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The IRS is launching plans with boosted technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships and large corporations.
Once fully implemented, the newly enhanced technology is more likely to catch higher-end tax issues within a few years, according to one expert.

Jeffrey Coolidge | Photodisc | Getty Images

The IRS is launching plans with boosted technology and artificial intelligence to collect unpaid taxes from higher earners, partnerships and large corporations, which could transform tax compliance or spark challenges for the agency, experts say. 
After past criticisms of low audit rates among the wealthy, the IRS on Friday renewed plans to focus on higher-end enforcement, including expanded use of AI to examine large partnerships, such as hedge funds, real estate investors, law firms and more.

The agency also re-shared its promise not to increase audits for Americans making less than $400,000 a year, along with safeguards for low to moderate earners who claim the earned income tax credit and have seen elevated audit rates.

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“Right now, you file a tax return and you play the audit lottery,” said Robert Kovacev, tax controversy partner at law firm Miller & Chevalier. “But with AI, the data is constantly being interrogated by the algorithm.”
Once fully implemented, the newly enhanced technology is more likely to catch previously missed higher-end tax issues, he said.

They can expect increased scrutiny from the IRS over the next few years.

Robert Kovacev
Tax controversy partner at Miller & Chevalier

“They can expect increased scrutiny from the IRS over the next few years,” said Kovacev. The change won’t be immediate, but within three to five years, “there will be a noticeable increase in audits of large partnerships, large businesses and high-net-worth families,” he said. 

‘More important than ever’ to keep tax records

Even if you’re not subject to increased IRS scrutiny, Kovacev said it’s “more important than ever” to stay organized with tax records, including receipts to support positions from past tax returns.

“Any taxpayer should be keeping their tax returns for at least seven years,” he said, noting that it can be difficult to “reinvent the wheel” for an audit when you haven’t kept a paper trail.
Typically, there’s a three-year statute of limitations for an IRS audit, with extensions in some cases, but there’s no time limit when the agency pursues fraud or nonfilers. 

There’s IRS pressure to ‘show results’

While the technology may aid compliance efforts, the plan also presents risks for the agency, according to Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup.
“There’s obviously pressure on the administration to show results,” especially with the 2024 presidential election approaching amid continued scrutiny of the IRS funding.
“They’re going to press for getting those points on the board,” Everson said. “But at the same time, they can’t afford a big mistake here.” 
Despite more funding, enforcement staffing remains a challenge for the agency, which is a key piece of compliance. “The higher-end will fight back if they feel that things are being done improperly,” he said. More

Financial advisors play a key role in the lives of their clients as they help align their money with life goals.
Of course, finding that financial advisor who is the right match for you comes with its own set of challenges.
It’s important to find a financial advisor you trust. Doing so comes down to engaging in some research and homework, interviewing several advisors, and asking the right questions.

Undefined | Mint Images Rf | Getty Images

OK, not all financial advisors wear capes. But many are superheroes to their clients.
Advisors, however, do wear many hats because they play a key role in the lives of their clients as they help align their money with life goals. An advisor is someone who will help you cultivate confidence with your finances.

In addition to providing financial guidance, a large part of a financial advisor’s career is managing the client relationship. Indeed, financial professionals say they spend a great deal of their time playing the role of therapist, dealing with marital distress and serving as an emotional confidant to clients.

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As a financial journalist, I have covered personal finance and the financial advisory industry for more than 25 years. I have met countless financial professionals along the way and have made connections with many advisors. The bottom line: I am bullish when it comes to financial advisors.
Let me share a personal story to explain why.

Advisors can be a first line of financial defense

About 20 years ago, my wife passed away at the age of 44 after a three-year battle with cancer. I became a single dad to my then 14-year-old son and 10-year-old daughter.
A day or so before my wife’s funeral, I received a package from my insurance company. It contained a total control account document detailing the settlement options offered to me.

A few hours later, I got a call from my insurance agent. He started to explain the options and basically was urging me to up my insurance to protect my kids since I was now a single parent.
My head was spinning, and I told the agent the timing was not right to discuss this. My financial advisor attended the funeral services, and I told him about the conversation I had with my insurance agent.
He asked for the agent’s name and phone number. After a bit of back-and-forth, I passed it along.

