regulatory shift applies not just to crypto but potentially to private equity, real estate, infrastructure and other alternative assets previously difficult to include in 401(k) plans.

Despite these benefits, significant risks exist that demand clear communication:

Extreme volatility. Crypto prices can swing dramatically in short periods, creating substantial account value fluctuations that many retirement savers aren't prepared to handle.

Valuation and liquidity challenges. Unlike publicly traded securities with daily pricing, some crypto holdings lack consistent valuation methodologies and may not be easily redeemable.

Regulatory uncertainty. Rules continue to evolve, potentially affecting the tax treatment, custody requirements and permissibility of various digital assets.

Operational complexity. Custody, security, recordkeeping and reporting for crypto require specialized infrastructure that many plan providers don't currently offer.

Fiduciary liability. Plan sponsors and advisers must document their prudent process for adding, monitoring and potentially removing crypto options.

The education challenge is substantial. Your role includes helping clients understand not just what crypto is, but whether it belongs in their specific retirement strategy.

Clarifying crypto through education

Perhaps the biggest challenge is that many clients who express interest in crypto lack a fundamental understanding of what they're actually buying, how it's valued or what risks they're taking.

Some participants approach crypto as a lottery ticket, hoping for life-changing returns without appreciating the equally life-changing potential for losses.

Others extrapolate recent performance into the future, assuming past gains will continue indefinitely. Still others hear about crypto from friends, family or media without understanding how it differs from traditional retirement investments.

Consider creating a client education framework, developing or sourcing educational materials that explain crypto basics, risk characteristics and appropriate use within retirement portfolios. Your client education could address:

Basic mechanics. What crypto is, how blockchain technology works and why digital assets might (or might not) have long-term value.

Risk characteristics. The potential for substantial losses, not just gains, and how crypto volatility compares to traditional retirement assets.

Portfolio context. Why allocation limits matter and how crypto fits within diversified retirement strategies.

Behavioral pitfalls. The dangers of emotional trading, over-concentration in speculative assets and investment decisions driven by the fear of missing out (FOMO).

Moving forward carefully

Cryptocurrency in 401(k)s represents a significant shift in retirement investing. For some clients and plans, carefully implemented crypto access provides valuable portfolio diversification and meets legitimate participant interest in emerging assets.

For others, the risks and complexities outweigh potential benefits.

Your role as an adviser is to help clients navigate this decision thoughtfully, implementing appropriate safeguards when crypto makes sense and explaining why it doesn't when circumstances don't support it.

Start with small pilots if you're exploring this space. Test infrastructure with a limited number of participants before doing a broader rollout. Gather feedback about education effectiveness and operational friction points. Document your process meticulously, including risk assessments, client communications, education efforts and the rationale behind investment decisions.

The evolution of retirement investing is underway. Advisers who develop clear frameworks for addressing cryptocurrency questions — whether that means carefully implementing access or explaining why they're waiting for greater regulatory clarity — will serve clients better than those who simply ignore the topic or react defensively.

The key is approaching crypto in 401(k)s the same way you approach any retirement investment option: With due diligence, appropriate risk management, clear client communication and a well-documented fiduciary process.

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• Investment Management: A Return to Simplicity
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• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Private equity is in flux as the threat of consolidation looms and more expensive debt reduces firms' ability to rely on deal structure and leverage to deliver outsized returns.

Economic conditions have changed, and private equity needs to change along with them, focusing less on financial engineering and more on traditional business-building principles.

Private equity's boom years

Since interest rates peaked in the 1980s, U.S. financial markets benefited from a secular decline in interest rates from 19.0% to 0.0%. Declining interest rates create accommodating conditions for high-risk assets, creating the foundation of several decades of success for the private equity industry.

Low interest rates also enabled high leverage, allowing companies to use additional debt capacity to create the lowest cost of capital in the financial markets.

That strategy served the industry well for years, generating returns in excess of those available in public markets. A PE-owned company's ability to carry and service debt became almost as important as its underlying customer value proposition.

The cost of capital advantage allowed private equity firms to outcompete even public market investors for assets, leading to a significant decline in the number of public companies per capita, down by nearly 70% from the late 1990s to today.

This private equity structure proved the most attractive form of business ownership over the past 20 years.

The cost of cheap debt

Despite the gains for limited partners, however, the ecosystem around these companies suffered; customers, suppliers and employees were left worse off thanks to private equity's financial engineering.

A company could be bought, merged with smaller businesses using significant debt facilities and then sold in less than three years without improving its underlying human capital, technology or operations.

The focus of business ownership shifted from expanding productive capacity at attractive profit margins toward debt-funded market share expansion at a high cost to ecosystem participants.

The pursuit of businesses with low-cost debt facilities also brought private equity firms into unfamiliar industries, ranging from accounting firms to car dealerships and sandwich shops.

Any company of sufficient earnings could act as a platform for private equity firms to perform debt-financed M&A on a huge scale.

But increased interest rates limited the debt capacity of companies, diminishing PE return prospects along with them. The ability to create value purely through debt-financed M&A has diminished, challenging the "roll-up" model that dominated industry returns for the past decade.

What must private equity do now?

Private equity must now return to business-building — basics that many industry participants ignored during the era of cheap debt.

By nimbly pursuing highly strategic, complementary acquisitions and by actively managing businesses, PE firms can revitalize and streamline businesses by bringing scale, technology and improved supply chain management to sleepier economic sectors.

PE firms need to build standalone public companies or private companies that could operate as standalone divisions of public companies.

The current market offers PE firms the opportunity to become champions of their companies, improving the experience of customers, suppliers and employees in the process.

To succeed, PE firms must become more industry-specialized and more selective in both their "platform" companies and their add-on acquisitions. PE firms must also develop a clear sense of the particular ways they can add value to each company.

Rather than buying mom-and-pop companies across the country, successful firms should bring industry knowledge, relationships and resources to deploy into opportunities that can scale into industry leaders.

