Comprehensive Financial Planning: how to help wealthy clients add purpose to their wealth

Jul 04, 2019

By David Finley

With greater wealth comes greater responsibility. However, these demands often interfere with being able to clearly define the purpose of one’s wealth and building a plan to make that purpose a reality.

Research shows that high-net-worth (HNW) investors who work with an advisor are closer to achieving their overall life goals – particularly if a comprehensive financial planning approach is taken.

There’s a good reason for this: wealthy people don’t just want to get wealthier. They often want to use their financial resources to help make the world a better place, to create more meaning in their lives, and to support their loved ones in achieving their hopes and dreams. In fact, 7 out of 10 investors stated that it’s extremely important for them to have a financial plan that addresses their lifestyle goals, not just their finances.  

With the high-net-worth investor segment on the rise and not expected to slow down anytime soon, the opportunity is ripe for advisors to work with this demographic. However, only those advisors that can clearly articulate how their unique value proposition helps their clients achieve happiness and live with greater purpose will succeed at winning this market.

Below are five articles that clearly show why advisors must shift their offerings and messaging to a comprehensive planning approach to attract the business of the world’s wealthiest clients. I hope these articles help you develop your own plan to compete in this marketplace.


Clients want holistic financial planning but prefer it to be comprehensive

By Michael Thrasher (@Mike_Thrasher)

The words you use matter, even if their meanings are similar. For example, a recent study by BNY Mellon’s Pershing uncovered that 84% of investors prefer the word ‘comprehensive’ over ‘holistic,’ and the worlds wealthiest still want to be called ‘high-net-worth’ clients.

Photo source: Clients want holistic advice but prefer it to be comprehensive

To attract high-net-worth clients, you need to choose your service offering –and the words you use to describe it – wisely.


The 2018 Fidelity Millionaire Outlook report

By Fidelity Investments

This report reveals clients’ perceptions of value are changing and they want their advisors to provide multiple types of value – and they’re willing to pay for these services. These higher-level values build from managing clients’ money to helping them achieve their goals and peace of mind. Ultimately, wealthy investors want their advisors to help them achieve a sense of fulfillment, a sense that they’ve accomplished their life’s purpose, and are leaving behind a legacy.

Photo source: The 2018 Fidelity Millionaire Outlook Report, pg. 17


U.S. Trust 2018 Study of High Net Worth Investors

By Bank of America Private Bank

This study shows that more than 50% of US HNW investors do not have a clearly defined purpose to their wealth. This uncertainty has provided advisors with an opportunity to add value. Data from this report shows that 65% of those who are working with an advisor are farther along in achieving their goals than those without, especially if they are using a comprehensive approach.

Photo source: U.S Trust 2018 Study of High Net Worth Investors, Bank of America 


Return on Integrity: The New Metric for Financial Performance

By Barbara Stewart (@RichThinkingB)

Up until now, money has been used to measure personal investment and wealth management firms’ amount of success. However, modern investors and employees alike desire integrity and purpose behind their financial pursuits. According to this insightful piece by Barbara Stewart and thought-leaders Kim Shannon, Rob Lake (@roblake1959), Marlene Nørgaard and Paul Ross, the new metric for brands and investors to measure financial performance is no longer revenue – it’s integrity.

“It’s no marketing secret that integrity plays a critical role in how you go about building relationships with consumers — and that translates indirectly to financial performance.”  - Paul Ross


#Success in #Relocation: Key Findings

By Scorpio Partnership and One Life

This research study discovered that over a quarter of HNW individuals have already relocated to another country and many more are considering a move. For many, there's a disconnection between the fantasy of moving and the realities of living in a new country. Relocating requires a serious financial safety net and only 8% of relocators have found their wealth managers supportive in this process. This demonstrates that HNW people are looking to advisors for other kinds of support, like relocation advising. These kind of lifestyle decisions and goals are personalized areas of your clients' lives that need to be included in their custom financial advisory package.

For more industry updates, follow me on Twitter (@davidmfinley) and Linkedin


50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.