A few days later, I discovered my advisor called the agent and told him to leave me alone and to allow me my space to grieve and to take care of my kids.
He told me to put the insurance paperwork away and, when the time was right, we could go over my options together when I was ready. He took the time to help me, with no financial benefit for him.
To be sure, your relationship with an advisor can bring valuable insight that can go beyond money issues.
But when it comes to money and reaching your financial goals, it’s a comfortable feeling having a trusted financial professional by your side. Because let’s be honest: creating a personal financial game plan can be daunting.
There are so many investment options, all of which carry some form of risk. And, of course, there are many types of retirement plans to choose from, each with their own set of tax consequences.

Gerenme | E+ | Getty Images

The seemingly endless number of choices can make it overwhelming for many investors.
The bottom line is that there’s an overload of investment possibilities. And, for many, planning and managing those options can be complicated. That’s why it makes sense to turn to a financial professional for guidance.
Of course, for some, do-it-yourself investing holds significant appeal. Many of these investors are perfectly capable of self-managing their own portfolios. However, other investors feel they need to hire a financial expert to create a game plan to meet their specific financial and life goals.
Basically, financial planning is the process of aligning your financial resources with your most important goals in life. Everyone needs at least a basic plan regardless of their net worth situation or their stage of life.

How to find the right advisor match

Of course, finding that financial advisor who is the right match for you comes with its own set of challenges. And since an advisor can play a key role in helping you grow and protect your wealth, it’s important to find one you trust and who will help you achieve your personal financial goals.
There are so many things to consider before choosing an advisor. The services provided by financial advisors will vary based on the type of advisor, but overall, a financial advisor will assess your current financial situation — including your assets, debt and expenses — and identify areas for improvement.
A good financial advisor will ask you about your goals and create a plan to help you reach them. That may mean discussing your budget, retirement planning, estate planning, insurance needs or tax strategies.

Financial advisors also help invest your money, either by recommending specific investments or providing complete investment management. Again, it varies from advisor to advisor.
And contrary to common belief, financial advice isn’t just for the wealthy. In fact, the right guidance early in anyone’s financial life can have the biggest impact on long-term financial success.
That’s why it’s so important to find a financial advisor you trust. Doing so comes down to engaging in some research and homework, interviewing several advisors, and asking the right questions.
When you find that right advisor, you can forge a new relationship that hopefully will last for a long period of time. More

Just 37% of U.S. adults are interested in using AI tools such as ChatGPT to help them manage their money, a new CNBC survey has found.
“Most people who are consulting these resources are verifying what they hear with a financial advisor,” said Kevin Keller, president of the CFP Board.

Most Americans have never used ChatGPT. The majority aren’t interested in using generative artificial intelligence tools specifically for financial advice, either, according to a new CNBC Your Money Survey — at least not yet.
Slightly more than one-third of U.S. adults — 37% — are interested in using AI tools to help them manage their money, the CNBC survey found. The survey, conducted by Survey Monkey, also found that 11% are “very interested” and 4% already use AI tools for money management.

“What we learned, though, was most people who are consulting these resources are verifying what they hear with a financial advisor,” said Kevin Keller, CEO of the CFP Board, a professional organization for certified financial planners.

More from FA 100:

Here’s a look at more coverage of CNBC’s FA 100 list of top financial advisory firms for 2023:

A recent CFP Board survey found that about half of adults — 51% — have little or no trust in financial advice from AI tools, such as ChatGPT and Google Bard, and only 31% are comfortable implementing financial advice from a Generative AI-powered tool without verifying it with another source.
“When I am not feeling well, I’ll look up [symptoms] online before I go to my doctor, and I think it’s the same kind of thing,” Keller said. “People feel comfortable verifying the information.”
“We think the best advice is digitally enabled, but yet human delivered.”
People can check out their options for managing and investing money online or on an app — but when it comes to making important decisions about their money, many prefer to talk it out with a financial advisor.

