Families with $25 million or more in net worth, excluding a primary residence, are setting standards and expectations for the wealth management industry, according to a recent CEG report published by the Investments & Wealth Institute.
Advisors who understand the needs and meet the demands of the ultra-wealthy are most likely to prosper, both with this segment and across their entire client base.
Serving $25 million-plus clients is no longer a “nice-to-have,” according to the paper, but a strategic imperative for advisors. Several factors are driving the shift.
The ultra-wealthy segment’s demand for holistic planning, specialized expertise and technology-enabled experiences will filter down market. Advisors who align with these standards now will have a leg up and please all their clients.
The $25 million-plus demographic is expanding, thanks to entrepreneurial activities, robust capital markets and generational wealth transfers. The paper notes that affluent clients today can become ultra-wealthy tomorrow, and to retain them, advisors must serve them with sophistication and adequate resources.
The ultra-wealthy segment’s wealth came through multiple endeavors, and they want advisors who can coordinate all dimensions of their financial lives into a coherent strategy. Their complex needs are pushing advisors to expand their capabilities, thereby securing their loyalty and elevating the quality of service across all relationships.
According to the paper, many ultra-wealthy families report that their estate planning and protection needs remain largely unmet. This disconnect represents a major opportunity for advisors who can delivering the necessary solutions.
For the paper, CEG researchers asked investors three separate questions: what services they want, what services they currently receive and what services they consider valuable — services they identify as important to their overall financial plans, whether or not they receive them.
See the gallery for nine estate planning and asset protections investors said they wanted, whether they had received them and how they valued those services.
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