Financial advisers are eager to use generative AI and similar technologies, but many are hesitant due to regulatory and compliance concerns, according to a survey by Financial Planning. Robert Cruz of Smarsh notes that existing regulations are outdated and unclear regarding AI, and while the Securities and Exchange Commission has considered new rules, it has thus far mostly relied on existing ones. Advisers are using AI for tasks like client meeting preparation but are cautious about using it for investment recommendations.

The qualified business income (QBI) deduction has become a permanent part of the tax code with passage of the One Big Beautiful Bill Act, requiring advisers to master its complex calculations, writes Claire Thornton, CFP®, EA. The deduction allows eligible taxpayers to deduct up to 20% of qualified business income from pass-through entities, with specifics depending on business type, income level, wages and property basis, and advisers can optimize planning opportunities for clients by understanding the deduction's mechanics. Read the Journal article now.

The One Big Beautiful Bill (OBBB) Act is a sweeping $3.4 trillion tax and spending package that introduces major changes for individuals, including expanded deductions for state and local taxes, new deductions for auto loan interest and tip income and a $6,000 personal exemption for seniors, write Randy Gardner, J.D., LL.M., CPA, RLP®, CFP®, AEP, and Julie Welch, CPA/PFS, CFP®, AEP. The two experts take a deep dive into the bill, which also extends several provisions from the Tax Cuts and Jobs Act, increases the child tax credit and estate tax exemption and launches new savings programs for children. Read the Journal article now.

Long-term planning is crucial for minimizing the effects of disasters, as insurance coverage is becoming more expensive and harder to obtain in high-risk areas, writes Jeffrey Fishman, founder of JSF Financial. Property owners should evaluate their insurance needs based on coverage rather than price, keep track of valuable items and consider the potential costs and challenges of rebuilding after a disaster, Fishman writes.

Women who are not involved in household finances face a range of financial challenges during and after divorce, according to a BMO Wealth Management survey. Only 36% felt confident managing finances during divorce, and 40% received lower settlements than expected. However, nearly all women who work with financial advisers report improved confidence post-divorce.

Wealth management firms should adopt business process management and Business Process Model and Notation to address operational complexity, scalability and regulatory demands, writes John O'Connell, founder and CEO of The Oasis Group. While 72% of firms are confident they can implement digital transformation, only 30% are leaders in digital capabilities. BPM and BPMN offer a structured approach to workflow optimization, making processes more efficient and adaptable, and are essential for integrating technologies such as artificial intelligence and robotic process automation, O'Connell writes.

Financial advisers often neglect succession planning, leaving their practices vulnerable to unforeseen events. Jeff Concepcion, founder and CEO of Stratos Wealth Holdings, attributes this to psychological barriers, perceived difficulty and unrealistic valuations. With 100,000 advisers expected to retire in the next decade, and a significant wealth transfer on the horizon, succession planning is more critical than ever, Concepcion writes.

Making certain mistakes with IRAs can lead to accidental double taxation, write Robert Bloink and William Byrnes. They discuss situations in which accounts include both deductible and nondeductible contributions. "Clients are responsible for tracking IRA basis on Form 8606, which must be filed with the Internal Revenue Service if they made any nondeductible contributions to an IRA for the year, or if they received a distribution from an account that had a basis greater than zero," they note.