“Financial planners are helping clients make good money decisions about the most important things in their life, like retirement, buying a house, funding college for their kids [or] starting a business,” said certified financial planner James Lee, founder and president of Lee Investment Management in Saratoga Springs, New York.
“These conversations happen over the course of a lifetime, are deeply personal and cannot be answered by just typing in a question to Chat GPT,” said Lee, who is also president of the Financial Planning Association, the largest professional organization for financial planners.
The CFP Board survey also found that investors demonstrate more confidence in advice from AI tools after vetting it with a financial planner.
“The way I like to explain it is until my computer can hand a tissue through the computer screen to my client,” Lee said, “I don’t fear that I will be replaced.”
Correction: Kevin Keller is CEO of the CFP Board, a professional organization for certified financial planners. Incorrect information appeared in an earlier version of this story.
Tune in to CNBC’s “The Exchange” at 1pm ET today to see Mason King of Luther King Capital Management, which earned the top spot on the CNBC FA 100 list for the first time this year. More

The CNBC FA 100 ranking, which takes into consideration a variety of factors beyond assets under management, recognizes those advisory firms that help clients navigate through their financial life.

The fifth annual CNBC FA 100 ranking recognizes advisory firms that help clients successfully navigate their financial lives.
Working with an advisor is a great choice for anyone who wants to get their personal finances on track and set long-term objectives.
The CNBC FA 100 ranking of advisors for 2023 takes into consideration factors beyond just assets under management.

Finding the right financial advisor to help with your financial needs and goals can be a very complicated process.
There are so many things to consider.

For example, every financial advisor has their own area of expertise. The services provided by financial advisors will vary based on the type of advisor but, overall, a financial advisor will assess your current financial situation — including your assets, debts and expenses — and identify areas for improvement.
Advisors use their knowledge and expertise to construct personalized financial plans that aim to achieve the financial goals of clients. A good financial advisor will ask you about your life goals and create a plan to help you reach them. That may mean discussing your budget, retirement planning, estate planning, insurance needs, long-term care or tax strategies.
A financial advisor can play a major role in helping clients grow and protect their wealth. The key is to find an advisor you trust, and it’s important to make sure they are someone who is a good match for you.
To be sure, financial advisors aren’t just for rich people — working with an advisor is a great choice for anyone who wants to get their personal finances on track and set long-term objectives. The CNBC ranking is meant to be a starting point for individual investors who are looking for a financial advisor. We hope this list will help to narrow your search.
For the fifth year in a row, CNBC unveils its ranking of top financial advisors. The CNBC FA 100 recognizes those advisory firms that best help clients navigate their financial lives.
Review the methodology which CNBC employed to determine the FA 100 ranking for 2023 in collaboration with AccuPoint Solutions. (Editor’s note: CNBC receives no compensation from placing financial advisory firms on our list. Additionally, an advisor’s appearance on our ranking does not constitute an individual endorsement by CNBC of any firm.)

