Total market bond funds offer competitive yields, but do they belong in your portfolio?

Often complex and misunderstood, these funds encompass more than basic bond investments; they vary in structure, management approaches and risk characteristics.

Active management in the bond market presents unique challenges, as managers must carefully navigate duration and credit exposures to outperform benchmarks, often by adjusting duration or targeting higher-yield corporate bonds.

If you're thinking of working with an adviser to include total market bond funds in your portfolio, here's what you should know.

What are total market bond funds composed of?

Total market bond funds were traditionally used to reduce equity risk and enhance diversification and are composed of various public and private bonds.

For example, the Bloomberg U.S. Aggregate Bond Index (the Agg), which tracks more than 10,000 securities with a total value of roughly $50 trillion+, is made up of three primary components: U.S. Treasuries, corporate bonds and mortgage-backed securities.

Overarchingly, with total market bond index funds, the more debt an entity issues, the greater its weight in the index. Hence why U.S. Treasuries are such a large component of the index.

Besides the Agg, what are other common total bond market funds?

Many funds track an Agg-like index. Some are actively managing "total bond" or "core/core-plus" funds. They mostly use investment-grade U.S. bonds, including Treasuries, agencies and investment-grade corporate bonds, as well as agency mortgage-backed securities.

Active "total bond/core /core-plus" funds offer more flexibility. They include more corporate, securitized and mortgage assets. Some funds add high-yield and international bonds.

How should investors assess their risk appetite?

To accurately gauge risk tolerance with total market bond funds, investors must identify interest rate, credit and duration risks. While diversification is often viewed positively, it may not always yield stability in bond portfolios.

Previous beliefs about bond reliability must be reevaluated. For example, while interest rates are higher than they were before 2022, can bonds earn enough income to offset inflation moving forward?

When interest rates rise, the value of existing bonds declines. Funds linked to the Agg generally have significant duration, which increases their sensitivity to rate fluctuations. A prolonged period can lead to significant losses during rising interest rates.

Between 2021 and 2022, investors encountered substantial losses in perceived "safe" bond funds as rates surged. Confusing duration with maturity and misjudging rate sensitivity contributed to negative surprises. Not all advisers may be up to the task.

How should investors benchmark a total market bond fund's performance?

Benchmarking is crucial for managing total bond market funds and is highly personalized.

To see if a bond fund works for your specific financial goals, you or your adviser should compare it to the Agg over time.

Many investors compare their portfolios to the S&P 500, even in a 60/40 or 40/60 mix. Old rules, like "age in bonds," are archaic and come from a time of high rates that no longer exist.

To try to beat the Agg, active managers might buy more investment-grade corporates rather than Treasuries, then add high-yield or unrated bonds and invest in securitized credit, such as mortgage-backed securities.

This approach may increase yields but can also heighten vulnerability to economic contraction and credit disruptions, potentially leading to pronounced losses during severe credit downturns.

Your personal risk appetite will determine whether total market bond funds is a good strategy.

Remember, total bond market funds are simply a tool

Ultimately, investors should prioritize achieving personal financial objectives and treat total bond market funds as portfolio instruments rather than inherently "safe" investments.

Remember that two total bond funds with similar names may have very different risk levels.

To strategically add them to an otherwise healthy portfolio, carefully assess duration, credit composition, sector allocation, fees and performance relative to the Agg before moving forward.

Working with a knowledgeable adviser can mean the difference between injecting a healthy dose of risk, aiming for a smart long-term gain or demolishing the portfolio you've worked hard to build.

Related Content

• What Are Bonds and How Do They Work?
• 10 Things You Should Know About Bonds
• What All Investors Should Know About The Life Cycle of a Bond
• Three Common Mutual Fund Misconceptions Debunked
• Is the Traditional 60/40 Portfolio Truly Dead? Or Just Hibernating?

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Last summer's tax law changes introduced new floors on charitable deductions for high earners. In response, donor-advised fund (DAF) contributions surged.

According to the Wall Street Journal (paywall), new accounts rose 123% at National Philanthropic Trust and nearly doubled at Vanguard Charitable in the final months of 2025, as donors moved appreciated assets into tax-advantaged vehicles at historic valuations.

Today, more than $326 billion sits in DAFs — capital explicitly set aside for public good but not yet deployed.

The DAF policy debate has centered almost entirely on payout rates. Unlike private foundations, which must distribute at least 5% annually, DAFs have no federal minimum. But that framing misses the point.

The more urgent question is not when is this capital granted, but instead, how is it working in the meantime?

Right now, most DAF capital is working similarly to any other pool of wealth. Most of these assets remain in cash, money market funds or conventional portfolios, generating market returns while the intended impact is deferred.

This seemingly neutral choice represents a massive missed opportunity.

Impact-first investing: A straightforward solution

A growing set of solutions to our most persistent social challenges, such as affordable housing, childcare, community-based lending, regenerative agriculture and workforce development, operate with real, durable business models. They generate revenue, preserve capital and, in some cases, produce modest returns.

Yet traditional investors routinely overlook them because they fall outside conventional risk-return parameters. At the same time, they do not fit neatly into grantmaking. As a result, they remain chronically undercapitalized.

This is precisely the gap that impact-first investing is designed to fill.

The premise is straightforward: Prioritize measurable social or environmental outcomes while structuring capital to recycle. Each dollar can be deployed, returned and redeployed, compounding its impact over time.

Consider early childcare. Providers are small businesses with strong community demand, yet they consistently lack access to affordable, flexible capital.

An organization like the Low Income Investment Fund can address this gap by providing capital, technical assistance and policy support. The capital it lends is repaid and recycled to support additional providers, extending the reach of each original investment.

Returns are modest, but capital preservation is strong, and the social outcomes — expanded access, increased capacity, improved quality — are both tangible and measurable.

Another organization, Care Access Real Estate (CARE), tackles the largest cost barrier providers face: Real estate. CARE acquires, renovates and leases properties to quality licensed childcare providers at affordable rates, allowing them to scale their businesses.

It also offers a purchase option that creates a pathway to property ownership and wealth-building.

Now consider the scale of what is possible. If just 10% of DAF assets were allocated to impact-first investments, that would unlock more than $32 billion in catalytic capital.

Deployed thoughtfully, that capital could accelerate business models that generate income, build wealth, expand access to essential services, and strengthen community and climate resilience, all while preserving and recycling philanthropic resources.

Expanding the charitable toolkit

We see a consistent pattern among ultra-high-net-worth individuals and families. Interest in impact-first investing is high. In a 2019 survey of 270 DAF donors, roughly three-quarters expressed a desire to deploy capital this way.

The barriers are practical, not ideological: Sourcing credible opportunities, conducting diligence, constructing diversified portfolios and measuring outcomes with rigor. With the right infrastructure and expertise, these are solvable problems.

The result would be a more effective use of philanthropic capital. Grants would continue to flow. At the same time, impact would compound as investments are repaid and redeployed into new solutions. This is not about replacing one tool with another. It's about expanding the toolkit.

Charitable capital has already received its public subsidy. It should be working as hard as possible for the public good.

Not someday. Now.

