20 July 2018

Few Advisors Benefiting From Wealth Boom

#
Share This Story

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.

Click here for the original article from Forbes. 

Join Our Online Community
Join the Better Way To Retire community and get access to applications, relevant research, groups and blogs. Let us help you Retire Better™
FamilyWealth Social News
Follow Us