Low cost investment providers such as Vanguard have commoditized investing, pushing wealth managers to broaden their scope to deliver value. When “S&P and chill” effectively summarizes a sensible approach to wealth building, what more is there for advisors to do? Just as Warren Buffett’s advice “be fearful when others are greedy, and greedy when others are fearful” is easy in concept, difficult in application, so is optimal wealth management.

Managing wealth effectively involves much more than selecting investments. It involves managing emotions, career, tax liabilities, and purpose. Growing advice practices have embraced all aspects of managing wealth using a holistic life coaching approach. Effective Advisors understand that there are just some needs the “S&P and chill” approach cannot address and seek to fulfill qualitative human needs.

______

About your Hosts

Ben Jones

Managing Director, National Wealth Management Group

www.nwmgadvisors.com

Author, www.karastick.com

@thekaratstick

https://www.linkedin.com/in/ben-nwmg/

__

Brent Gargano, CFPⓇ

Founder & Advisor, Infinite Wealth Planning

www.infinitewealthplanning.com

linkedin.com/in/brent-gargano-cfp®-2067b573

______

Sources

McKinsey & Company Wealth Management 2030 Study:

https://www.mckinsey.com/industries/financial-services/our-insights/on-the-cusp-of-change-north-american-wealth-management-in-2030

Summary:

• 420k advisors in the US and Canada
  • 80,000 are CFPs
• Advisors aging - down to 25% under 44 years old from 33% in 2010
  • 7,000 advisors expected to retire in the next 5 years
• Advisors will need to cater more to Millenials and Gen X as wealth transfers
• Planning is shifting to be more goal based, requiring the integration of behavioral coaching/mindset management
  • Only 39% of affluent families have a written financial plan
• Fees are shifting to be more subscription focused or ongoing vs one time and commissions
• Advisors are becoming more diverse - Women currently represent 33% but likely to be 50% over time, minorities currently 20% go to 40%, and 50% will be 30-40 years old
• Advisors will shift from investment managers to focus on insurance, banking, healthcare, protection, estate, and tax.
• Advisors will have more transparent user ratings, as opposed to word-of-mouth business
• Successful advisory firms will be able to leverage technology to drive costs down to remain competitive as automated options become more prevalent
  • 2 models that can win:
    • Broader servicing larger amounts of clients at scale
    • Hyper focused planning for HNW clients - currently 60% of the revenue generated by advisors

______

Follow our socials to support the podcast; see extra clips and announcements!

Instagram: https://www.instagram.com/moneyalchemistpod/

X: https://twitter.com/moneyalchpod

Facebook: https://www.facebook.com/profile.php?id=61556458987483

______

Editor

Trevor Gargano

Trevor@nwmgadvisors.com

https://www.linkedin.com/in/trevor-gargano-72727b67/

______

Disclosure:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Securities offered through LPL Financial, Member FINRA & SIPC.. Advisory services offered through National Wealth Management Group, LLC a registered investment advisor and separate entity from LPL Financial.