Related Content

• One Big Beautiful Bill, One Big Question: Will We Keep Giving?
• Five Ways to Approach Impact Investing
• SRI vs. ESG vs. Impact Investing: What's the Difference?
• An Impact Investing Guide for Private Foundations
• How to Put Your IRA to Work for Change and to Help the Next Generation, Courtesy of an Investment Adviser

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Something is happening in advisory practices across the country. The clients who once fit neatly into a financial planning model have changed, and the gap between what they expect and what most firms deliver is getting harder to ignore.

This trend is showing up in client conversations and retention numbers. It's also recurring in conversations I'm having with advisers who sense the model that got them here may not be enough to carry them forward.

While this shift might be concerning to some, I see it as a real opportunity — at least for advisers who are willing to see it that way.

The client has changed

The wealth management industry is in the middle of what may be the most significant client reset in decades. Clients today are approaching wealth differently than they did even a few years ago, and their expectations of the advisory relationship are evolving just as quickly.

Clients are no longer solely focused on portfolio performance. Instead, they want advice that reflects their values, goals, time horizon and definition of success. Generic strategies and one-size-fits-all portfolios are becoming increasingly out of step with what today's clients expect from a financial relationship.

Many clients are also looking for what I call Return on Time Invested, or ROTI. They want advice that buys back hours and funds experiences, not just accumulation. They're less interested in being managed and more interested in being understood.

This shift creates a meaningful challenge for advisers whose practices were built around a model designed for a different type of client. It's also a great opportunity for a reset of the adviser-client relationship itself.

Firms that don't adapt risk losing those relationships as client expectations continue to rise.

Client expectations have outpaced what most firms deliver

For most of the industry's history, the advisory model has been transactional: Win clients, manage portfolios and compete on performance and service. That model no longer matches what clients expect.

Today's clients don't experience their financial lives in silos. They don't separate their investment portfolio from their insurance coverage, estate plan or tax situation. They want someone who can see the whole picture and advise accordingly. They're looking for a better client experience.

The most successful firms are consistently delivering that experience, starting when a client first says yes and lasting throughout the duration of the relationship. They're offering proactive communication rather than reactive. They're providing tax-aware portfolio construction rather than performance-first allocation.

These firms deliver advice that is tailored to the individual, even across a large and growing client base.

Until recently, that kind of capability required infrastructure that only the largest firms could afford. While that's no longer true, it does require the right partners and a willingness to build something more intentional than most advisory practices have been in the past.

From transactions to relationships

The advisers who will thrive over the next decade aren't necessarily the ones with the most clients or highest assets under management (AUM). They're the ones who have built a systematically personalized client experience and the infrastructure to deliver it consistently.

The defining opportunity for independent advisers right now is the shift from transactions to teamwork — and it's one that plays directly to the strengths that independent firms already possess.

Independent advisers aren't steered toward proprietary products. The advice they give is genuinely theirs, and the relationships they build belong to them. As consolidation continues to reshape the industry, that clarity of purpose becomes a differentiator clients notice and value.

The question is how to build the experience that clients are looking for without losing what makes the independent model work. At AE Wealth Management, here's how we're helping advisers understand and make the shift:

• Whole-picture planning is the new standard. Clients expect their adviser to understand the full picture, not just their investment portfolio. Tools that integrate market-correlated and non-market-correlated investments, life insurance and annuities into a single planning view give advisers the ability to deliver comprehensive advice without doing all the heavy lifting themselves.
• Personalization is within reach. Direct indexing, tax-aware portfolio construction and preference-based customization used to require resources most independent firms couldn't access. The right platform partner can change that, putting sophisticated personalization tools in the hands of advisers who want to compete on depth of service rather than just breadth of offering.
• Systematization must be personal. The firms that are growing consistently have one thing in common: A repeatable, disciplined approach to the client experience. However, that doesn't mean it's generic. These firms are building processes that deliver a high-quality, personalized experience to every client, not just the top tier.
• Succession and continuity are part of the experience. Clients who trust an adviser want to know the relationship is protected over time. Advisers who think proactively about succession and preemptively design internal equity tracks and leadership development programs send a signal about the kind of firm they're building.

Consolidation is changing the competitive landscape

As I previously wrote in the article You Don't Have to Sell Out to Grow: A Case for Staying Independent as an RIA on Your Terms, private equity is reshaping the RIA competitive landscape at a speed that was hard to predict even a few years ago. Consolidation is creating real pressure on independent firms, but it's also clarifying something.

Clients are beginning to understand the difference between an adviser who is independent and one who operates inside a structure built for someone else's exit timeline. As that distinction becomes more visible, independent advisers who can clearly articulate their value and back it up with a consistently excellent client experience are gaining an edge that is difficult to replicate.

The advisers who will benefit most from the current opportunities are the ones who stop treating independence as a default and start treating it as a strategy.

Start with the client in front of you

These changes in wealth management can feel abstract until you zoom in on a single client relationship.

• What does that client expect from you today that they didn't five years ago?
• What does their next chapter look like?
• Does your practice have the tools and infrastructure to support it?

The advisers who are asking those questions and acting on the answers are the ones building something that lasts.

The client has changed. The model is shifting. The opportunity is real. The only question is what you will do with it.

This content is for informational use only and not intended as financial advice or advice designed to meet the needs of any particular situation.

Related Content

• Starting to Advise Ultra-Rich Clients? Don't Rebuild Your Firm, Just Rethink It
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Financial Advisers Can Deliver a True Family Office Experience
• The Four Key Pillars of Wealth Management of the Future
• To Win HNW Clients, Consider an Unbundled Advisory Model That Delivers Objective Oversight

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Financial advisers spend a lot of time talking about risk, whether that's market risk, inflation, longevity, tax, sequence of returns, concentration, long-term care … The list seems endless.

But clients don't necessarily experience retirement risk as a category on a planning report. They experience it as a knot in the stomach:

• What if I run out of money?
• What if I become a burden to my children?
• What if I retire and lose my identity?
• What if my spouse dies first?
• What if the market falls right after I stop working?
• What if I need care and there is no good place for me to go?

For financial advisers, these fears can be frustrating if they appear to contradict the numbers. The plan may be strong. The portfolio may be diversified. The Monte Carlo analysis may look solid. The client may have more than enough. And yet the fear is real.

That is where the adviser's work becomes more human. The best advisers don't simply tell clients not to worry. They help clients understand which worries are emotional noise and which ones are pointing to real planning gaps.

That is the difference between fear that paralyzes and fear that prepares.

Start by normalizing the fear

Billy Spencer, a wealth manager at Crestwood Advisors in Boston, says fear can be viewed as a feedback mechanism. "The question is not whether a client feels fear. The question is whether the fear is controllable and actionable," says Spencer.

That framing can be powerful.

Clients approaching retirement are often stepping into unfamiliar territory. For 30 or 40 years, the work rhythm was clear: Earn, save, invest, repeat.

Retirement changes the assignment. Now clients must spend from assets, make healthcare decisions, think about housing, prepare for aging and build a life that may no longer revolve around professional achievement.

For high-performing executives and business owners, that can be especially unsettling.

Jeff Blomgren, managing partner and co-founder at Mountain Legacy Family Wealth Partners in Colorado, works with many executives who have accumulated substantial wealth. In his experience, the issue is not always whether they can afford to retire. It's what retirement will ask of them emotionally.

• What will I do with my time?
• How will I stay challenged?
• How will my relationships change?
• How do I remain useful?

Those are not soft questions. They are central retirement questions. Advisers who ignore them may miss the real source of client anxiety.