2023 FA 100 List

2023 RANK
FIRM
HQ
TOTAL AUM
YEARS IN THE BUSINESS
ACCOUNTS UNDER MANAGEMENT
2022 RANK

1
Luther King Capital Management
TX
$25.3B
44
3,600
32

2
Heritage Investment Group
FL
$1.5B
30
2,002
4

3
Eubel Brady & Suttman
OH
$1.8B
29
1,760
–

4
Leavell Investment Management
AL
$2.4B
44
2,400
7

5
Dana Investment Advisors
WI
$6.9B
43+
1,490
2

6
Parsons Capital Management
RI
$1.6B
30
1,734
12

7
Beaird Harris
TX
$1.3B
27
2,852
44

8
Halbert Hargrove Global Advisors
CA
$2.7B
34
4,240
8

9
The Burney Company
VA
$2.5B
49
4,229
9

10
Sheaff Brock Investment Advisors
IN
$1.2B
22
1,947
68

11
Pittenger & Anderson
NE
$2.4B
28
1,974
13

12
Godsey & Gibb Wealth Management
VA
$1.2B
38
1,705
22

13
Wetherby Asset Management
CA
$7.2B
33
603
20

14
Avity Investment Management
CT
$1.5M
53
761
29

15
Phillips Financial
IN
$1.7B
19
2,648
24

16
Acropolis Investment Management
MO
$2.1B
20
4,030
21

17
First Foundation Advisors
CA
$5.3B
33
4,054
33

18
Chilton Capital Management
TX
$1.8B
27
1,747
–

19
ML&R Wealth Management
TX
$2B
26
3278
73

20
Traphagen Financial Group
NJ
$1.1B
25
1,720
–

21
Ferguson Wellman Capital Management
OR
$7.7B
48
969
17

22
Sage Financial Group
PA
$3B
34
3,567
63

23
RTD Financial Advisors
PA
$2B
40
712
18

24
SJS Investment Services
OH
$2.1B
28
919
–

25
Madison Wealth Management
OH
$1.1B
23
2,495
–

26
Quest Investment Management
OR
$1.5B
38
93
–

27
Salem Investment Counselors
NC
$3.7B
44
2,600
6

28
Sawgrass Asset Management
FL
$2.1B
25
227
–

29
Retirement Resources Investment Corporation
MA
$1.3B
17
249
–

30
California Financial Advisors
CA
$1.6B
25
3,216
27

31
Woodley Farra Manion
IN
$1.6B
28
1,156
1

32
E. S. Barr & Co.
KY
$1.5B
30+
848
86

33
H.M. Payson & Co.
ME
$6.3B
169
3,750
35

34
YCG Investments
TX
$1.2B
16
247
–

35
Scharf Investments
CA
$4.3B
40
6,381
–

36
Van Hulzen Asset Management
CA
$1.4B
22
2,222
–

37
Sage Advisory Services
TX
$15.3B
26
4,888
–

38
Southeast Asset Advisors
GA
$3.2B
30
1,296
–

39
YHB Investment Advisors
CT
$1.5B
33
2,660
–

40
ZWJ Investment Counsel
GA
$3.5B
41
1,900
38

41
Albion Financial Group
UT
$1.5B
41
2,288
3

42
Ami Asset Management
CA
$1.5B
28
1,260
–

43
Lee, Danner & Bass
TN
$1.5B
35
950
10

44
NorthStar Asset Management
MA
$670M
32
503
–

45
Zevenbergen Capital Investments
WA
$4.3B
36
243
36

46
Foster & Motley Wealth Management
OH
$2B
26
816
42

47
Southern Wealth Management
TX
$2.3B
18
2,061
43

48
Thompson Investment Management
WI
$2.4B
19
779
–

49
Trumbower Financial Advisors
MD
$1.6B
27
167
–

50
Wilbanks, Smith & Thomas Asset Management
VA
$5.2B
32
5,275
45

51
Steele Capital Management
IA
$2.3B
27
3,911
49

52
Wedge Capital Management
NC
$8.1B
36
258
–

53
Eagle Global Advisors
TX
$1.9B
26
400
51

54
Roffman Miller Associates
PA
$2.4B
32
1,300
54

55
J.M. Forbes & Co.
MA
$1B
63
932
–

56
Professional Advisory Services
FL
$1B
46
1,169
15

57
Paragon Capital Management
CO
$1B
33
737
–

58
Tanglewood Total Wealth Management
TX
$1.2B
45
1,252
–

59
D.F. Dent & Co.
MD
$8.5B
47
1,350
93

60
Conrad Siegel Investment Advisors
PA
$6.9B
21
873
70

61
Lee Financial
TX
$1.2B
48
3,500
53

62
Frank, Rimerman & Co.
CA
$1.7B
21
356
–

63
Guyasuta Investment Advisors
PA
$2B
40
1,350
37

64
JMG Financial Group
IL
$4.5B
38
4,560
61

65
Marble Harbor Investment Counsel
MA
$1B
17
506
–

66
Evergreen Capital Management
WA
$3.8B
39
2,659
–

67
Bloom Advisors
MI
$1.2B
39
1,165
–

68
Manchester Capital Management
VT
$3.7B
30
271
23

69
Palisade Capital Management
NJ
$4.2B
33
2,199
56

70
Austin Asset
TX
$1.4B
36
425
–

71
Prio Wealth Management
MA
$3.2B
35
1,765
–

72
Stack Financial Management
MT
$1.8B
29
1,526
–

73
Azzad Asset Management
VA
$1.3B
26
1,528
25

74
WBH Advisory
MD
$1.1B
37
2,121
–

75
Jackson Thornton Asset Management
AL
$1.5B
24
927
88

76
David Vaughan Investments
IL
$3.9B
46
3,520
40

77
Obermeyer Wood Investment Counsel
CO
$1.8B
25
2,344
–

78
Legacy Wealth Management
TN
$1.9B
41
4,214
75

79
Private Management Group
CA
$4B
38
2,500
–

80
Northside Capital Management
OR
$4.6B
24
514
–

81
Thompson, Siegel & Walmsley
VA
$17.5B
53
4,952
–

82
FCI Advisors
KS
$12.8B
29
13,818
–

83
Index Fund Advisors
CA
$4.7B
24
2,442
66

84
Congress Asset Management
MA
$10B
38
6,423
–

85
Natural Investments
