September 13th, 2021
During the late 80s, I worked on Wall Street for Drexel Burnham Lambert. I remember the investor intermediaries were then called “Stock Brokers” or “Brokers.” The Broker’s value proposition was access to information and the execution of trades. I remember the Brokers walking over to a wall that had a see-through tubing system that ran through the building, in which they “dropped” in the trades that needed to be executed.
During the late 1990s and 2000s I worked at Merrill Lynch. During this time in financial services, there was an evolution from Broker to “Advisor” and some to “Trusted Advisor.” Basically the value proposition of the Advisor or Trusted Advisor shifted to providing investment and/or planning advice and guidance to clients. Clients were (and still are) almost always defined as one or two decision makers; such as the husband and/or wife, whether they were a doctor, executive, or founder of a company.
In addition, during this same time frame and since, there has been an evolution from a single Advisor and an assistant serving clients, to a team of advisors and supporting professionals serving clients (my dissertation research focused on family wealth management teams). Not to mention the differentiation between fiduciaries and non-fiduciaries and those with CFP and CPWA designations, and those without.
MY PREDICTION – THE EVOLUTION OF THE WHOLE FAMILY ADVISOR®
About ten years ago I founded Legacy Capitals and my team and I serve Advisors and financially successful families from outside the walls of corporate America. This has provided me with a 50,000 foot perspective of the financial services industry. As a result of our own proprietary research, industry research, our direct experience training Advisors, and sitting across the kitchen and conference room tables of many of the wealthiest families in the US, my prediction is that if “Advisors” do not evolve to become Whole Family Advisors they will not grow and will ultimately fall behind those who become Whole Family Advisors. In particular, the Advisors who serve multigenerational wealth.
Why is this my prediction? For three primary reasons that I outlined in the article titled, It is Not Enough to Know…It’s Time to Take Action: The Whole Family Advisor and talked about in the video, A Call To Action.
THE PERFECT TRIFECTA
- Cerulli predicts that approximately 70 Trillion will be transferred from the Baby Boomer generation to their heirs (and charities).
- Shirtsleeves to Shirtsleeves in three generations US proverb (the wealth gained in one generation will be lost by the third).
- When wealth is transferred to heirs, the heirs leave their parent’s advisors in droves.
When you add these three data points together, it presents the greatest opportunity ever for “Advisors” who become or are, Whole Family Advisors!
HERE ARE THE TOP ATTRIBUTES OF WHOLE FAMILY ADVISORS®
- They see the whole family as the client.
- Their value proposition is to care for what their clients care about most; their loved ones are at the top of this list.
- They have built value-based relationships with the spouse/partner and adult rising generation family members (not just know their birthdates).
- Their team/firm consists of multigenerational professionals mirroring their clients’ generations.
- They are preparing their client-families for their wealth (not just preparing the assets for their clients).
If you are not sure if you and/or your firm has the strategies and skills to serve as a Whole Family Advisor complete our complimentary Training Needs Self-Assessment Tool. If you would like to register for our CFP and CPWA approved online Advisor Training Program, CLICK HERE.
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