Separate emotional fear from planning risk

A client's fear of running out of money may mean several different things. It may mean the client truly has not saved enough, or the withdrawal rate is too high. It may mean the portfolio is poorly positioned, or the client has not planned for long-term care.

Or it may mean the client grew up in a household where money was scarce and cannot emotionally trust abundance, even when the plan is sound. The adviser's job is to help tell the difference.

Bob Dietz, a wealth strategist at Bernstein Private Wealth Management, works with high-net-worth and ultra-high-net-worth clients on issues such as tax planning, portfolio stress-testing, wealth transfer and retirement income. "Healthy fear often points to a planning gap. If the fear causes the client to focus, engage and take action, it can be constructive," he says.

That may mean stress-testing the plan under poor capital market assumptions, and modeling life expectancy, taxes, inflation and spending. It may mean looking at the impact of Roth conversions, charitable strategies, required minimum distributions or concentrated wealth created through a business sale.

For wealthy clients, the fear may not be, "Will I be poor?" It may be, "What am I missing?"

Use the plan as a compass, not a verdict

Monte Carlo analysis to stress-test a portfolio can be useful, but should not be presented as a magic bullet. Clients may not fully understand probabilities, and even an 85% or 90% success rate can leave them wondering about the other 10% or 15%.

Spencer describes planning as a compass. It helps clients make adjustments as life unfolds. That is a healthier message than presenting a plan as something carved in stone.

Retirement may last 25 or 30 years. Markets, tax laws and clients' health, family needs and goals will all change.

A good adviser can help clients expect that change instead of fear it. That may include regular reviews, updated projections and plain-English conversations about trade-offs.

Can the client spend more? Give more? Retire sooner? Work part time? Buy the second home? Help a child with a house down payment? Pay for grandchildren's college? Move into a life care community?

The point is not to eliminate uncertainty. It is to make uncertainty more manageable.

Build liquidity clients can believe in

One of the simplest ways to reduce retirement fear is to give clients a clear answer to this question: Where does my spending money come from if markets fall?

Jason Dall'Acqua, CFP®, founder of Crest Wealth Advisors in Maryland, uses planning tools, stress tests and reserve strategies to help clients understand how they can fund several years of spending without being forced to sell long-term assets in a downturn.

Blomgren describes a bucket strategy that may set aside three to five years of essential expenses in safer assets while allowing the rest of the portfolio to remain invested for longer-term growth.

That kind of structure can help clients stay disciplined. It also gives advisers language they can use during volatility: We planned for this. This is why the reserve exists. This is why the portfolio is not built around one market environment.

That does not remove fear. But it can keep fear from turning into panic.

Address the fear of spending

Many retirees need help not only with saving and investing, but with spending.

This can be especially true for clients who built wealth through discipline, frugality and restraint. The habits that helped them accumulate assets may make it difficult to enjoy those assets.

Dall'Acqua says helping clients feel comfortable spending, gifting or giving to charity can be one of the most rewarding parts of the job. But it often requires more than showing a projection. It requires conversations about values:

• What is the money for?
• What experiences matter while the client is healthy?
• What would be more meaningful — leaving a larger estate later or helping children and grandchildren now?
• What charitable causes reflect the family's values?

A healthy fear of running out of money may lead to better withdrawal planning. But an unhealthy fear may cause clients to lead a less-than-fulfilling retirement. Advisers can help clients find the middle ground.

Bring family and legacy fears into the open

Many retirement fears are really family fears:

• Will my children handle inherited wealth responsibly?
• Will one child feel treated unfairly?
• Should I help my grandchildren now?
• How do I talk about money without creating entitlement?
• Who will make decisions if I cannot?
• Will my spouse be prepared if I die first?

These concerns can lead to better planning if advisers know how to guide the conversation.

Blomgren encourages clients to think about supporting family during life, not only through inheritance. That might include education funding, help with housing, charitable giving through a donor-advised fund, or family conversations where younger generations have a voice, even if they don't have a vote.

"Advisers don't need to become a family therapist, but we can create the structure for better conversations," says Blomgren.

Don't ignore health, housing and cognitive decline

Some of the hardest retirement fears involve health.

Clients may have watched parents struggle with care decisions. They may fear dementia or becoming a burden to adult children. They may assume they can age in place, even if their home, location or family situation makes that difficult.

Spencer says these conversations often work best in smaller pieces:

• Who would you want involved if your health changed?
• Are your health care proxy and power of attorney documents current?
• What would quality care look like?
• What housing options would you consider?
• What would aging in place require?

For some clients, the answer may involve self-insuring. For others, insurance, home equity, a second-home sale or a continuing care community may be part of the plan.

The details matter less than the willingness to have the conversation before a crisis.

The adviser's soft skills are now planning skills

The future of financial advice is not just better software, better tax analysis or better portfolios. It is also better listening.

Clients need advisers who can validate concerns without amplifying panic. They need advisers who can say, "That is a reasonable fear. Let's see what it means in your plan."

That takes behavioral knowledge, empathy and patience. It takes the ability to translate complex planning into decisions clients can live with.

Fear will always be part of retirement. The question is whether advisers can help clients use it well.

Healthy fear should lead to action: A stronger plan, a clearer estate strategy, a better cash reserve, a more honest family conversation, a smarter tax strategy, a more realistic housing decision or a more intentional life.

Clients do not need to be fearless. They need to be prepared.

Related Content

• Nine Reasons Why Financial Advisers Should Sharpen Their 'Soft Skills'
• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
• I'm a Retirement Expert Who Just Turned 65. Here's the Advice I'm Actually Following
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Growth can become a numbers game fast. More campaigns, more touches, more spend. But one adviser we work with sees it differently: Your firm can grow when you're known by your community rather than just your clients.

That's the tension many firms face. You want to scale, but you don't want to lose the human side of the business in the process. The answer for this firm was simple and disciplined. Community service was made part of the team and the job.

The result is worth your attention. It became a big part of the firm's culture, client experience and growth.

One simple rule

The adviser and their leadership set a clear expectation: Every employee would spend four hours each quarter volunteering.

That kind of rule can sound small on paper. In practice, it does something bigger. It tells your team more about what matters on the annual calendar.

We've had a similar volunteer structure at our company for more than a decade, and employees often say these days are among their favorite of the year.

For the adviser, the reasoning for the rule was also rooted in a real client need. Many retired clients, once they leave long careers, lose more than a paycheck. They can lose routine, identity and community. The firm wanted to help bridge that gap by creating opportunities for connection through local service.

That decision gave the team a stronger sense of purpose. It also gave clients a clearer picture of what the company stood for.

Here's the key turning point: This firm didn't treat community work as branding language. It was treated as behavior.

Building bridges

As a financial adviser, you're in a trust business. People don't always choose your firm only because of the process or product. They also choose you because they believe you understand their lives and will show up when it counts. Community involvement reinforces that in a very public, very human way.

At this firm, volunteer events created three kinds of value at once:

• Stronger team connection. Employees served and interacted with colleagues across departments
• Deeper client ties. Clients enjoyed shared experiences with the team outside the office
• Clearer market identity. The firm became known for doing what it said it valued

That last point matters. Plenty of firms talk about care, service and purpose. Fewer build systems that make those values visible every quarter. It's a lot like fitness. Good intentions don't change much. Consistency changes things.

