A recent report from the Boston Consulting Group
entitled, Global Wealth 2018: Seizing the Analytics Advantage, says
that personal wealth throughout the world rose to $201.9 trillion, a 12%
increase from 2016. About 60% of these monies are investable assets.
There is a strong probability that personal wealth (and
investable wealth) is going to continue to grow at a solid pace. Moreover, the
monies the super-rich commands are likely to increase at a
considerably faster rate than the general population. This bodes very well for
financial advisors working with the wealthy and more so for financial advisors
working with the extremely wealthy.
The complication is that the world of financial advisors,
when it comes to the super-rich and even those less affluent, is that a
disproportionate amount of the investable assets are gravitating to fewer and
fewer of them. It is becoming winner-take-most, and there are relatively few
winners. This does not mean that the great majority of financial advisors will
not be able to make a good living. What it does mean is that a small, but
meaningful, percentage of financial advisors will be able to become
substantially wealthy in their own right.
According to John Bowen, cofounder of CEG Advantage and
author of Elite Wealth Planning: Lessons From the Super Rich, “With
investment management becoming increasingly commoditized, the most successful
financial advisors will be the ones who are extremely capable when it comes to
business development. They will be the ones with sterling professional brands;
they will be thought leaders. These financial advisors will also be able to
source new and ever wealthier clients by creating strategic partnerships with other professionals such as
trusts and estate attorneys and accountants who have high-net-worth practices.”
A great percentage of financial advisors are not adept at
positioning themselves as the experts the wealthy want – as thought leaders. At the same time, a small portion of financial
advisors is really skilled at building strategic partnerships with other
professionals. They are not going to truly benefit from the wealth boom. For
those financial advisors who are capable, the opportunities are spectacular.
here for the original article from Forbes.