CA
$1.8B
38
4,100
–

86
Wacker Wealth Partners
CA
$1.1B
35
707
–

87
Henssler Financial
GA
$2.8B
36
4,001
83

88
Highland Capital Management
TN
$3.5B
36
850
–

89
Alta Capital Managementl
UT
$1.4B
42
1,572
–

90
Fiduciary Advisors
MO
$1.1B
23
349
–

91
Endurance Wealth Management
RI
$1B
14
778
–

92
Gibson Capital
PA
$2B
34
1,000
–

93
Turtle Creek Management
TX
$3.1B
17
505
–

94
Wingate Wealth Advisors
MA
$1B
37
645
74

95
The Financial Advisory Group
TX
$1.1B
26
2,300
90

96
R.M. Davis
ME
$5.7B
45
5,599
–

97
Confluence Investment Management
MO
$6.9B
15
17,616
–

98
Richard C. Young & Co.
FL
$1.3B
34
1,963
26

99
Investment Consulting Group
IA
$2.1B
33
766
–

100
Charles D. Hyman & Co.
FL
$2.1B
29
956
80 More

Luther King Capital Management came in at No. 1 on CNBC’s list of the top 100 financial advisors in the U.S. for 2023.
The key to successfully navigating the recent ups and downs is the ability to stay focused on the longer term, according to the firm’s principal, Mason King.
“We’re not trying to get a lot of short-term gains,” King said. “That’s our discipline and our philosophy.”

Mason King
Courtesy: Mason King

More than a year of recessionary forecasts have created “a highly unusual market,” said Mason King, a principal of Luther King Capital Management in Fort Worth, Texas, which ranked No. 1 on CNBC’s list of the top 100 financial advisors in the U.S. for 2023.
As a whole, the current climate has created as diverse an outlook as we’ve ever seen, he noted, even according to his father —  J. Luther King Jr. —  who has been in the business for 60 years.

Although some experts have more recently backed off those earlier predictions of an impending recession and embraced the idea of soft landing, “that’s been the most consensus we’ve seen,” he added.

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Here’s a look at more coverage of CNBC’s FA 100 list of top financial advisory firms for 2022:

Recent data is still painting a mixed picture of where the economy is headed, with overall growth holding steady as consumers continue to spend, but the labor market beginning to loosen from historically tight conditions.
At the same time, inflation has shown signs of cooling even though it remains well above the level where Federal Reserve policymakers feel comfortable, which has reignited fears that the central bank may have more work ahead.
“What we would like to see is more confidence in the economic outlook,” he said. “That would give us more peace of mind that we’re in more of a bull-market scenario longer term.”
“The counterweight is if the lag effects of monetary restriction start to take a larger bite out of economic activity, you could see a more challenging market,” he added.

For now, King said he remains cautious about predicting where the economy will ultimately settle.
“It takes 12-18 months for a single rate increase to flow through the marketplace, and we are only 15 months into the first rate increase,” he said.
Altogether, Fed officials have raised rates 11 times, pushing the key interest rate to a target range of 5.25% to 5.5%, the highest level in more than 22 years. 
“Exactly how much market activity has already been drained and how much is still ahead of us, nobody knows,” King said.

Still, there is plenty of upside potential for investors, particularly in technology and energy stocks, he added.
But rather than pile on to the “Magnificent Seven” — referring to Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla, which accounted for a disproportionate amount of the returns year to date — small- and mid-cap growth companies, which tend to be more cyclical, have attractive valuations and remain at a discount, he said.
“There are some great names to be found with great opportunities ahead.”

King’s top stock picks

Among his top picks are Trimble, Albemarle and Permian Resources. “They are going to continue to move forward and expand and their valuation is still trading a slight discount relative to their peers.”
To navigate the ups and downs, King says the firm maintains a longer time horizon, just like the companies they invest in. “We manage downside risk through the durability of the companies and their ability to manage during downturns.”