Each year, clients of this firm help choose a "charity of the year," giving them an ongoing voice in the firm's outreach and creating real buy-in from the start.

Employees also volunteer during normal work hours, which removes friction and signals that the commitment is real.

The team then works with local nonprofits to create meaningful events. Before each event, the nonprofit contact comes to the office and presents to the team. They give employees context about the mission, the local chapter and how the organization serves the community.

Why does that step matter? Because people engage more deeply when they know the "why" behind the work. They aren't just filling boxes or walking a route. They understand the people and purpose behind the effort.

That's when service begins to move from task to mission.

Metrics with meaning

If you're serious about making community engagement part of your business, you need to measure what matters.

Currently, this firm tracks volunteer hours to confirm participation. That's a good start. But the team understands something important: Hours are the input, not the outcome.

The firm houses program data in a custom-built dashboard. The dashboard gives the team one place to track volunteer hours, promote upcoming service opportunities and reinforce core values.

It also includes practical resources such as team spotlights, a quarterly newsletter, marketing themes and training documents.

That kind of central hub does two useful things.

First, it keeps the service visible. If your values live only in a presentation deck, they fade. If they live in the same place, your team checks for events, updates and resources as part of their daily work.

Second, it creates accountability. When outreach has a home inside your systems, it becomes easier to plan, measure and improve.

For advisers and their firms, this is the larger lesson: Culture scales better when you give it structure. If you want your team to act on a value, put it somewhere they can see, use and track.

Five steps to build a community outreach program

If you want to create something similar in your own firm, start here:

1. Define your values. If your team can't explain why your firm serves, the program will feel shallow. Start with a clear set of core values and make sure your outreach reflects them.

2. Invite client input. Ask clients which causes matter to them. This makes the program more personal and helps your outreach reflect the community you already serve.

3. Set a realistic commitment. Four hours each quarter worked for this firm because it was specific and manageable. Choose a standard your team can meet without turning it into a burden.

4. Partner locally. Look for organizations in your area that align with your firm's values and your clients' interests. Over the years, our company has partnered with dozens of local groups of many sizes, and we're always finding new ways to connect and create impact.

5. Track your impact. Start with hours if that's the easiest place to begin. But don't stop there. Over time, measure participation, client engagement, team sentiment and referral activity.

Showing up is the strategy

Advisory firms often seek growth through new tools, campaigns and channels. Those can help. But this one example is a reminder that growth also comes from being known, trusted and present in the places that matter to your clients and your team.

When your firm shows up consistently, people notice. They remember. They talk. That's not a shortcut. It's a principle you can build on.

Related Content

• Starting to Advise Ultra-Rich Clients? Don't Rebuild Your Firm, Just Rethink It
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• To Win HNW Clients, Consider an Unbundled Advisory Model That Delivers Objective Oversight
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

A young investor today wakes up to a TikTok video on private credit, asks a generative AI tool to draft a retirement plan over breakfast, scrolls through podcasts comparing crypto custodians on the commute and fields a robo-adviser's portfolio recommendation before lunch.

Information about money has never been cheaper to produce, easier to access or harder to evaluate. However, despite the ubiquity of investment information, human advisers remain the single most trusted source of guidance for young investors today.

The role of traditional investment advice in an age of digital communication is a central tension in the new Next-Gen Investors report from CFA Institute, which draws from a survey of more than 2,400 mass-affluent and high-net-worth investors in six major wealth markets around the world.

Instead of reading this as nostalgia for a fading model, consider how trust works in a saturated information environment. When advice is everywhere, the question is no longer who has the answer, but who can be trusted to guide choices among many possible answers.

Younger clients are looking for a curator and collaborator, and the advisers who recognize that will own the next generation of relationships.

How advisers can stay relevant

What makes young investors different is how they verify trust. Older investors tended to define trustworthiness primarily through the relationship itself, with years of personal history, in-person meetings, and continuity across family generations. Gen Z and Millennial investors still want that personability, but they expect it alongside measurable, professional indicators.

Our research shows young investors place greater weight on professional credentials, transparency around conflicts of interest, data security and verifiable performance against benchmarks.

These markers are particularly valuable in a world ripe with mass-produced AI advice. Professional credentials, for example, are one of the few public proofs that a person, not a machine, has demonstrated domain knowledge and expertise.

This measurable trust is what advisers can lean into to stay relevant. In our survey, approximately one third of Gen Z and Millennials already use generative AI to learn about investing. Generative tools will keep getting better at producing fluent-sounding advice, but fluency is not judgment.

Cut through the hype

Seasoned advisers bring years of seeing market cycles, regulatory changes, behavioral patterns and the outcomes of decisions that looked obvious at the time. That experience is exactly what cuts through hype. An AI tool may produce responses that sound confident, but it cannot replace competence.

For advisers, this reframes the scope of their work. Professionals are no longer the primary gatekeeper for investing. Clients now have access to an abundance of information. Instead, the job is to serve as a curator, validator and translator of an overwhelming digital landscape.

In some ways, that is a more demanding role, yet a more durable one. It means being fluent in the latest products your clients are reading about, including the ones you would not personally recommend, so you can have an informed conversation rather than a defensive one, and being ready to interpret a viral video or an output a client copied out of a chatbot.

Younger clients are not going to stop consuming content, but they want an expert whose true value lies in human judgment.

Communicating that value is now part of the job. Younger clients will not assume seasoned judgment is in the room but will look for evidence of it.

Treat credentials, professional experience and past performance as strategic assets that are clearly communicated to current and future clients.

Document conflict-of-interest policies in plain language and make them client-readable.

Show the work behind a recommendation, including supporting evidence, not just the conclusion.

At the same time, AI can be a useful tool to communicate the value proposition of adviser judgement. Used well, it removes the friction that prevents advisers from being successful curators and collaborators.

AI can help with drafting first-pass communications, summarizing trends, preparing for meetings and scaling personalized check-ins.

Nearly 70% of Gen Z and Millennial investors in our study who use a paid financial professional interact with their adviser at least monthly. That cadence is difficult to sustain without technology, but underlying those interactions is the adviser's expertise and judgment orchestrating those communications.

Voice of reason

But the deeper reason younger clients want a human adviser is that the world has become a noisy place, and navigating the signals and products can be overwhelming and lead to rash decision-making.

Over half of Gen Z and Millennial investors in our research have already made at least one investment driven purely by fear of missing out (FOMO), most often in cryptocurrency.

As markets continue to show volatility, and as new investment opportunities emerge, the adviser's role is to be the person on the other end of the line when the next market dip arrives, the next can't-miss asset surfaces, or the noise of information gets too loud.

The point is not to chase every trend or reflexively dismiss new products or opportunities, but to be a voice of reason and stability. A credentialed, experienced professional who can keep clients aligned to their long-term goals and strategies; steadfastness becomes even more valuable in a noisy environment.

The advisers and firms who successfully adapt to the next generation will not approach AI as a threat, nor as a replacement for the adviser-client relationship.

They will be the ones who use technology to amplify their reach, and focus on their human qualities of judgment, accountability, ethical stewardship and demonstrated experience, which no algorithm can fully capture.

Genevieve Hayman, PhD, and Ryan Munson are co-authors of the CFA Institute Research and Policy Center report Next-Gen Investors: A Guide for Wealth Managers and Financial Advisers.

