COVER STORY
Integrating Expert Advice Across All Fronts
About half of the entrepreneurs surveyed ( 56.9 %) said they wanted a single advisor who could handle both the business and personal side of their lives . ( see Exhibit 4 on the following page ).
The upshot is that the advisors who can do both will have an advantage : They must be able to show expertise in both a client ’ s business concerns and personal wealth and build a bridge between a client ’ s personal and family wealth and their business dealings . Such a holistic approach means the advisor can optimize a client ’ s tax efficiency , manage risks and align business growth with personal wealth objectives .
However , advisors should know their boundaries — understand the limits of their own knowledge about their clients ’ businesses and the advisory work that can be done better by specialists ( which gets us into the team approach we discuss next ).
Strategic Coordination : The New Frontier For Financial Advisors
Advisors who want to bring that holistic approach must become strategic general managers who can draw together a team of professionals — akin to franchise players — each an expert in their domain , whether it ’ s legal , accounting or insurance . This assembly of talents will allow you to synchronize your efforts across all fronts of your clients ’ financial affairs — and it will make you indispensable to them .
Virtual Family Offices
The best business model for this approach is the virtual family office , a model that advisors can use to differentiate themselves in the eyes of the wealthiest business owners .
Advisors who want to bring that holistic approach must become strategic general managers who can draw together a team of professionals — akin to franchise players .
These offices offer something similar to the fullservice approaches of traditional single-family offices , catering to the world ’ s most affluent families by managing their comprehensive financial and lifestyle needs . Virtual family offices extend these high-caliber services — such as investment oversight , estate and tax planning , succession strategies , and more — to a broader clientele , ensuring the offerings are adapted to each client ’ s financial situation . Importantly , these offices are designed with longevity in mind , ensuring that the wealth management strategies implemented today will support clients and their families for generations to come , preserving and growing their legacy over the long term .
EXHIBIT 3 :
Services Received , Expected And Valued From Primary Advisor
( By Entrepreneurs With $ 5 Million + Of Net Worth )
|
Investment Management
72.2 % 75 . 4 %
70.3 %
|
Financial Planning
65.0 % 65.9 % 61 . 1 %
|
Tax-Planning Advice
52.2 %
58.3 % 58.6 %
|
Estate Planning Advice *
49.4 % 56 . 6 % 52.5 %
|
Business Succession Planning |
21.9 %
29 . 0 % 28 . 6 %
Received |
Expected |
Valued |
Received |
Expected |
Valued |
Received |
Expected |
Valued |
Received |
Expected |
Valued |
Received |
Expected |
Valued |
* Including wealth transfer and estate settlement advice . N = 809 Entrepreneurs . Source : © 2024 CEG Insights
MARCH 2024 | FINANCIAL ADVISOR MAGAZINE | 41