For PE's clients, time frames for investments may elongate. The industry benefited from debt-driven M&A growth, which allowed exits within two years for successful consolidators. Building companies organically and through strategic acquisitions requires true market share expansion and revenue growth, which takes time.

Building better businesses

Despite interest rates declining, the cost to acquire a company has not declined. Today's investors face an environment where good companies remain expensive and cheap leverage is no longer the engine of returns.

As a result, value creation must come from fundamentally improving the businesses themselves, requiring a deep and strategic understanding of industries where PE firms choose to invest.

Passive value creation through financially engineered company expansion will not deliver attractive returns to limited partners anymore.

Instead, private equity firms need to be active in shaping the levers that drive sustainable performance: Human capital, digital transformation, go-to-market excellence and strategic M&A.

It's not crafting financial engineering — these are the areas where operational expertise makes the difference between good and great investments.

The future of private equity belongs to those who can drive returns by building successful businesses, working alongside founders and entrepreneurs to build scalable foundations for growth.

Private equity firms' success in this new landscape won't come from leverage or as a result of low interest rates. It will come from building better businesses — systematically, intelligently and in partnership with people who know them best.

Related Content

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• The 401(k) Shake-Up: Private Equity's Role and Risks
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• Best Stocks to Buy for Fed Rate Cuts

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When it comes to hiring, most interviews still look like a game of verbal ping-pong. The interviewer lobs "Tell me about a time…" and the candidate volleys back a perfectly practiced story. But today's workplaces don't run on perfect scripts — they run on improvisation, collaboration and quick thinking under pressure.

That's why a growing number of companies are experimenting with escape-room-style interviews — timed, team-based challenges designed to reveal how candidates actually think, adapt and work with others when the clock is ticking.

It's not about solving puzzles for fun. It's about revealing the soft skills that matter most: Communication, humility, teamwork and calm under chaos.

My escape room revelation

I attended an escape room with my YPO Forum recently. We were locked in a room and had to find the "real diamond" and replace it with the fake one.

I thought that this was sort of lame and would be simple, but it wasn't. We had to work together and use different skills — one of us needed to be able to read music and play part of a tune on a piano, another had to do the foxtrot, and others had to read codes upside down and find locks and hidden pictures.

It took lots of discipline and teamwork.

I watched as my forum-mates celebrated as a team, not as individuals, as we continued toward the goal.

It was also interesting that people backstage were monitoring us and stopping us from doing dumb stuff like trying to pull keys off the piano when the clue said, "Find the clue in the piano keys." It meant in the tune, not the actual keys.

We found the diamond, with 15 minutes to spare (just sayin').

The experience made me realize I would want my future employees to go through the same thing. Let's face it, if you want to know who really works well under pressure, lock them in a room.

Breaking out of the boring interview

Traditional interviews tend to measure poise, polish and preparation — not performance. As Harvard Business Review has noted, unstructured interviews are notoriously poor predictors of job success.

By contrast, simulated exercises reveal how people behave in real-time scenarios, not just how they say they behave.

Enter the escape room. Whether physical or virtual, these challenges simulate stress, time pressure, incomplete data and shifting goals — conditions that mirror modern work environments.

Researchers at BMC Medical Education have found that "escape-room-style simulations" improve assessment of leadership and collaboration compared to traditional interviews. They test not only intellect but interpersonal dynamics — who steps up, who listens and who credits others.

I discussed this with my daughter, Kyel, and mentioned that escape rooms would be a great way to interview for the banking industry. I see it with my graduate students at Columbia, some of whom go on ChatGPT to get the questions and pat answers for their interviews.

My daughter said, "Forget banking. If any field proves why these interviews matter, it's supply chain management — a profession where calm problem-solvers are gold."

Over the past few years, global supply chains have faced tariffs, shortages, volatile freight costs and skyrocketing prices that couldn't always be passed on to consumers.

Leaders in this space must make quick calls with imperfect information — rerouting shipments, juggling suppliers and making decisions that can ripple for months. Big accounting firms like Deloitte are trying to help the industry cope with these changes, but companies also need talent to match these strategies.

An escape room exercise can mirror those realities:

• A key "supplier" disappears midway through
• New "tariffs" appear, forcing quick adjustments
• The "budget" shrinks with minutes to go

You watch how candidates collaborate under uncertainty — who takes initiative, who asks for help, who listens — and who quietly credits the team when the buzzer sounds.

That's a much truer test of readiness than a canned answer about "strategic agility."

Why this works across roles

Escape-room-style challenges aren't just for supply-chain hires. They're powerful for any position that demands agility and teamwork — from project management to marketing, operations to finance.

Here's what they reveal:

• Problem-solving under pressure. Candidates must think critically and creatively when data is incomplete.
• Adaptability. When rules or constraints change, who freezes and who pivots?
• Collaboration. The ability to communicate, compromise and build on others' ideas is often more valuable than raw IQ.
• Emotional intelligence. Does someone dominate or listen? Encourage or dismiss? Do they share credit or seek it?

These qualities are hard to extract from a résumé but shine brightly in a shared, time-bound experience.

Designing your own escape-room interview

Whether you use an off-the-shelf escape room vendor or build an in-house simulation, the principles are the same:

• Mirror your work reality. For sales, simulate a client negotiation with shifting goals. For tech, a system outage. For a supply chain, a disrupted delivery.
• Add constraints. Time limits, incomplete data or new obstacles introduced mid-task.
• Observe silently. Let behavior emerge naturally — don't intervene.
• Debrief immediately. Ask candidates to reflect: What did you learn? What frustrated you? How did you decide who led?
• Evaluate collaboration, not victory. Sometimes, the most revealing test is one that can't be solved in time.

Caution: Not every candidate thrives in these settings

Yes, it's fun, but the goal isn't entertainment. It's behavioral insight. You still need structured evaluation criteria, trained observers and fairness safeguards. Not every candidate thrives in game-based settings, so balance creativity with equity.

Still, the benefits are hard to ignore: Deeper engagement, memorable experiences and insights into traits that no résumé bullet point can show.