Genevieve Hayman is a senior manager of macrosystems and foresight at CFA Institute. Her research focuses on pensions and retirement security, complex systems, cognitive science and the long-term forces shaping global finance. In her role, she develops structured, long-horizon scenario frameworks that examine how technological, economic and regulatory shifts may reshape financial markets, institutional behavior and professional norms. She also contributes to early-warning frameworks and cross-pillar integration across CFA Institute's research agenda.

Ryan Munson is a research manager at CFA Institute. His research focuses on pensions and the future of finance, exploring how extra-financial factors impact the investment industry and investment professionals. Ryan serves on the advisory board for the Mercer CFA Institute Global Pension Index. He is the author of several CFA Institute publications, including the Future State of the Investment Industry, the Future of Work in Investment Management series and the CFA Institute Investor Trust series.

Related Content

• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
• Have a Retirement Question? AI Can Answer That
• How Gen Z’s Retirement Planning and Investing Are Different
• Many Older Adults Lack Financial Security: What Can We Do?

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Research shows that most high-net-worth (HNW) clients are already charitable. They donate to causes they care about, support organizations in their communities and often want philanthropy to play a meaningful role in their legacy.

Yet many lack a cohesive giving strategy that ties charitable giving to clearly defined objectives and integrates within their broader financial and estate plans. Bridging the gap between intention and strategy is where advisers can provide real, differentiated value.

Recent data highlights how much HNW clients really value these discussions. According to the 2026 TPI Study of The Philanthropic Conversation, 88% of HNW clients consider it important to discuss philanthropy with their advisers, and 80% believe advisers have a professional or ethical responsibility to raise the subject.

Advisers have largely caught up to that expectation: 96% now view it as their obligation, a significant increase from 62% in 2018. The alignment is there, but the next step is ensuring these discussions move from one-off, year-end conversations into a consistent bullet point on the planning agenda.

1. Understand what motivates clients to give

Before diving into giving vehicles and technical solutions, the first step in helping clients build a strategic giving plan is understanding why they are motivated to give in the first place.

Advisers often assume clients' philanthropy is driven primarily by tax considerations, but the data suggests clients are most motivated by purpose and impact rather than deductions.

The TPI study found a notable disconnect between adviser perceptions and client priorities. Advisers identified "being an inspiration to others" as the top motivation for charitable giving, while clients ranked "making an impact" highest.

Furthermore, 40% of advisers cited taxes as a key motivator, compared to only 21% of clients.

For advisers, philanthropy offers a unique opportunity to connect with clients on a deeper level beyond portfolio performance and investment returns.

Asking targeted questions around charitable goals often reveals what clients care about most, and uncovers personal aspirations, legacy goals and family dynamics that may not come up during traditional financial planning meetings.

When clients feel understood on that level, the adviser relationship becomes more meaningful and durable.

2. Match giving vehicles to goals

Once a client's motivations and priorities are clear, the next step is helping them select the charitable giving vehicles and strategies that best support their goals.

According to the TPI study, 34% of clients are interested in integrating charitable objectives into their broader wealth management plans, reflecting a growing desire for philanthropy to be intentional rather than reactive.

Different charitable vehicles serve different purposes, and the right approach depends on the client's goals, assets and desired level of involvement.

• Donor-advised funds (DAFs) suit clients who want flexibility, simplicity and an immediate tax deduction without the administrative obligations of a foundation.
• Private foundations make sense for clients seeking more control, a vehicle for multigenerational family engagement, and the ability to make grants, run programs or invest mission-aligned capital.
• Planned giving programs, including charitable trusts and bequests, work well for clients integrating philanthropy with estate and legacy planning.

It often makes sense for donors to use a combination of giving vehicles. Private foundations and DAFs are especially synergistic, providing more ways to give and maximizing financial outcomes.

Overall, moving from ad hoc donations to a more programmatic approach through structured vehicles makes it easier to incorporate philanthropy into a financial plan and enables steadier streams of funding for nonprofits.

3. Measure progress and impact

As philanthropy becomes more intentional, many donors want greater clarity on the impact of their charitable giving, but measuring that can be difficult.

According to the 2026 Foundation Source Donor Survey, 27% of donors identify impact measurement as a top challenge, while 33% say it is an area of strong interest.

Advisers can play an important role by helping clients define what success looks like from the outset. For some, success may mean donating a certain dollar amount annually or supporting a specific number of organizations.

For others, it may involve measurable outcomes tied to a specific cause, such as scholarships funded, families served or conservation goals achieved.

Strong relationships between donors and grantees can make a meaningful difference, too. Donors who engage regularly with the organizations they support often have a clearer view of how their grants are being deployed and the impact they have.

Encourage clients to maintain an ongoing dialogue with grantees — an open line of communication can foster a more collaborative environment and lead to more insight into results.

Just as importantly, charitable planning discussions should not happen only once a year. Embedding philanthropy into regular planning meetings allows advisers and clients to revisit goals throughout the year and better track progress.

Donors are becoming more deliberate about how they give and want it to feel purposeful, not piecemeal. Advisers have the opportunity to help clients structure their giving strategically to reflect personal values, involve the next generation, and sustain across market cycles and policy changes.

When you help a client turn charitable intentions into a structured giving strategy, you're not only serving their charitable mission, but also building the kind of relationship that lasts for generations.

The 2026 TPI Study of the Philanthropic Conversation was conducted between December 2025 to January 2026 among 300 professional advisors who advise high-net-worth (HNW) clients (those with $5 million or more in investable assets) and 103 HNW clients who participate in philanthropy. The study was co-sponsored by Foundation Source and DAFgiving360, with support from The Boston Foundation.

Related Content

• For More Flexible Giving, Consider Combining a Charitable Remainder Trust With a Donor-Advised Fund
• A Financial Planner Takes a Deep Dive Into How Charitable Trusts Benefit You and Your Favorite Charities
• I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your Dollars
• How to Maximize Your Impact With Strategic Philanthropy Tools
• Every Dollar Counts: How to Evaluate a Nonprofit

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

I recently listed my home for sale. Like most people, I spent the weeks leading up to the first showing making it look its best.

I repainted walls, handled the landscaping and finally addressed the small repairs and deferred maintenance I had lived with, and ignored, for years.

Ironically, the house looked better for the strangers walking through it than it did for the family that had called it home.

It struck me how often financial advisers do the same thing with their own firms.

We spend our careers helping clients optimize balance sheets, manage complex risks and think strategically about wealth.

Yet, when it comes to our own businesses, often among the largest personal assets on our balance sheets, many of us delay meaningful investment until a triggering event forces the conversation.

Whether it is retirement, burnout, succession planning or an unexpected shift in the market, many advisory firm owners start improving the business only when a potential buyer or partner comes knocking.

By then, they are not building. They are reacting. They are trying to capture value that should have been compounding for years.

The $100 million to $1 billion reckoning

The wealth management industry is entering a critical period, especially for firms with $100 million to $1 billion in assets under management (AUM). In this range, many firms encounter a ceiling of complexity.

The reliance on the founder's calendar, combined with the manual workarounds that helped a firm reach $250 million, often becomes the very thing that prevents it from reaching $1 billion.

A similar trend is playing out in the legal industry. For years, smaller law firms felt they could not compete with the resources of Big Law.

