Does The Massive Wealth Management Client Expectations Gap Presage A Major Industry Upheaval? (2024)

David F. Sterling, Esq.

Wealth Care Advocate and Consultant

2y

RE: On Point (Continued)Picking up from my most recent post referencing the contributions of Chris Heye and Dwight Griesman.HOLISTIC CONSORTIUMS. The value of Dwight's contribution to the discussion is the business and practice management flexibility of a consortium along with design options to "define and deliver" service capabilities and marketable value propositions.In form and function, business models can be externally or internally collaborative and interdisciplinary. NOTE. Interdisciplinary is distinguishable from multidisciplinary. Interdisciplinary implies a "fusion" to create a "new and dynamic" professional entity with expanded resource and more client-centric service solutions. Multidisciplinary implies a collective mission and the delivery of combined resources and solutions structured and defined by integrated and adopted operational principles and roles. Strategic alliances create the foundation for the design and delivery of service solutions in a manner perceived as seamless to the client.THE INFLECTION POINT. The intersection of demographic trends and financial advisory resources/capabilities. THE CHALLENGE. Recognition and acknowledgement of the need for new ways of thinking and operating.

David F. Sterling, Esq.

Wealth Care Advocate and Consultant

2y

RE: On PointTogether, Chris Heye and Dwight Griesman capture and envision the nature of the challenge, opportunity and pathway to success. (1) Chris - "I did not feel that advisors were doing enough to protect older adults and their families." (2) Dwight - "Seems like an opportunity for a more holistic consortium of service providers offered under one umbrella."Relative to these timely and relevant observations, I offer the following considerations as essential elements comprising a distinguishable and practical formula for success. Form and function in full play.FINANCIAL ADVISORS. At their fingertips is an array of financial resources, product-based solutions (insurance) and investment advisory services that offer the "means" for clients to more confidently accept and address inevitable financial realities. ONE CONSIDERATION. To introduce and implement the regulatory framework, expertise and practice management protocols enabling advisors to promote and deliver needed solutions without compromising budgetary, service time and operational constraints. My experience - it's doable, but only if!HOLISTIC CONSORTIUMS. The concept embodies the solution in form and function. Out of space - will follow-up shortly.

Lyle Sussman

professor at university of Louisville

2y

Upheavel..maybe. Repositioning and ,reimagining, definitely...Some financial firms will seize the opportunity, others will retreat from the threat. But that is the transcendent truth of all marketplace success and failure.

David F. Sterling, Esq.

Wealth Care Advocate and Consultant

2y

RE: The Retirement Twilight ZoneLoved the article. It focuses on the "perfect storm" of opportunity BUT one which cannot be developed based on existing protocols and practices common to the financial services industry. The complexities and expertise required to navigate the stage of life of those occupying the Retirement Twilight Zone require the collaboration of multiple disciplines and interactive channels.The product and advisory services are available to design the solutions. BUT it's on the execution side of solution application, delivery, implementation and operations where our industry comes up short. Execution requires expertise and precision, BUT more importantly, knowledge of the variables and contingencies to successfully bring clients into and through the Retirement Twilight Zone.At this very moment, I have 5 client engagements requiring the focus, awareness and understanding of client needs and preferences that Chris references. All are in a state of calamity because of a financial advisor's failure to respect and understand the administrative routines, contingency planning directives, and authorized protocols provided under each client's Durable Power of Attorney, Revocable Trust and Health Care Surrogate. The HOW of it all is often attributable to the "form and function" of the decision-making dashboard and control panel created through the drafting work of qualified estate planning and elder law attorneys. Finally, it matters who is pushing the buttons and pulling levers. Even more significant might be those who are guiding them -- and therein lies the solution.

Tony Steuer, CLU, LA, CPFFE

Changing the way we think about money | Best Selling Author | Podcaster | International Financial Preparedness Advocate

2y

Chris Heye, PhD, excellent article. The financial services industry has a long tradition of telling people what they want, rather than giving them what they need. As Keena Pettijohns says, we need to meet them where there money is. This study bears out the fact that the advice given is not the advice that people are looking for and can use. While the average age of wealth management customer is rising, buoyed by baby boomers, that is not the only reason. The financial planning industry has catered to higher net worth clients who tend to be older. Younger clients with lower AUM's have less access to professional advisors.The question for my #fintech colleagues is are we going to create solutions that people want? Or we going to sell them what we think is the right solution?