1. Know your future clients. Millennials and Gen Xers are estimated to inherit $34 trillion, according to research from Cerulli Associates. Part of this wealth transfer is due to succession planning by family-owned businesses: There are 23 million small businesses in the United States today, many undergoing generational change.
I think this incoming set of clients will expect more from their advisors than current clients. They’ll want a different kind of relationship—one based on transparency, shared values, and proactive, integrated guidance.
To meet these expectations, advisors must be clear about their firm’s vision and mission and be able to clearly articulate the value they bring to clients’ lives and finances.
Research consistently shows that high-net-worth clients are looking for holistic solutions that integrate financial, legal, tax, wealth management, and behavioral advice under one roof. This really boils down to needing the discipline of multiple professional advisors working as one integrated team to provide the clients the widest lane for successful decisions and execution.
For example, investments that sit outside of a client’s retirement plan may have tax elements that should be examined to determine if tax return enhancement is possible.
Every financial advice decision will have elements to consider from liquidity, investment results, risk analysis, tax effects, and estate planning. Advisors must be able to show clients they can make integrated decisions that result in the best outcomes.
Another data point impacting your future clients is the growth of assets controlled by women. This creates a significant opportunity, however, some research suggests that affluent women are less likely to work with financial advisors and they may have very different expectations of their advisors. This underscores the need for more tailored, trust-based approaches.
2. Partner with AI, don’t compete with it. AI is already capable of delivering vast amounts of high-quality financial advice—and it’s only getting better.
Advisors must learn to work with it. They should not only be aware of the AI tools available, but also understand how to use them if they want to succeed in delivering their fiduciary duty to clients and meet their goals for client acquisition and retention.
AI tools aren’t just for streamlining operations. They can also improve other aspects of client experience. Successful firms will embed AI into their offerings, leveraging its strengths across legal, tax, planning, wealth management, and behavioral advice to create seamless, tech-enabled experiences.
Each firm will need to define its AI strategy: How will knowledge from AI agents be validated, shared, and applied? Advisors who master this integration to achieve the best outcomes will set themselves apart in a large professional ecosystem and create business opportunities for their firm.
3. Clarify your role and purpose. To build a meaningful, sustainable career, you must understand your skills. Some people are natural rainmakers, others are born leaders, while still others are best with technical detail—the future will enable professionals to build on their natural DNA for success.
Will you be a C-suite leader of a FIAF (Family Integrated Advice Firm) so that your firm can deliver excellent professional work and grow? Or will you be a client-facing specialist providing knowledge and leadership to help people navigate complex decisions with clarity and confidence?
Don’t be afraid to explore who you are. Test yourself with traditional personality assessments such as Myers-Briggs or DISC.
Dive into what’s known as facial micro-expression analysis, which interprets facial expressions and can uncover hidden emotions, simply by providing a video or photo. Examine your academic background and knowledge base to make sure your expertise aligns with what clients need.
It also helps to identify your top professional ambitions. Consider ranking the following motivating factors:
⦁ Providing client value
⦁ Peer recognition
⦁ Annual income objectives
⦁ Becoming wealthy from equity creation in the firm
⦁ Leading a successful firm as a C-suite member
⦁ Quality of life
Let me wrap up by providing three tips to help guide your choices. First, define your current professional path and why you chose it. Then, use AI tools, such as the ChatGPT financial services professional agent, to experience firsthand what clients can access for free. And think about what your future firm’s niche might be, such as focusing on businesses going through generational transition, or women investors.
The advisory firm of the future will look very different. Advisors who understand their clients, embrace technology, and align their strengths with their firm’s mission will be the ones who lead—and last.
Frank Mindicino is the managing partner at Practice Growth Partners, which runs the Next Generation C-suite Academy. There industry experts train the next generation of financial professionals. You can email him at fcm@pgrowthp.com.