Many advisors today claim to provide a comprehensive, 360-degree view of their clients' financial lives. However, the pressing question remains—are these advisors genuinely delivering holistic advice that transcends asset and investment management, enhancing client relationships and experiences, or is it just empty rhetoric?
The demand for more modern and thorough financial planning is definitely on the rise. A recent McKinsey & Company report reveals that client interest in a "one-stop-shop" for all financial needs surged by 60 percent from 2018 to 2023. This dramatic increase underscores the growing desire among clients for integrated financial solutions that address the full spectrum of their financial challenges and goals.
In response to this trend, many registered investment advisors (RIAs) have started integrating wealth-adjacent services like tax optimization into their practices. In fact, a Fidelity study found that 83 percent of firms managing less than $1 billion in assets had adopted optimized tax strategies, signaling the growing commoditization of these once-niche services.
To distinguish themselves in an increasingly crowded industry, RIAs need to venture beyond the “basics” and provide life-centric services. Here are three specialized offerings that can set an advisor’s practice apart, providing genuine value to clients.
Board Of Director Planning
One way that RIAs can stand out is by positioning themselves as trusted partners during the goal-setting process, particularly when clients express interest in pursuing board seats in organizations or companies. This aspiration can stem from various motivations, such as the client approaching retirement age or seizing opportunities created by corporate buyouts. Advisors can play a pivotal role in guiding clients through this journey by leveraging their industry connections and providing insights into the responsibilities associated with board positions.
It is essential to discuss the nuances of board membership, including the various compensation structures (salary or stock, for instance) and the obligations that come with such roles. By helping clients build meaningful connections and navigate these critical career milestones, advisors can enhance retention rates and encourage referrals—while transforming the advisor-client relationship into one that is both rewarding and impactful.
Divorce Guidance
Divorce can be an emotionally and financially challenging process. For many clients, it marks a pivotal life transition that requires careful planning and guidance. Advisors who can skillfully support clients through the complexities of divorce have the potential to create lasting, positive impacts on their financial futures.
The financial ramifications of divorce extend far beyond splitting assets. For instance, how will alimony or child support affect long-term financial stability? What are the tax implications of asset division, and how can a client plan for post-divorce cash flow? Advisors with the specialization to guide clients through these questions can provide immense value.
Clients’ level of financial knowledge can vary greatly depending on their circumstances. Some clients may be deeply involved in the financial planning process, while others in a mediation scenario may be largely unaware of joint assets and financial arrangements. In both cases, the advisor’s role is critical. From income analysis to asset protection and title adjustments, tailored guidance can help clients make sound financial decisions and alleviate unnecessary stress during an already fraught period.
Executive Coaching
Assisting working professionals with their career trajectories can significantly impact both their personal and financial well-being. Through a series of in-depth discovery conversations, advisors can help clients develop comprehensive "road maps" to achieve their career aspirations.
For instance, a C-suite executive striving to become their company’s CEO may find themselves in a competitive situation. In this scenario, understanding their unique strengths and areas for improvement is crucial. Advisors can help clients to identify these elements and establish action plans to bolster their candidacies.
Similarly, clients facing layoffs may benefit from guidance in assessing their financial health and exploring entrepreneurial opportunities that align with their skills and passions. By offering this level of personalized coaching, advisors can significantly impact their clients' professional trajectories and overall well-being.
A Life-Centric Approach Adds Value
Truly holistic financial planning extends well beyond traditional wealth management strategies. It involves the advisor engaging in ongoing discussions with the client to grasp the full scope of their lives, goals and challenges—offering solutions that add real value to their unique personal and financial needs.
By providing specialized services like board-of-director planning, divorce guidance and executive coaching, advisors can position themselves as indispensable partners, acting as a coach to guide clients through important life transitions with confidence.
As traditional financial planning services increasingly become commoditized, offering life-centric advice can be a key differentiator to elevate an advisor’s practice, separating them from those merely flapping their gums.
Craig Robson, CFP, CIMA, CDFA, is founding principal and managing director at Regent Peak Wealth Advisors, an Atlanta-based registered independent advisor serving creators of significant wealth across the country.