The bottom line

In a world of complex challenges — from tariff swings to tech disruptions — the real differentiator isn't what candidates know but how they think and collaborate.

The escape room interview gives employers a glimpse into that reality. It turns hiring into a high-fidelity test of what matters most: Composure, creativity, teamwork and trust.

After all, if someone can stay calm, problem-solve and credit their team while trapped in a locked room with a ticking clock, they're probably ready for whatever challenges your business throws their way.

Related Content

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• Looking to Make a Job Change? How to Stand Out Like a Pro
• College Grads: This Is What Hiring Managers Are Thinking (But Won't Admit)
• Seven Steps to Build Your Billion-Dollar Business Today
• I'm a Financial Literacy Expert: Bubble-Wrapping Our Kids Robbed Them of Resilience. Now What?

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Today's story is an example of the old saying, "When the cat's away, the mice will play." In litigation, you are the cat. Your attorney's large law firm is the mouse that bills you thousands of dollars in unjustifiable and grossly inflated — read: fraudulently inflated — attorney fees for "billable hours" your attorney did not work, but their firm made doing this the only way to remain employed.

In the mid-1900s, in an effort to increase incomes, the legal profession went from fee schedules in which creating a will, defending a DUI or handling a divorce would cost the same no matter how many hours it took, to the billable hour.

In 1958, the American Bar Association recommended a reasonable 1,300 yearly billable-hour goal, which meant a lawyer could be home for dinner with the family and lead a normal life.

Today, massive, heartless, soulless Big Law firms (and many midsize ones) require 2,200 or more billable hours, which translates into being at work 60-plus hours a week, or 10 to 12 hours a day, five days a week and often on weekends. This invites billing for time not spent on a client's matter, also known as fraud.

This marathon destroys families and leads to multiple divorces, burnout, depression and substance abuse.

As Lyle Sussman, professor emeritus in the College of Business at the University of Louisville (and a friend of this column), puts it, "I have consulted with executives across many industries. It is ludicrous to assume that anyone assigned to high-risk, high-reward work can consistently devote 60 hours per week without experiencing declining energy, commitment, efficiency and morale."

Withdrawal symptoms are appearing

If you are engaged to a lawyer who has been offered a job at one of these firms, ask yourself, "How happy will I be when having dinner with my spouse and kids is impossible? Do I want to be with someone who works in a sweatshop and is married to the firm?"

Well, today, the legal profession is starting to experience withdrawal symptoms as its drug of choice — overbilling clients — is being challenged by AI's incredible time-saving abilities.

"AI is creating seismic disruption in industries built on the scanning, collection, synthesis, formatting and reporting of data," Sussman says. And that includes the legal profession.

(For a fascinating history of billing fraud and how we got here, you can check out the article "Bill, Baby, Bill: How the Billable Hour Emerged as the Primary Method of Attorney Fee Generation" by Stuart Pardau in the Idaho Law Review. Another article, by Nancy Rapoport and Joseph Tiano Jr., both friends of this column, worth checking out is: “Fighting the Hypothetical: Why Law Firms Should Rethink The Billable Hour in the Generative AI Era,” published in the Washington Journal of Law, Technology & Arts.)

A real-world example

"Taylor" phoned my office from Little Rock, Arkansas, and was upset.

"My lawyer billed 12 hours for discovery in a simple debt lawsuit," she said. "Her invoice listed 'drafting interrogatories, requests for admissions and related written items,' copies of which I have. We are both country gals, but these are written oddly, not the way people usually speak — they are just too polished.

"Would you please go over them and tell me what you think? I know she is being considered to become a partner in the firm, but before this, I never saw anything that raised a doubt."

I agreed and asked for the particulars of the case — amount, services or product sold, location, date, parties and court jurisdiction.

I looked over what she sent, and Taylor was correct. The discovery requests didn't "sound" normal. So, I ran them through three different online AI checkers. Bingo! The AI checkers indicated the documents were 88% to 95% created by AI. (For the record, AI checkers can sometimes flag original content as being created by AI, which is why I used three different tools.)

Next, using a free AI resource, I entered Taylor's details and specified that I wanted content that was "at a sixth-grade level." I hit enter, and almost instantly, beautifully written documents appeared. It would have taken me hours to draft the same things.

Clearly, Taylor needed to discuss the billing issues with her lawyer (we'll call her Amanda) and challenge the number of hours. I gave Taylor tips on how to come across with a positive attitude.

A proper way to challenge the bill

State the issue factually. This will avoid confrontation and keep the focus on the issue, not Amanda's integrity or honesty. Taylor could say, "The discovery requests appear to have been generated by AI. As it produces drafts almost instantly, I don't understand the several hours billed for them."

Ask for an explanation, but don't make an accusation. She could say, "Can you show me how that time was calculated — what work went into the discovery that was not AI?" Let's assume Amanda does this but can't justify the time billed.

Be clear and reasonable in your request for a reduction. Taylor could say, "My understanding is that bills for professional services need to reflect the actual time it took to do the work. AI is a great tool, but doesn't the bill still need to be accurate? Can you help me understand it, or" — giving Amanda an out — "perhaps did a paralegal or secretary not realize that AI was used and billed a standard amount for the work?"

If you get a refusal to adjust the bill, remain polite and calm. "Well, anyway, it is always a pleasure to get together with you, as we have known each other all these years, so I will discuss this with my CPA and a friend who's also a lawyer" — the idea is to refer to another authority — "and get back to you on a resolution and whether to continue our relationship."

Should Taylor change lawyers? Based upon my experience, yes, she needs to obtain a new lawyer. She could contest the bill with her local bar association's fee arbitration, but even if they order a reduction, once trust is broken in the attorney/client relationship, doubt will remain forever.

This is true even if her attorney comes clean and apologizes; she's already made her character clear. You can't trust a lawyer who has tried to cheat you.

The billable hour has become a liability

An AI tsunami has hit the legal profession. Document review, once requiring weeks of several junior lawyers' billable time, can now take just hours, creating an existential challenge as branches fall off the money tree.

