# Weekend Reading for Financial Advisors Latest insights on investment funds, Roth conversions, and estate planning strategies. - **Source:** [Nerd's Eye View | Kitces.com](https://brifing.si/source/c3dd3d07-ecf0-4aad-94c5-a65e2173600d) - **Published:** 2026-08-07 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/5d0bb9d8-f0ca-40ae-b3fd-2fb6eb66bace ## Return Gap in US Investment Funds Morningstar's 'Mind the Gap' report reveals that over the 10 years ending in 2025, investors in US equity mutual funds and ETFs achieved stronger returns compared to other fund categories, with a narrower return gap. This gap, representing the difference between fund returns and investor returns, was particularly wide in volatile categories like alternatives and sector equities, highlighting the impact of investor behavior on actual returns. ## Bitcoin ETFs: A Cautionary Tale While Bitcoin ETFs themselves generated positive returns, the average investor in these funds experienced negative returns due to high volatility and poor timing of trades. This underscores the value of financial advisors in helping clients maintain disciplined, long-term investment strategies rather than reacting to short-term market movements. ## Hiring Flexibility in Advisory Firms RIAs seeking to hire are increasingly flexible about 'required' credentials and years of experience in job descriptions. Cerulli Associates data shows that even firms with high client retention can experience declines in assets under management due to client decumulation, emphasizing the ongoing need for new client acquisition regardless of growth objectives. ## Net Present Value in Roth Conversions Using net present value calculations can demonstrate both the potential value of partial Roth conversions and the timeframe for investors to recoup their conversion 'investment.' Key considerations include how clients will pay conversion taxes and their proximity to critical income thresholds affecting deductions and credits. ## Managing IRMAA Income Brackets When executing Roth conversions, managing IRMAA (Income-Related Monthly Adjustment Amount) brackets is crucial. These Medicare-related income thresholds affect surcharges and must be carefully considered when determining conversion amounts in any given year to avoid unintended tax consequences. ## Advisor Role in Inheritance Planning Financial advisors supporting clients who recently inherited wealth should avoid rushing into planning recommendations. Proper handling of 'heirs' property' issues and execution of legal documents—especially with multiple heirs—are critical steps that require careful navigation before implementing financial strategies. ## 10-Year Lessons from Advisory Firm An advisory firm founder reflects on the challenges of transitioning from 'growth' to 'maintenance' mode after a decade in business. Analyzing 11 years of revenue and expense data helps identify future decision points and tradeoffs required to sustain the practice through different lifecycle stages. ## Refining Ideal Client Profiles One founder shares 7 key lessons from years 3-5 of running an advisory firm, emphasizing time management and narrowing ideal client personas. This focus enabled more efficient service delivery and better alignment between the firm's capabilities and client needs. ## Sources covering this story - https://feeds.feedblitz.com/~/967301228/0/kitcesnerdseyeview~Weekend-Reading-For-Financial-Planners-August-%e2%80%93/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._