More recently, however, many have leaned into technology-enabled operating models, strategic partnerships and outsourced infrastructure to level the playing field.

The lesson for wealth management is clear: Scale is no longer just about headcount. It is about whether the firm's technology, workflows and operating infrastructure can act as a force multiplier.

The small-firm edge: Agility as a competitive advantage

There is a powerful advantage hidden in the $100 million to $1 billion space: The ability to pivot quickly.

Large, multi-billion-dollar firms often move slowly because of bureaucracy, legacy systems and multiple layers of approval. Smaller, nimbler firms can often pilot new technology, refine client experiences and adjust operating models in weeks, while larger competitors may take far longer to reach consensus.

By leaning into institutional-grade tools now, smaller firms do not merely catch up to larger competitors. They can out-innovate them by being more responsive, more focused and more willing to evolve.

The valuation gap between a founder-centric lifestyle practice and a scalable enterprise is widening. Strategic buyers and private capital are not simply looking for a list of client names. They are looking for a repeatable, durable business development process. They want a firm that can thrive even if the founder is not personally driving every interaction.

Advisers routinely counsel clients against concentration risk, yet many remain personally over-concentrated in a single fragile asset: A firm that cannot function without their constant, direct involvement.

Institutionalizing excellence

At Aspire, we believe high-level financial management should not be reserved only for the ultra-wealthy. Our mission is to help clients professionalize their financial lives by bringing them the best practices, sophisticated reporting and rigorous oversight often associated with institutional family offices.

To provide that caliber of service, we must first apply those same institutional standards to our own firms.

Michael Kitces and other industry observers have written extensively about the risks of founder dependency as advisory firms scale. The core idea is simple: A firm cannot scale sustainably if its growth, client experience and operating discipline depend entirely on the founder's personal heroics.

Based on the workflows that drive enterprise value, there are three areas where firms can build immediate equity by moving from a lifestyle mindset to an institutional one.

Standardize workflows. Client meetings may follow a general cadence, but there is wide variation across firms in the time required to prepare for meetings and complete follow-up afterward.

Acquirers want to see CRM-driven workflows where agendas, notes, tasks and next steps are documented and repeatable.

If the client experience is a process rather than a set of to-dos stored in the founder's head, risk goes down and valuation goes up.

Centralize planning. Advisers often get bogged down in the mechanics of financial planning: Tweaking projections, generating reports and managing the operational details behind each plan.

Transitioning to a dedicated core team of part-time or full-time specialists helps ensure that the firm's planning engine runs consistently across all clients. It demonstrates that the firm has a methodology, not just a lead adviser's intuition.

Integrate technology. Manual processes are a silent killer of firm value. If teams are still reconciling data between the CRM, custodian, client portal and financial planning platforms, they are increasing the margin for error.

Strategic buyers look for clean, automated data flows. This is not just a technology upgrade. It is a risk mitigation strategy.

Scale, partnership and controlling our destiny

Unlike a home sale, a firm does not always have to be an all-or-nothing transaction.

There is a common misconception that advisory firm owners have only two choices: Remain completely independent until they no longer work or sell the firm and walk away. The most strategic options often exist in the middle.

By investing in infrastructure now, firm owners can create the possibility of partial liquidity. That may allow them to take some capital off the table and diversify their personal net worth while still maintaining meaningful ownership, leadership and client relationships.

Clients today are looking for more than portfolio returns. They are looking for continuity. They want to know whether the firm serving them today will also be there for their children and grandchildren.

The best time to improve the curb appeal of our firms is long before the open house. If we invest in the foundation today, we are not just preparing for an eventual sale. We are building a much better business to own.

My interest in this topic stems from a desire to partner with like-minded firms that share this vision. I believe firms in the $100 million to $1 billion space are often better off operating together than apart.

Together, we can scale faster, share the burden of operational complexity, and capture value that is often unavailable to a solo practice.

Related Content

• Are You Ready to Go Upmarket? What Advisers Need to Know
• Build Relationships, Build Your Brand, Build Your Business
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• How to Position Your Business for a Lucrative Exit Despite Private Equity's Slowdown

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

It's no secret that many RIAs are looking to modernize their technology stacks and create a more personalized, digital experience for clients.

Based on my experience, the most successful RIAs that are achieving top-decile organic growth and strong client outcomes tend to share one strategy in common: They are segmenting their business.

Segmentation is the process of dividing an adviser's client base into distinct groups based on needs, behaviors, profitability, growth potential, complexity and other characteristics.

With the right structure, advisers can match different clients with the service models, pricing, custodial setups and technology solutions that best suit them.

The result is a streamlined practice structure where larger client relationships still receive the depth of service they need, while smaller accounts can be serviced effectively without draining adviser capacity.

However, when I mention "client segmentation" to RIAs looking to scale, the initial reaction is often skeptical. Many associate it with added overhead, operational risk and more complex workflows.

Without the right preparation, partners and technology, client segmentation can indeed slow advisers down and cause the very friction it is designed to remove.

The good news is that RIAs can take clear, proactive steps before committing to segmentation to ensure it aligns with their broader strategy and timing. With the right partner, advisers can:

Determine if segmentation is right for the practice

Based on their current assets under management (AUM), as well as their appetite for risk, ability to weather potential temporary disruption and goals for growth, advisers can figure out whether their practices are at the right point in their development to implement client segmentation.

This strategy tends to work well for firms that have accumulated more than $250 million in AUM and are outgrowing their initial niche specialization. There will also be some degree of short-term disruption for any firm that adopts this strategy, since segmentation can sometimes involve parting ways with clients who no longer fit the practice.

Run profitability analysis

Using visualization tools, advisers can model the financial impact of client segmentation on their existing books, as well as calculate the cost-to-serve ratio across all segments.

These tools can also calculate what minimum fees would be necessary, following the implementation of client segmentation, to ensure their practices can remain independent and profitable.

Design tier structures

Advisers can work with partners to figure out how many segments need to be created based on their current books and then which service levels and other factors should be assigned to each segment. They can also plan for how to balance meaningful upside with any potential disruption.

Build operational infrastructure

To ensure their technology can support client segmentation, RIAs can prepare their billing solutions for tiered pricing, utilize analytics tools to make lower-tier segments more profitable and configure their CRM systems to track different segments.

Roll out sequentially and manage client communication

When solutions enabling client segmentation have been onboarded, RIAs can roll out the new service models beginning with the top strategic accounts and then continue down the line to lower-margin and at-risk clients.

Advisers and their partners should also deliver personalized messages about any changes — from fee increases to new adviser assignments — to individual clients in a timely manner.

Track progress

To monitor if client segmentation is helping meet desired goals, RIA firms can establish baseline metrics for what success should look like at 90 days, six months and 12 months after implementation.

Outstanding service works best with guardrails. When RIAs attempt to serve all clients the same way, they often end up serving no one exceptionally.

A one-size-fits-all approach doesn't make sense if you're working with a $500,000 Millennial couple and a $20 million executive nearing retirement who have different strategies, financial planning needs and specializations.

Client segmentation gives RIAs the freedom to define investment strategy, adviser involvement, planning depth, pricing and more for every client — and excel at serving them accordingly.

Over time, this strategy can deliver positive outcomes, high-quality engagement and a competitive advantage.

With the right team and technology in place to mitigate friction, RIAs can unlock the full value of client segmentation and serve the next generation of clients while delivering sustainable growth for years to come.