If lawyers take a giant leap back to a time of fixed or outcome-based fees, it will be a cultural earthquake, where retention and advancement, based on "hours billed," become meaningless.

Partner compensation dependent upon individual billings must be rethought.

Instead of fee-generation as their goal, lawyers might actually think about helping clients solve their legal problems without running up the bill.

And the billable hour may find itself in a museum display case.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

On the morning after the sale of your business, the wire hits your account. You open your phone.

There it is — $5 million.

For a few seconds, your shoulders drop. The stress, the deadlines, the payroll worries — all of it seems to fade into quiet. You think, "This is what I've worked for my entire life."

But as the hours pass, a strange emptiness creeps in. The phone doesn't ring like it used to. The inbox is silent. There's no meeting at 9 a.m., no one asking for your signature, no fires to put out.

You've reached the finish line — but there's no tape, no roar of the crowd. Just quiet.

The space between 'sold' and 'what's next'

Every entrepreneur imagines what life will feel like after selling their business for big bucks. Very few prepare for it.

The moment you close the deal, you move from constant urgency to complete stillness. That kind of silence can be disorienting for people who are used to burning the candle at both ends.

It's not the money that challenges you — it's the absence of motion. For years, your identity has been tied to building, managing, deciding and creating value for your customers or clients. When that purpose evaporates overnight, it leaves a gap no portfolio can fill.

So before you start investing, building or buying again, give yourself a little time to simply exist without a business attached to your name. It's harder than it sounds — but that quiet is where clarity starts.

Take a beat before you build again

Many former business owners rush to fill the void. They start another company, buy property or invest in a friend's idea — anything to feel that forward momentum again.

But jumping too quickly can blur the line between excitement and escape.

Take 90 days. Maybe six months. Wake up without a calendar full of calls. Relearn what you enjoy doing when no one's watching the clock.

Ask yourself:

• What parts of running the business truly energized me?
• What parts drained me?
• Who am I when there's nothing left to prove?

You'll be surprised by how much clarity comes from doing nothing in a world that constantly tells you to do more.

Money isn't a goal — it's a tool

The number in your bank account is just that — a number. It can give you freedom, or it can give you anxiety, depending on what you do next.

Rather than focusing on investments right away, focus on structure.

A simple framework:

• Security. Pay off what needs paying off. Keep enough liquidity that you can sleep at night
• Lifestyle. Decide what comfort and joy look like now — not extravagance, just design
• Growth. Create a plan for investing that doesn't depend on luck or impulse
• Legacy. Think about the impact you want your money to have long after you're gone

Money has power. But power without purpose tends to drift.

Beware the 'second startup trap'

Most entrepreneurs don't retire — they reinvent. It's in their nature. The problem is, not every next move deserves your energy.

If you feel the urge to start something new, that's natural. But pause long enough to make sure it's not just nostalgia for the chase.

Ask yourself a few grounding questions:

• Am I building this because I believe in it, or because I miss being busy?
• Would I still do it if it made half as much money?
• Does it make my life bigger — or just louder?

You earned the right to be selective. Exercise it.

Redefine what 'work' means to you

When the title on your business card disappears, you have a chance to rewrite your story.

You might mentor someone just starting out. You might invest in an idea that excites you but doesn't consume you. You might take on projects that pay nothing but matter deeply.

Fulfillment doesn't always look like another company. Sometimes it looks like peace, contribution or curiosity.

Purpose over profit

The happiest people I know who've sold their businesses didn't chase the next big score. They chased meaning.

They created scholarships. They funded community projects. They showed up for family events they used to miss. They used their money to build a life that was intentional, purposeful and meaningful.

As Viktor Frankl once wrote: "Life is never made unbearable by circumstances, but only by lack of meaning and purpose."

Purpose doesn't come from the sale — it comes from what you decide to do after it.

The bottom line

Selling your business for $5 million is an extraordinary milestone. But don't let that number define you.

You didn't just sell a company — you sold the story you've been living. Now you get to write another one.

There's no right answer for what to do next. The only mistake is to believe the story ends here.

Take a breath. Look around. Then decide what's truly worth your time, your energy and your heart.

Because this next chapter — the one without payroll, deadlines or investor meetings — might just be the best one yet.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For many successful business owners, there comes a point when traditional retirement plans just don't move the needle anymore.

If you're hoping to further reduce your taxable income and accelerate your retirement savings — and you're already maximizing your 401(k) and profit-sharing contributions — a cash balance plan might be the solution you've been looking for.

What is a cash balance plan?

A cash balance plan is a defined benefit plan, which means it's similar to an employer-sponsored pension but has the flexibility and feel of a 401(k). It can be an especially useful tool for small business owners.

Here's how it works.

Each plan participant's benefit amount grows annually based on two components:

• An employer contribution, or "pay credit," which may be a salary percentage or a flat dollar amount
• An interest credit, which is a guaranteed rate, often 4% to 5%, and defined by plan documents

The assets in a cash balance plan are invested in a "pooled" account managed by the plan's investment adviser. But the value of each participant's benefit is guaranteed, regardless of market performance.

What are the advantages for business owners?

Think of a cash balance plan as a way to stack another retirement plan — one that allows significantly larger contributions and tax deductions — on top of your 401(k). This type of plan can provide:

Major tax deductions. Cash balance plans are designed for high-income professionals and business owners who want to reduce their taxable income.

Depending on age and income, it's common to contribute $100,000 to $300,000 a year, all of which is tax-deductible to the business. For someone in a 40% combined tax bracket, this could mean $40,000 to $120,000 in annual tax savings.

Accelerated retirement savings. Because contribution limits rise with age, these plans are ideal for owners in their 40s, 50s or 60s who want to "catch up" quickly on their retirement savings.

By combining a cash balance plan with a 401(k)/profit-sharing plan, total retirement contributions can exceed $300,000 a year in some cases.

