THE BIG PICTURE

profiles , and even genetic makeup of patients . This type of tailored approach further supports the need for preventative care , which reduces risk and contributes to long-term health benefits .”

Precision financial advice will be similarly impactful : It will target even the smallest distinctions among clients , who will be encouraged to seek it out early and often to reduce their risk and optimize their long-term outcomes . Nathanson is describing what he terms “ extreme specialization , customization , and depth of advice , well beyond the current general interpretation of those terms .”

Advisors serving business owners “ will need to have expertise and experience catered to specific business types , ownership and capital structures , industry segments , employee bases , business sizes and locations , and even leadership and management styles . Their advice will be integrated not only into the financial plans of their individual clients but also into the business plans of their companies .”

Advisors are just beginning to engage is serious consumer marketing as a handful of firms like Creative Planning and Corient run national advertising campaigns , whereas in the past some had merely targeted local advertising in regional business journals and other marketing vehicles .

In the future , they can also expect to see themselves “ heavily scrutinized and publicly rated by consumers and consumer advocates ,” Nathanson says .

Technology ’ s Impact

Everyone agrees that there aren ’ t nearly enough advisors to satisfy the demand for financial advice — and that increasingly sophisticated technology should enable advisors to serve more clients in more distant locations . But how many more clients ?

“ Until artificial intelligence is truly intelligent , including emotionally , humans will still need humans for financial advice . But that advice will increasingly be delivered in a technology wrapper , making it even more impactful and efficient for clients ,” Nathanson says .

Some think the impact of technology — a decade ago with robo-advisors , today with AI — could be exaggerated .

“ Just like investment management has become a commodity , with the advent of great technology , financial planning is also becoming commoditized ,” says Carolyn McClanahan , founder of Life Planning Partners . “ More people will try to

do it themselves . However , just like with investment management , many of the people who try to do it themselves won ’ t necessarily do a good job .”

She notes that while it ’ s “ fairly easy ” to accumulate assets , the decumulation phase is more challenging . “ Pulling the trigger on spending money , understanding how to be tax-efficient in retirement , and realizing that you ’ ll need help at some point as you age will be what continues to drive people to advisors ,” she believes .

There could be a backlash against the overreliance on technology . People are already being driven crazy by voice mail hell , and AI is already causing problems as much as offering help . The main job of financial advisors could be to act as client advocates to help “ fight the machines .”

Others take a more nuanced view of AI ’ s impact . It “ will certainly be transformational in terms of processing data , making advisory firms and those that support them more efficient , and delivering more insightful information to clients and advisors ,” Tibergien says . “ However , the data from which the industry has to work is probably pretty messy and inconsistent , so a lot of work has to be done on the base of information , as well as the technology , first .”

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MARCH 2024 | FINANCIAL ADVISOR MAGAZINE | 17