Related Content

• Starting to Advise Ultra-Rich Clients? Don't Rebuild Your Firm, Just Rethink It
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• To Win HNW Clients, Consider an Unbundled Advisory Model That Delivers Objective Oversight
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Not long ago, I sat down with a client who was exhausted from revisiting the same financial decisions again and again.

We had already mapped out their cash flow, identified how much they could save each year and built a plan that balanced retirement, college funding and a few shorter-term priorities.

On paper, everything still held up, and nothing in their situation had meaningfully changed. Yet, as we talked, we found ourselves circling back to many of the same questions — whether more should go toward the mortgage, whether college savings should take priority and whether holding additional cash might provide more comfort.

It wasn't a lack of effort or understanding. It was the emotional weight attached to each choice.

When priorities compete for the same dollar

One of the most common reasons people revisit financial decisions is that those decisions rarely stand on their own. Most families are trying to make progress on several goals at once, each of which feels important and justified.

Retirement, supporting children, managing debt and preparing for the unexpected all draw from the same pool of resources. There's rarely an easy way to cleanly separate them.

Even after we go through a structured planning process and identify a clear amount of surplus cash flow, deciding exactly where each dollar should go can still feel unsettled. The numbers provide direction, but they don't eliminate the trade-offs.

That's often where second-guessing begins.

Why decisions don't always feel settled

Financial decisions are rarely just about math. They're shaped by personal experiences, values and emotions that don't always line up neatly with a spreadsheet.

I've worked with clients who feel strongly about paying off their homes as quickly as possible because of what that represents, even when other strategies might be more efficient. Others consistently prioritize their children's future ahead of their own long-term security, driven by a deep sense of care and responsibility.

These are thoughtful decisions, but they can make it harder for a plan to feel fully resolved.

Mindset also plays a significant role in how people process financial decisions. Some people naturally operate from a place of trust and long-term optimism, while others carry a persistent fear that something could still go wrong, even when the numbers suggest otherwise. That doesn't make them irrational. It makes them human.

But when fear quietly drives every decision, it becomes difficult for any plan to ever feel fully settled.

Recognizing when someone is stuck (and how an adviser can help)

It becomes fairly clear when someone is caught in this type of loop. The same topics keep coming up, often with the same analysis and conclusions. There's engagement in the conversation, but also a lingering hesitation. A sense that the decision hasn't quite landed.

At that point, continuing to refine the numbers usually isn't what moves things forward.

What helps is reconnecting the client to the broader plan and making the outcomes more tangible. When we model different scenarios and show how decisions play out over time, it often brings a level of clarity that conversation alone can't.

We also focus on progress rather than perfection. Clients don't need to have everything figured out immediately to keep moving in the right direction.

The cost of constantly revisiting decisions

There's a practical impact to repeatedly revisiting financial decisions, but the mental toll is often just as significant.

I've seen clients wear themselves out trying to optimize every choice, running through the same scenarios without arriving at a different answer. Over time, that kind of repetition can lead to fatigue.

When that fatigue sets in, it becomes harder to stay consistent, even when the plan itself is solid. In some cases, repeatedly revisiting financial decisions can become a habit in itself — a cycle of seeking certainty that never fully arrives.

At some point, the issue becomes less about whether the strategy works and more about whether it feels dependable enough to follow.

What a strong financial plan is meant to provide

A well-constructed financial plan does more than outline what to do next. It gives you a framework you can return to when doubt starts to creep in.

If your circumstances haven't materially changed, there's usually a reason the plan hasn't, either. Revisiting it can reinforce why certain decisions were made in the first place.

In many cases, what people need isn't a new strategy, but a clearer connection to the one they already have.

Confidence builds over time by staying consistent and seeing that plan play out. The goal isn't to remove uncertainty from life. It's to reduce the need to keep starting over every time doubt appears.

Related Content

• Divide and Conquer: Your Annual Financial Plan Made Easy, Courtesy of a Financial Adviser
• I'm a Financial Adviser: When Managing Your Wealth Feels Like a Pain, Simplify
• I'm a Financial Adviser: These 3 Questions Can Help You Navigate a Noisy Year With Financial Clarity
• Feeling Too Guilty to Spend in Retirement? You Really Need to Get Over That
• Are You Hesitating to Spend Money You've Spent Years Saving? Here's How to Get Over It, From a Financial Adviser

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Once upon a time, an average team faced a simple but frustrating problem: Their basketball was stuck high in a tree.

The team captain removed his shoe and threw it at the ball, hoping to knock it loose. The shoe fell back to the ground, while the basketball remained firmly lodged in the branches.

On their second attempt, the average team concluded that the issue was the strength of the team captain. After assessing each team member, they chose Joe, whose greatest strength was his throwing power.

Joe took a few practice throws, adjusted his stance and launched the shoe toward the basketball. The result, however, was the same: The ball stayed exactly where it was.

For their third attempt, the team shifted from strength to strategy. They conducted a team planning session, carefully analyzing the situation. They studied the structure of the tree, examined the branches and mapped out the precise point the shoe needed to hit to dislodge the ball.

When they implemented their plan, everything went exactly as they designed it. Yet, despite their perfect strategy, the basketball remained stuck in the tree.

Across the street, another team had been observing the situation. After watching the third attempt, they walked over to offer their help. The other team assessed the tree and then the shoe.

Without much hesitation, they threw the shoe into the tree, lodging it alongside the basketball.

The average team reacted immediately with frustration, pointing out that the situation had only worsened now.

Calmly, the other team responded that they did not make the problem worse. Instead, they removed the thing (the shoe) that was preventing the average team from seeing the obvious solution.

They then pointed to a ladder nearby.

How this relates to running a business

I've consulted with thousands of businesses, mostly RIA firms, for nearly 25 years now. And I have observed the pattern illustrated in the above story at many different levels and in firms of every size.

The distinction between the two teams is subtle, but significant. The average team believed the problem was the basketball stuck in the tree, and they focused all of their effort, strength and planning on dislodging it.

What they failed to recognize was that their solution — the shoe — was in the way. Until the shoe was removed, no amount of additional strength, effort or strategic planning would change the outcome … unless they were lucky.

In my years of consulting, I have found that from the outside, the best-run firms appear remarkably similar to their peers. They offer comparable services, serve similar clients and often rely on much of the same technology. The difference is not visible on the surface, unless you work inside those firms.

Internally, the best-run firms operate with a fundamentally different kind of logic. Their effectiveness, performance and growth rates are driven less by perfect strategies and more by how they think about problems.

They move faster not because they do more, but because they simplify decisions, identify what matters most and act on them without hesitation.

This logic is the defining difference between average growth and exceptional growth.

How the best-run firms separate themselves

I have been able to observe this clearly through the length and depth of our consulting relationships, many of which span years and even decades.

That kind of sustained engagement provides a unique vantage point: We are able to see not just what firms say they will do, but what they consistently do over time and how those decisions compound.

The best-run firms separate themselves because of this discipline.

The firms that have grown from small practices into national leaders, many of which I have had the privilege to work with, did not achieve their success by refining the equivalent of the shoe.

They achieved it because they consistently recognized when the method itself had become the problem. In doing so, they avoided the trap of repeated effort, the kind that consumes time and capital and ultimately exhausts talented people without producing meaningful results.