Attracting and retaining key employees. A cash balance plan can also serve as a powerful employee retention tool. You can structure the plan so that owners receive the majority of benefits while still offering meaningful retirement contributions to employees.

It's a win-win: Employees appreciate the added benefit, and owners can enjoy significant savings.

Predictable and guaranteed growth. Unlike a 401(k), which depends on positive market returns, cash balance plans offer a guaranteed annual interest credit.

This makes future benefit projections more stable and creates a dependable foundation for your long-term financial plan.

Here's a hypothetical example of how a cash balance plan might work for Linda, a 55-year-old business owner who earns $400,000 annually and is maxing out her 401(k) each year.

By adding a cash balance plan, Linda could contribute an additional $150,000 to $200,000 annually. This helps reduce her taxable income and saves $60,000 to $80,000 in taxes each year, while building her retirement assets much faster.

Are there any downsides to consider?

A cash balance plan may not be a good fit for every business or business owner. Both the planning and follow-through can be complicated, and you should be prepared for a long-term commitment.

Some considerations:

• As with any investment strategy, you'll have to remain in line with IRS rules. The IRS expects consistent annual contributions, though some flexibility is available.
• It's also important to note that any investment risk with this strategy is the employer's responsibility — so you'll want to give careful consideration to your selections and to the administrator you choose to establish and run the plan.
• It's also important to work with a financial adviser you can trust, along with other professionals (such as a CPA or an attorney), to help you build a plan that meets your specific needs and goals. You'll also have to hire an actuary each year to calculate the annual funding requirements. Still, for many high-income business owners, the tax and retirement benefits far outweigh the costs.

Is a cash balance plan right for you?

When structured correctly, a cash balance plan can supercharge your retirement strategy and create significant long-term wealth while allowing you to keep more of what you earn.

If your business is consistently profitable and you want to optimize taxes while accelerating your retirement savings, it's worth exploring what a cash balance plan could do for you.

This Department of Labor FAQ offers some basic information, but I highly recommend that you work with a financial adviser or fiduciary who has experience with this complex strategy to determine whether it's right for you.

Kim Franke-Folstad contributed to this article.

The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In the rapidly evolving world of business, simplicity often gets overshadowed by the allure of the latest technology and artificial intelligence (AI) advancements.

While these tools offer incredible potential, they can also introduce complexity that distracts from the core mission — providing exceptional service to your team and your clients.

To truly scale your business, embracing simplicity is key. That is what will allow you to distinguish yourself in a market that becomes more automated.

Stay focused on essentials

Scaling a business is akin to building a house. Without a solid foundation, even the most glamorous architecture will crumble. In business, this foundation consists of a few core principles that, if consistently applied, yield great success:

Know what you do well. Being able to communicate what you do well, specifically when it comes to helping people enjoy a successful retirement, is key. Often, we take for granted how good we are at helping people plan their retirement.

Guiding clients in the areas of income, taxes, estate planning and health care is a big differentiator from the person who helps only with investments.

Streamline workflows. Audit your operational processes to eliminate redundancies. It's amazing how we can complicate things through the years. We often add to, but very seldom subtract from, our processes.

Embrace technology, but don't think it's the magic solution

Technology is a powerful ally in the quest for growth, but it should be used strategically.

Employ selective automation. Use technology to automate repetitive, non-client-facing processes like data entry or scheduling, freeing up resources for more high-touch activities.

Leverage AI for efficiency. If you aren't using AI, you're falling behind — because your competitors are using it. AI can enhance your ability to analyze data, predict client needs and personalize interactions at scale.

Just remember that it should complement, not replace, the human touch that builds trust and loyalty.

Use data-driven insights. Leverage analytics tools to understand client behaviors and preferences. These insights inform strategies that enhance client interaction without requiring you to overhaul your existing system.

The impact of personal touches

In today's digital world, the human connection can be your most powerful differentiator. Personalized, unautomated interactions show clients they are truly valued.

Send handwritten notes. A simple, heartfelt note can convey authenticity and appreciation, qualities that mass-produced emails often lack.

Make phone calls. Taking the time to personally check in on a client conveys care and commitment. In a time when most interactions are digital, a voice call can strengthen relationships.

Cultivate meaningful client relationships

Building and nurturing relationships is at the heart of business success. A relationship-first approach not only retains clients but turns them into advocates.

Do fun things together. At Advisors Excel, our biggest investment, outside of staff, is in creating meaningful experiences with our adviser community.

Are you doing the same with your clients? Think through how you can create a connected community of fans.

Elevate your impact with one-to-many communication. While personal touches and regular check-ins are vital to success, you can save yourself a lot of work by finding ways to communicate to a large group of your clients at one time.

Regular events like "Wine and Wisdom" or "Markets and Mimosas" are fun ways to bring clients together and communicate en masse.

The power of simplicity

Scaling a business doesn't require adopting every new piece of technology or being everywhere all at once. It's about doing a few things exceptionally well and maintaining a personal connection with those you serve.

As we embrace new opportunities in 2026, let's remember that simplicity, combined with a commitment to personal touch, will set the foundation for scalable growth and enduring client relationships.

By focusing on what truly matters, relationships and taking the time to show genuine appreciation, you will continue to succeed in an ever-changing world.

Results from the use of these strategies are no guarantee of your future success.

Cody Foster is co-founder of Advisors Excel in Topeka, Kansas. Advisors Excel has a mission to help "good financial advisors become great business owners so they can help people enjoy an amazing retirement." Since its founding in 2005, the company has grown from the three original founders to over 1,000 employees today, making them one of the largest employers in Topeka.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Financial advisers are feeling a shift in real time. Clients with growing wealth have increasingly nuanced needs, AI is reshaping service expectations, and competition among credentialed advisers is intensifying.

This article speaks directly to advisers who want to stay ahead of that curve. The question is no longer whether specialization is coming — it's how advisers can deliver it and communicate it in a way that resonates with today's clients.