As a general rule, Luther King Capital Management commits to a three- to five-year holding period. “We’re not trying to get a lot of short-term gains,” King said. “That’s our discipline and our philosophy.”
King also credits the firm’s success to practicing what they preach. “We are our largest client,” he said. “We invest our balance sheet the way we invest for our clients.”
Luther King Capital Management has $25 billion under management and more than 3,000 clients.
Tune in to CNBC’s “The Exchange” at 1pm ET today to see Mason King of Luther King Capital Management, which earned the top spot on the CNBC FA 100 list for the first time this year. More

The fifth annual CNBC FA 100 list recognizes advisory firms that help clients navigate big financial decisions.
The CNBC FA 100 ranking weighs several factors beyond just assets under management.

Kate_sept2004 | E+ | Getty Images

Whether it’s navigating a stock market downturn, hawkish Federal Reserve policy or banking instability, we’re dedicated to helping consumers make smart money decisions.
But CNBC’s personal finance team also recognizes the value of professional advice and a comprehensive financial plan, regardless of life stage or level of wealth.

Our mission is the primary driver behind the CNBC FA 100 list, now in its fifth year, which ranks the nation’s top financial advisor firms.

More from FA 100:

Here’s a look at more coverage of CNBC’s FA 100 list of top financial advisory firms for 2023:

The FA 100 list uses proprietary methodology created by CNBC in partnership with data provider AccuPoint Solutions. The process begins with SEC filings for 40,646 registered investment advisory firms before narrowing down the list. You can see the full methodology here.
These top-ranked advisors average 30 years in the business and collectively manage more than $300 billion — but experience and assets under management aren’t the list’s primary criteria.
The CNBC FA 100 highlights firms that help clients navigate decisions beyond their investment portfolio. In crafting the list, we weighed each firm’s services and specialties, among other factors. We also considered the firms’ number of certified financial planners, which is widely recognized as one of the industry’s top professional designations.

The benefits of working with a financial advisor

The majority of Americans say their finances need improvement and many believe working with an advisor boosts their confidence for long-term financial stability, retirement and other priorities, according to Northwestern Mutual’s 2023 planning and progress study.  

While there’s a growing interest in financial advice via generative artificial intelligence, most investors don’t trust what’s provided without verifying the information, the Certified Financial Planner Board’s latest consumer sentiment survey found.  
Many investors think they can do it themselves when the market is continually rising, says Kevin Keller, CEO of the CFP Board. However, “it’s that volatility where I think the value of a CFP professional or a professional advisor really makes a difference,” he added.

It’s that volatility where I think the value of a CFP professional or a professional advisor really makes a difference.

Kevin Keller
CEO of the Certified Financial Planner Board

After more than a year of bleak forecasts for the U.S. economy, some experts have backed off recession predictions and pointed to the soft landing targeted by the Federal Reserve. But there’s a risk of becoming complacent about future market volatility.
And uncertainty can trigger the desire for personal changes. Nearly 60% of consumers planned to adjust 2023 financial goals due to the economic environment, according to a Goldman Sachs survey conducted in October 2022.   
Whether you’re motivated by the current economy or need guidance for major life decisions, there’s a wide range of financial advice available, regardless of your income or investable assets. Of course, the cost and scope of services varies by advisor or firm, so diligence is critical throughout the selection process.

10 questions to ask your next financial advisor More

The methodology for the 2023 edition of CNBC’s annual FA 100 ranking of registered investment advisors was prepared in partnership with data provider AccuPoint Solutions.
A variety of core data points from AccuPoint Solutions’ database of RIAs were analyzed, ranging from the firm’s compliance record and years in business to total accounts and assets under management.

Rosshelen | Istock | Getty Images

CNBC enlisted data provider AccuPoint Solutions to assist with the ranking of registered investment advisors for this year’s FA 100 list.
The methodology consisted of first analyzing a variety of core data points from AccuPoint Solutions’ proprietary database of registered investment advisors. This analysis started with an initial list of 40,646 RIA firms from the Securities and Exchange Commission regulatory database. Through a process, the list was eventually cut to 812 RIAs with those firms meeting CNBC’s proprietary criteria.

CNBC staff sent an extensive email survey to all those firms that met the initial criteria to gather more details. In turn, those advisory firms filled out a comprehensive application in regard to their practice. The CNBC team verified that data with those firms and with the SEC regulatory database. AccuPoint once again applied CNBC’s proprietary weighted categories to further refine and rank the firms, ultimately creating the list of the top 100 firms.

