Tyler is a strategic account manager in the Canadian market. A graduate of McMaster University, Tyler has spent his 17 years helping businesses find the best technology solutions for their workflows, employees, and clients.
In financial services, examining empirical statistics is the crux of major decision-making. With the first quarter coming to a close, here are three key statistics that will be paramount to advisors as they fine-tune their strategy for the remainder of the year.
Did that number get your attention? This statistic may already be familiar, as it has received a lot of media attention in recent years. Regardless, it is still a number that should be top-of-mind for any advisor today.
Thanks to the massive amount of individuals in the baby boomer cohort, $30 trillion is expected to be passed to younger generations over the next 20 or 30 years. This phenomenon, known more commonly as the great wealth transfer, offers an important opportunity for advisors to expand their book of business by offering their expertise — especially advisors who properly utilize planning in their practice.
For retired high-net-worth (HNW) and ultra-high-net-worth (UNHW) investors, transferring their wealth to their children becomes a greater focus. Opening up those conversations about wealth transfer — even for those clients who are still in pre-retirement — can offer advisors the opportunity to bring younger family members into their practice. Consequently, advisors will develop a pipeline for future HNW clients who will be inheriting their parents’ wealth.
According to the 2017 US Trust Insights on Wealth and Worth report, 82 percent of families are not talking to their advisors about how to transfer their wealth. This is a massive opportunity for advisors who can properly broach the subject and offer intelligent direction and advice.
In the Advisor Authority 2017 report, 37 percent of HNW and UHNW investors indicated that they do not have a financial advisor. This represents a significant amount of wealth that is not professionally managed today. Is every investor meant to work with an advisor? Maybe not. But it would seem that for a significant portion of that 37 percent, an advisor’s services could offer value above and beyond what they can manage on their own.
What is important to HNW and UHNW investors? Protecting their assets, healthcare costs, and taxes are among their top concerns. Focusing on these topics in your communication efforts and initial conversations may be the key to easing whatever apprehension these “go it alone” HNW clients have in using professional advisory services.
According to Cerulli Advisor Metrics, about four out of five advisors surveyed said that their clients chose them primarily for their planning capabilities. This aligns with what I hear anecdotally from many successful advisors that I have talked to – planning works.
I recently met with an enterprise organization who told me that their organizational goal for 2018 is to double the number of financial plans that they delivered last year. They are pushing this goal with their advisors because their internal analytics conclude that advisors who do more plans are more successful.
As you begin to refine your goals for 2018, remember to include number of delivered plans. Target an ambitious number of delivered plans and follow through by encouraging your clients to go through a plan or update a plan; evidence shows that an advisor will achieve greater AUM and a more satisfied group of clients when doing so.
To learn how Advicent technology will empower you to better serve HNW clients, click here.