While many advisers still operate as generalists, the complexity of wealthy clients' needs, combined with consumer demand and technological change, suggests the future of financial planning belongs to specialized experts.

The profession is maturing

The financial services profession is going through a significant maturation. CFP Board's public awareness campaign and resulting growth have helped create a well-recognized, credentialed baseline for financial planners and those they serve.

The American College of Financial Services' Chartered Financial Consultant® (ChFC®) provides the same education (plus an additional course) without the high-stakes exam or bachelor's degree requirement, but it isn't as well known to the general public.

Together, these credentials point to a potential future where half (or more) of advisers will hold one or both, raising the proficiency floor while also making it harder for advisers to stand out on credentials alone.

Beyond the expertise of a generalist

That level of baseline education is incredibly valuable to the majority of American families. Yet advisers tend to desire clients with wealth, generally $1 million or more in investable assets, and with wealth, comes complexity that often stretches beyond what a generalist can comfortably navigate.

This is where advisers typically turn to their centers of influence for guidance, but many still end up wading through complexity on their own.

Early in my career, I remember reading horror stories that resulted not from bad intentions but from avoidable knowledge gaps. Ed Slott and Company's events were filled with examples: distribution errors that triggered unnecessary taxes, paperwork mistakes that derailed wealth transfer plans and timing missteps that couldn't be undone.

Not a single one dealt with a poorly allocated portfolio. They were all issues rooted in technical details.

Navigating this kind of complexity doesn't always require more time — it requires knowing what to do when, understanding the downstream implications and having the confidence to anticipate problems before they occur.

That's what most consumers in our recent research with Endeavor Business Intelligence say they want. And it raises the central question for advisers: How do we deliver it consistently and credibly?

Specialization is gaining momentum

A segment of the profession is already embracing specialization. Many thought leaders, and a growing number of advisers, talk about the value of niche expertise, the discipline it requires and the difference it makes in serving clients with highly specific needs.

But there are still far too many generalist advisers positioning themselves as specialists. From where I sit, raising consumer awareness and strengthening education is one of the most effective paths forward.

Specialists do exist in financial planning; consumers simply don't yet have an easy way to identify them.

Once consumers understand that financial planning is evolving, in a way similar to other professions that developed deep specialties over time, they will quickly recognize the value of differentiated expertise, even if they don't yet know how to spot it in a bio or on a business card.

That broader understanding is still likely a decade away. But AI could accelerate the shift by absorbing more of the generalized advice that younger or less complex clients typically need.

That would increasingly force advisers to distinguish themselves not by the basics, but by the depth of their technical knowledge and their ability to guide behavior through uncertainty.

How advisers can deliver specialization: Starting now

Consumers are already looking for advisers who can help them with very specific needs. Advisers who lean into this shift early will have a strategic advantage.

Here are steps advisers can take now to signal their specialization and deliver deeper expertise:

1. Define the complexity you want to serve

Rather than trying to "specialize in everything," advisers should identify the intersection of:

• The client problems they are best equipped to solve
• The scenarios they encounter frequently
• The areas where they already have deeper education or interest

Clarity here doesn't limit growth — it directs it.

2. Strengthen the technical foundation

Specialization must be backed by education. Programs such as the ChFC®, CLU®, RICP® or WMCP® provide structured paths toward deep expertise in areas ranging from retirement income to insurance to portfolio construction.

This kind of training goes beyond high-level guidance and equips advisers to handle complex client scenarios confidently.

3. Formalize a network of experts

No specialist operates alone. Advisers should develop a consistent, vetted ecosystem of tax professionals, estate attorneys and insurance experts.

Making these relationships visible to clients reinforces credibility and signals that the adviser is committed to delivering comprehensive expertise, not just general advice.

4. Communicate differentiation clearly

Clients cannot hire what they cannot identify. Advisers should:

• Update digital bios to reflect precise areas of expertise
• Create brief educational content that showcases specialty knowledge
• Highlight specific client scenarios they solve (without revealing identities)

Consumers increasingly look for advisers who "speak their language," and specificity communicates confidence.

5. Use AI to elevate, not replace, expertise

Advisers should embrace AI for what it does best: streamline analysis, automate routine tasks and model scenarios quickly.

That frees up time for advisers to focus on the high-value work only humans can do, interpreting goals, coaching behavior and navigating complexity.

AI will not diminish the role of advisers. It will amplify the advantage of those with deep expertise.

The path forward for advisers

Consumers already want specialists. The industry is moving in that direction. AI will only accelerate the shift.

Advisers who embrace specialization and make it visible, credible and consistent will be better positioned to serve the complex needs of wealthier clients, differentiate themselves in a crowded marketplace and build stronger, longer-lasting relationships.

The advisers who thrive in the decade ahead will not be those who try to be everything to everyone.

They will be the ones who confidently step into the areas where they deliver exceptional value and communicate that specialization clearly to the clients who need it most.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Over the years, I've worked with families who own businesses — represented, consulted, held nervous hands, kept family members from diving across the table at each other.

In the process, I've come to know just how difficult running a family-owned business can be.

Often, conflict arises when a son or daughter graduates from college with a business degree, their head filled with ideas from classes taught by professors who have never actually been in business. The kids want to go in directions the founders (Mom and Dad) see as financially dubious.

Managing these types of conflicts can yield results that are equivalent to a shot of vitamin B-12 if — and it is a big if — the parent/founder can bring to the table wisdom and respect of and by family, friends and customers.

That one person can unite family and employees, leading to a level of business success and accomplishment that can positively impact an entire community. I've seen it happen, including with the topic of today's column.

Honored for decades of service

One of the most inspiring people I know reflects those qualities in his life and the family business he founded.

I was present in May 2025 when 69-year-old Morgan Clayton was awarded an honorary doctorate of Humane Letters by the president of California State University, Bakersfield, because of his decades of service to his community. (Editor's note: Mr. Beaver was also awarded an honorary doctorate, but he's too humble to mention that here.)