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CNBC receives no compensation from placing financial advisory firms on our list. Additionally, an advisor’s appearance on our ranking does not constitute an individual endorsement by CNBC of any firm.
The primary data points used in the analysis were reviewed, either as a minimum baseline or within a range, eliminating those firms that did not meet CNBC’s requirements. Once the initial list was compiled, weightings were also applied accordingly. These data points included:

Advisory firm’s regulatory/compliance record. (editor’s note: Each advisory firm’s CRD number was checked for validity. Any firm that had a disclosure on its SEC ADV was automatically disqualified from the ranking)
Number of years in the business.
Number of certified financial planners.
Number of employees.
Number of investment advisors registered with the firm.
The ratio of investment advisors to total number of employees.
Total assets under management.
Percentage of discretionary assets under management.
Total accounts under management.
Number of states where the RIA is registered.
Country of domicile.

Tune in to CNBC’s “The Exchange” at 1 p.m. ET today to see Mason King of Luther King Capital Management, which earned the top spot on the CNBC FA 100 list for the first time this year. More

Life Changes

Social Security pays retirement income to almost all U.S. seniors.
The Old-Age and Survivors Insurance trust fund is scheduled to run out of money in 2033.
At that time, retirees would still get a check but it would be about 77% of promised benefits.

MoMo Productions

The following is an excerpt from “This week, your wallet,” an audio program produced by CNBC’s Personal Finance team. Listen to the latest episode here.
Social Security is the largest federal program in the U.S. The vast majority of older Americans get Social Security benefits, which either partially or even fully fund their income in retirement.

Yet the program faces solvency issues.
“Its overall health has implications for virtually every American,” said David Blanchett, head of retirement research at PGIM, the asset management arm of Prudential Financial.
Here are four takeaways from a recent conversation about Social Security’s future with Blanchett; Doug Boneparth, a certified financial planner and founder of Bone Fide Wealth in New York; and CNBC personal finance reporter Lorie Konish.

1. Social Security is ‘America’s pension safety net’

Virtually every retiree receives some sort of guaranteed income stream — and Social Security is “by far” the most prominent of these income sources, Blanchett said.
About 97% of Americans age 60 and older either receive or will collect Social Security benefits, according to Social Security Administration data. Among elderly Social Security beneficiaries, 37% of men and 42% of women get at least half of their income from the program, according to a 2021 SSA report using data from 2015.

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Social Security is “America’s pension safety net,” Blanchett said.
“It’s really difficult to understate its importance, especially when it comes to providing income during retirement,” he added.
The average benefit for retirees, as of June, was $1,837 a month.
About 67 million Americans get a Social Security check each month. Most, but not all, are retirees — disabled workers, surviving spouses and dependents are among the others who can collect.  

2. Demographics are stressing the program’s finances

Social Security’s finances are under pressure.
Beneficiaries are living longer, meaning the program pays recipients over a longer period of time. And about 10,000 baby boomers are retiring every day. The share of workers paying into the system (via payroll taxes) has been falling relative to the number of beneficiaries, creating an imbalance.
As a result, without any action from lawmakers, the Old-Age and Survivors Insurance trust fund that supports Social Security benefits for retirees is estimated to run dry in 2033.

3. Social Security won’t go away, but there may be cuts

If the trust fund is depleted, it doesn’t mean benefits would go away. Workers would continue to pay Social Security payroll taxes, and those collected funds would still be payable to retirees.
However, there would be cuts — about 77% of promised benefits would be payable if the trust fund runs out, according to the SSA.

4. There will be ‘losers’

Congress will almost surely tweak Social Security to fix the solvency problem.  
Potential fixes might include reducing benefits, delaying the “full retirement age,” raising taxes on benefits, increasing the financial penalties for claiming Social Security before full retirement age or a combination of these and other factors.
It’s likely to be a “last-second compromise” and “there are going to be losers,” Blanchett said.
Congress likely wouldn’t make changes that would negatively affect Americans in or near retirement, however.

“I’d be shocked if we enter a place where grandma and granddad, for example, will have their benefits cut,” Blanchett said.
“But I do believe younger Americans — if you’re maybe in your 40s — should count on a lower benefit,” he added.
In financial plans, Boneparth — who specializes in millennial and Generation Z clients — illustrates the additional savings and investments that would be needed to fund a lifestyle if Social Security benefits were cut from their current form.
“We’re all trying to get an educated guess … of what things are going to look like in the future,” Boneparth said. “No matter how educated that guess is, it’s very, very difficult to do that.” More