Pass-thru or corp — a key decision for RIAs; talking to clients about investment timelines; next-gen saving habits

PRACTICE MANAGEMENT: With the number of registered investment advisory firms at an all-time high, more financial advisors face a decision about what business entity to file as at the state and federal levels.

Nearly three-quarters of firms have chosen to be pass-through entities that are limited liability companies, limited partnerships or partnerships, and just over a quarter elected to be corporations, according to the latest annual RIA snapshot report from the Investment Adviser Association , an industry trade group, and compliance firm COMPLY . 

The type of business entity used by RIAs affects their taxes and any potential future M&A deals, according to experts.

Read: Business entities affect taxes and M&A — how RIAs weigh the choice

CLIENT MANAGEMENT: Getting advisory clients to focus on a longer time frame for their investments can be challenging in the age of micro attention spans and instant gratification. But when applied correctly, it's a proven technique for maximizing returns.

How do financial advisors best communicate that idea to clients? We asked, and advisors around the country weighed in with how they operate. 

Read: What is the time frame in which you analyze an investment?

GENERATIONAL PLANNING: As millennials and members of Generation Z think about their future finances, they are looking to save as well as previous generations, but they face an economic climate that has seen two one-in-a-lifetime downturns.

Erika.com founder Erika Kullberg , a lawyer and personal finance expert with more than 21 million followers across social media platforms, said she is not surprised that younger generations' wealth is expanding. Millennials and Gen Zers are "actively seeking out opportunities to increase their wealth through various means," even though they're "facing formidable economic challenges such as student loan debt and stagnant wages relative to the rising cost of living," Kullberg said.

Read: How millennials and Gen Z are planning for their financial futures

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