As chairman of the board of Tel-Tec Security Systems, which he founded in 1982 and which serves more than 20,000 customers in California's Central Valley, Clayton is proof that thinking of others, including helping youths in need of direction, is of enormous value to a community — and reflects positively on a business.

I sat down with his three children — daughter Tasha and sons Kevin and Tyson, whom their father described as "being essential to our growth, who we are today" — and asked them to describe what their father does that has made this family-run enterprise so successful and respected.

"Morgan's very DNA is rooted in finding positive solutions, sending a message that he cares," Tasha said. (As a sign of respect in the workplace, the siblings refer to their dad by his first name.)

As I talked with these three siblings, it soon became obvious that their father's attitude and life philosophy would benefit family-run businesses everywhere.

The words and philosophy Morgan Clayton lives by

With an endearing smile, Tyson added, "Everyone is his friend, and one of his famous quotes is, 'People do business with people they know, like and trust.' He lives by that — making decisions with this philosophy and referring to it all the time."

Kevin noted, "He doesn't accept 'no' as an answer and will do what others overlook or don't want to do. He has always been a role model for our family and employees, with qualities that open the door to success, beginning with generosity, thinking of the less fortunate in our community and asking, 'How can we address this situation? What can we do, as a company and in our individual capacities, to help?"

'There are no obstacles — only opportunities'

I asked Tasha, "How does Morgan's philosophy apply to finding solutions to obstacles or challenges that come up in your business?"

"I have often heard him say there is no such thing as 'an obstacle,'" she said. "It is called 'an opportunity.'"

Tyson observed that Morgan "doesn't hear negativity; he doesn't like it. He can't stand it. Everyone knows — family, board members and every employee — that if you have a problem that needs his help in finding a resolution and you want to discuss it with him, you've got to be open-minded and look at the issue as an opportunity.

"If you can't navigate in that direction, then do not waste his time. Morgan is always seeking a win-win solution and does what it takes to achieve that in an honest and ethical way."

Curiosity plays a huge role: They track every customer they lose

Curiosity, I learned, runs deep among Tel-Tec's management. They want to know how they are doing, especially when faced with a customer who leaves the company.

When informed that a customer is at risk of departing or has actually left Tel-Tec, the company begins a process to discover if it was due to an error on its part. Employees ask, "Can we make it right?"

The customer's decision is respected, of course, but employees get together as a team to ask, "What did we learn from this so it will not happen again?"

"Everyone's voice is important," Tasha points out, adding, "We do not disregard. Rather, we bring issues to the table, and it is so comforting to know that our brand is affected by the vision people have of us.

"The best referrals come from our customers and from all of us understanding that our culture includes providing superior security services and giving back to the community."

'When you invest in us, you invest in your community'

As I learned from his children, Morgan Clayton didn't just file corporate papers and open the doors of a security company. "He created a vehicle that provides needed security services and benefits to our community that cannot be measured in dollars alone," Kevin said.

As one Tel-Tec worker told me, "We know how blessed we are to be part of all this."

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As a financial professional, you build your business on trust. Clients seek guidance on their most important life decisions, and that relationship is founded on more than just numbers. It's about connection.

What if you could deepen that connection, expand your reach and strengthen your team while making a tangible difference in your community?

Strategic community engagement offers a powerful way to do that. It's about aligning your firm's values with meaningful action.

The benefits go far beyond a simple tax deduction. When done right, giving back can boost brand recognition, drive referrals and foster a company culture that top talent wants to be a part of.

Let's explore how real advisers are turning community spirit into business growth.

Build your brand by building your community

In a crowded marketplace, a strong brand helps you stand out. Community involvement is an authentic way to show your firm's values.

Instead of just telling people about your causes, demonstrate them through action, creating a reputation that marketing dollars can't buy.

Just ask Rob Russell of Russell Total Wealth and Wellness. His Dayton, Ohio, firm decided to move beyond sporadic donations and focus its philanthropic efforts on four core pillars:

• Supporting military veterans and first responders
• Mentoring local youth
• Improving community health care
• Boosting Dayton's business reputation

By becoming a lead sponsor for such organizations as Big Brothers Big Sisters, the Russell name became highly visible at local events.

This strategic approach didn't just feel good; it helped elevate the firm's profile and showed the community who they were.

Turn authentic connections into client relationships

Many advisers find their best clients through referrals, which are built on trust. Community engagement is a natural way to build that trust on a wider scale.

When potential clients see you and your team volunteering or passionately supporting a local cause, they see you as more than just an adviser. They see you as a neighbor.

This is exactly what the team at Russell Total Wealth and Wellness experienced. The firm's deep community involvement led to referrals, including a client who likely would have never attended a traditional seminar. These clients were drawn to the firm's genuine commitment to the community.

David Brooks of Retire SMART found a similar path to connection, with a different method. His calls strategy involves re-engaging past prospects with timely, relevant information.

By reaching out with a thoughtful message tied to current events, he turns a cold lead into a warm conversation.

This approach, focused on personal connections, helped bring in a substantial number of assets in a single year. It proves that focusing on people first pays off.

Strengthen your culture and engage your team

A strong company culture is essential for attracting and retaining great employees. People want to work for a company with a purpose beyond the bottom line.

Involving your team in community initiatives can increase morale, foster teamwork and create a shared sense of pride.

Chad Slagle of Slagle Financial saw his employees become more engaged — and more grateful to work for a company with heart — by shifting to a service-oriented mission. Spurred to action by the death of a local police officer who left behind a wife and daughter, Chad founded Teaming Up for Good, his firm's philanthropic wing.

The initiative, which supports first responders, the military and children, gave his team a powerful cause to rally around. It transformed their workplace into a community of people making a difference together.

Create a legacy of lasting impact

While the business benefits are clear, the most profound outcome of community engagement is the positive change you create. By addressing local needs, you can help build a legacy that lasts.

Slagle's support for the Tyler Timmins Memorial Foundation, created in honor of the fallen officer, shows how a firm can help heal and strengthen its community in a time of need.

