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Definitions matter. We learn this in elementary school, if not before, as we are tested on our ability to connect vocabulary words to brief descriptions. Then, the definitions feel absolute, unambiguous, and concrete. However, as we develop and progress into reality, we realize that definitions are relative, ambiguous, and abstract in many instances of life. This situation is the case and, therefore, the plight of the investment advisor.

While this subject could take many forms and pursue different avenues, we will focus on Equity allocations within portfolios.

First up: equity capitalization.

Financial planning has always been an essential part of personal financial success. As artificial intelligence (AI) improves, its potential to change financial planning grows. For financial planners, understanding AI-driven tools is necessary to improve client services, improve decision-making, and remain competitive. This article will explore emerging trends, challenges, and opportunities of AI in the financial planning industry.

AI can improve financial planning by automating tasks, providing predictive analytics, and improving risk assessment. AI-driven tools allow planners to offer more personalized and data-driven visions, increasing their advisory services. The rise of robo-advisors and AI-powered analytics is changing the industry. While these technologies can increase efficiencies, they do not replace human expertise. Instead, financial planners integrate AI into their workflows to enhance decision-making, streamline operations, and offer a hybrid human and machine intelligence model.

The comments in this article are inspired by the keynote address of Aaron Klein at the recent Fearless Investing Summit in Nashville, TN. For those in the advising community who know Aaron, he is incredibly passionate about the RIA space. He is the co-founder of Riskalyze, which has recently rebranded to Nitrogen. He presented five great ideas to help financial advisors be forward thinking, and they deserve repeating and sharing with a broader audience.

We have entered a world where stakeholder capitalism is on full display, and it should be no wonder when investors call for investments in a social cause. Whether through the lens of ESG, sustainability, or green-specific investments, there has been an increase in understanding and demand. However, it is important to consider not just the investment but also the investor and their needs. After all, with the rise of social media, a company could find themselves in the middle of a culture war in no time and could be trending online with millions of impressions in mere minutes! If this could have a statistical significance on stock price, it is important to consider the risk companies pose when they speak out!

Life insurance and financial services companies faced a tough business climate over the last several years ― from the fallout of the pandemic, to rising interest rates and inflation, to the increased use of technology, to heightened customer expectations. LIMRA spoke with industry executives to see how their companies are handling these challenges and what they see for the future.