Similarly, Josh Bradley of Capital City Financial Partners hosted educational events with FBI agents to teach clients about elder fraud and cybersecurity. By providing this vital service, his firm became a trusted advocate for its community's most vulnerable members.

Actionable steps to get started

Ready to harness the power of giving? Here's how you can start:

Define your mission. Identify causes that align with your firm's values and resonate with your team. What are you passionate about?

Plan with purpose. Start small. You don't need a massive budget to make a difference. Choose one or two initiatives, and do them well.

Involve your team. Ask your employees what causes they value. Giving them a voice will increase buy-in and engagement.

Partner for impact: Collaborate with local nonprofits or community organizations. They have the expertise and infrastructure to help you make a real impact.

Share your story. Let your clients and community know what you're doing. Share updates in your newsletter, on social media or at client events. This inspires others and reinforces your brand's commitment.

Ultimately, integrating community engagement into your business model is a win-win. You'll build a stronger business, a more engaged team and a better community. It's a powerful reminder that doing good truly is good for business.

Related Content

• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Loosening the Reins in Philanthropy Could Mean Better Outcomes
• Developing a Charitable Giving Strategy: Where to Begin
• Integrity, Generosity and Wealth: A Faith-Based Approach to Business

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The 2020s have been a transformative time for advisers. After the COVID-19 pandemic, recent years introduced an unprecedented explosion of new products, platforms, changing demographics and rising expectations from time-constrained, tech-savvy clients.

Despite these transformations, the core of successful financial advising remains unchanged: the human touch.

In my daily interactions with advisers, the overwhelming viewpoint is: In 2026 and beyond, advisers must harness the power of technology to enhance the personal, authentic connections that are the cornerstone of their role.

Advising — it runs in the family

As shown by our research, the financial advisory industry is no longer simply managing investments; it provides comprehensive financial guidance and support.

However, who receives that support and what they expect from their adviser is changing rapidly.

We're in the beginning stages of the biggest wealth transfer ever. This means new clients who differ widely from their parents and spouses in terms of risk tolerance and communication preferences.

Inheritors might not settle for simply working with their spouses' or parents' advisers. They might look elsewhere to assess their options, and a key differentiator is empathy.

This is a significant opportunity for advisers. They must:

• Adapt their human touch to better serve a younger and more diverse clientele
• Develop skills to understand and address the unique financial needs and concerns of these clients, ensuring that they feel supported and heard

We're already seeing advisers adjust their practices to account for future transitions through family-based planning. Engaging with an entire family to workshop solutions ensures all members approve of the financial strategy, building trust and fostering long-term relationships.

The most successful advisers in 2026 will be those who prioritize coaching and planning with families over transactional services to counteract the increasing complexity of clients' financial lives and the need for personalized, holistic advice.

Humans lead, and technology must follow

Technology remains a fundamental enabler of success for advisers, and the pace of change is accelerating. Great advisers use sophisticated tools to manage portfolios, account transitions and tax-loss harvesting.

As advisers have updated their practices to account for increased demand for personalized counsel, technology will evolve alongside them.

Generative AI is a prime example. Advisers can use generative AI to take notes and recap calls, allowing them to worry less about capturing next steps and instead focus on building rapport with clients.

They can also use generative AI to summarize market trends and advice quickly based on the acumen level of clients and how they like to receive information. In both cases, advancements in technology help advisers focus on the human side of advising.

Extreme investment product proliferation has led to an overwhelming number of options for advisers and their clients, and has indirectly influenced the subsequent rise of separately managed accounts (SMAs).

While SMAs allow clients to receive tailored solutions, it complicates an adviser's bird's-eye view of their entire portfolios.

As more funds become available and clients increasingly expect personalized and flexible support, advisers should leverage AI to examine which will be true value-adds.

For example, advisers should analyze what they're purchasing to confirm products are "true to label" and without "hidden" drawbacks, such as having a high expense ratio relative to the peer group average.

Though all investing is subject to risk, this extra analysis can help advisers feel confident they're giving their clients the best chance for investment success.

Advisers can also leverage tools and support from such asset managers as Vanguard to oversee ongoing portfolio management. Asset managers can help advisers achieve scalability with portfolio construction tools that can run on-demand diagnostics of portfolio risk and return drivers to create custom reports and action plans for clients.

By using AI and other tools to weed through new offerings and develop scalable solutions, advisers can more quickly make decisions, allowing them to spend more time on strategic planning, relationship management and prospecting, and less on administrative tasks.

The talent shortage is a 'right now' problem

McKinsey estimates that, by 2034, the financial services industry will face a shortage of about 100,000 advisers. As with the generational wealth transfer, this is a "right now" situation.

To account for and address shortages, firms, banks and home offices alike must rethink their practice management — both from a talent and a tool standpoint.

For example, we work with advisers who are experimenting with teaming to maximize resources and embrace efficiencies, while other advisers lean on diversified, managed model portfolios to free up time to take on new clients.

To attract and retain top talent, institutions must provide autonomy to advisers where possible. In this era of rapid innovation, it will be important to offer the freedom to choose from a broader universe of products.

Scalable, portfolio-based solutions can help advisers make their role more manageable and appealing.

Institutions can also offer training programs that focus on both technical skills and soft skills, such as communication and empathy, to help advisers connect with new prospects and existing clients.

The reality is that, even in the face of a talent shortage, expectations and demand aren't slowing down. The good news is that neither will the evolution of technology. By leaning into technology to streamline tasks and evolving practice management, advisers can stay ahead.

Conclusion

Next year will be defined by the seamless integration of innovative technology and the irreplaceable human touch.

By leveraging new technology to better provide coaching and planning and address the talent shortage, advisers can thrive in an increasingly competitive market.

Related Content

• Investment Management: A Return to Simplicity
• The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
• I'm a Personal Finance Expert: Here's the Truth About Using AI to Plan Your Retirement
• How AI and Human Expertise Are Changing Wealth-Management Services
• Sorry, But AI Alone Doesn't Cut It for Financial Planning

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.