By contrast, average firms tend to spend significant time discussing their challenges, analyzing their situation and documenting their strategic or growth frameworks (or learning someone else's).

They provide detailed explanations of leadership dynamics, communication preferences, planning processes and internal meeting structures.

While these efforts are well-intentioned, they often fail to isolate the single limitation that is actually slowing their progress.

In many cases, the focus shifts toward improving performance within the existing approach rather than stepping back to question whether the approach itself is the problem. As a result, energy is applied in ways that feel productive but do not change results.

The best-run firms collapse and simplify that entire mentality. Instead, they operate from a more fundamental understanding: At any given moment in the growth of a business, there is a bottleneck (in consultant-speak, it's known as the Theory of Constraints) that limits the organization's ability to move forward.

Just as important, they have accepted that this is not a one-time exercise. Each time a constraint is removed, another emerges. Progress is achieved through continuous identification and removal of what is in the way.

Where these firms' success comes from

The effectiveness of these firms comes from their discipline. They do not get distracted by complexity, nor do they confuse activity with progress.

They remain focused on the single question that matters most: What is in the way, right now, today?

Once identified, they act decisively to eliminate or replace it and then immediately turn their attention to what follows. Over time, this creates a compounding effect that is often mistaken for superior strategy, talent or marketing, when in reality it is the result of consistent, focused implementation.

I understand that not every firm aspires to be the largest or most prominent business. However, regardless of size or ambition, the responsibility of leadership remains the same.

Your role is not to perfect every system, satisfy every preference or refine every strategy.

Your role is to identify what is preventing progress and remove it.

In other words, stop throwing the shoe — and go get the ladder.

Related Content

• If You Want Your Employees to Embrace AI, You Need to Let Them Have a Say in How It's Used
• I Met With 100-Plus Advisers to Develop This Road Map for Adopting AI
• Build Relationships, Build Your Brand, Build Your Business
• The Referral Revolution: How to Grow Your Business With Trust
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In recent years, portfolio construction conversations often centered on where returns might come from next.

For the remainder of 2026, the starting point is shifting back toward a different question of how portfolios may behave if markets don't move as expected.

That change reflects a broader reassessment of diversification and downside management, particularly after recent market shifts challenged long-standing assumptions.

Take the 2022 market as an example. Stocks and bonds declined together, and the diversification benefit that many investors expected from fixed income did not materialize. Bonds worked as a hedge during previous market downturns, including the 2008 global financial crisis.

But more recently, correlations have proven less stable. While stock-bond correlations moved back toward negative territory after 2022, they have shown signs of shifting again. For advisers relying on a traditional 60/40 framework, that variability matters.

At the same time, ETF usage continues to expand as advisers refine portfolio construction tools. U.S.-listed ETFs gathered more than $1.5 trillion in net inflows in 2025, the highest annual total on record, according to State Street.

The report highlights how ETFs are increasingly used for targeted exposures and portfolio precision rather than solely broad index replication.

Within that broader growth, defined outcome and buffered ETFs have continued to gain traction. Assets in U.S.-listed defined outcome ETFs have grown to about $70 billion, with several billion dollars in net inflows in 2025, according to ETF Database's 2025 category analysis.

Forward-looking data also suggests sustained interest. In Brown Brothers Harriman's 2025 Global ETF Investor Survey, 29% of respondents indicated plans to allocate to buffered or defined outcome ETFs over the next 12 months.

Taken together, these figures suggest that defined outcome strategies may be moving beyond niche status and becoming more integrated into adviser toolkits.

Why now?

One factor could be renewed attention to how diversification functions in different market regimes. If stock-bond correlations are not consistently negative, relying solely on fixed income to provide downside protection may not deliver the expected results.

That has prompted some advisers to consider alternative approaches to managing equity risk while maintaining participation in the equity market.

Another factor is portfolio positioning. Despite strong equity performance over the past several years, elevated levels of cash and cash-like allocations remain in the system.

For some investors, re-entering markets with defined parameters around downside risk can provide a structured path back into equities.

When clients understand the range of potential outcomes in advance, including both the upside limitations and the downside buffers, conversations during volatile periods often become more grounded in agreed-upon parameters rather than short-term market headlines.

How does it work in practice?

In practice, advisers are incorporating defined outcome ETFs in several ways.

Some are carving out a portion of a core equity allocation, for example, within U.S. large cap exposure, and replacing it with a buffered strategy that maintains exposure to the same asset class while incorporating a predefined level of downside protection.

Others are using buffered ETFs as a redeployment vehicle for cash. Rather than moving directly from money markets into full equity exposure, advisers may choose a structure that provides participation on the upside while defining downside parameters.

A third approach involves carving out a portion of fixed income and reallocating to a buffered equity strategy. The goal in this case is not to eliminate fixed income, but to increase equity participation while incorporating a built-in layer of protection that does not depend on bond-equity correlation dynamics.

As these strategies have grown, misconceptions have emerged. One of the more common views is that the return cap embedded in many defined outcome structures represents an added "fee."

Structurally, the cap reflects the economic trade-off required to finance the downside-protection component.

Advisers evaluating these strategies must weigh that tradeoff in the context of client objectives and risk tolerance, but it is distinct from an explicit management fee layered on top of market exposure.

Bringing risk management to the fore

None of this suggests that traditional asset allocation frameworks are obsolete. Bonds continue to play an important role in income generation and duration management.

But recent market experience has reinforced a broader point that risk management considerations must be incorporated at the asset allocation stage, before they are urgently needed.

For advisers in 2026 and beyond, that shift is less about forecasting market direction and more about structuring portfolios with defined expectations. In that sense, risk management is not a defensive afterthought. It is becoming a core design principle.

Related Content

• Buffered ETFs for a Rocky Market
• 'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour Aftertaste
• How to De-Risk Your Portfolio in 5 Different Scenarios
• Five Ways to Safeguard Your Portfolio in Market Downturns
• Is Your Portfolio Overweight? How to Rebalance Your Way Back to Diversification

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As we near this summer's 250^th anniversary of America's creation, the independent spirit is strong. It's certainly creating more millionaires, a number that has doubled since 2020.

The next-level wealth is out there, too, with Forbes reporting that $1.17 million to $2.7 million in net worth puts someone in the nation's top 5%.

For independent advisers seeking more of these HNW clients, the opportunity — and challenge — is clear: How do you stand out in a landscape crowded by banks, major wire houses and other independents?

There's a reason you became an independent adviser, and that needs to show; it's your unique brand and core values. But just as important, how does your independence benefit the high-net-worth client?

Full-service integration is key, but there's a distinction between internal* and external professionals who can add to your advisory services. When you outright explain that distinction and its benefits to the client in front of you, you can win business with clarity and conviction.

What high-net-worth clients want (and expect)

High-net-worth clients rarely deal with simple planning issues. Their lives often include closely held businesses, trusts, estate questions, charitable goals, tax complexity and family dynamics across generations.

They need more than investment management. They need advice that fits together across legal, tax and financial decisions.

Generally, firms are making two main choices: Either bringing legal and tax professionals into the same office,* or relying solely on external legal and tax professionals to supplement the firm's core comprehensive (Income, Investments & Wealth Management, Tax, Health Care & Wellbeing and Estate & Legacy) financial planning services.

Types of Integration

As many independent firms grow, there is often a desire to add services internally* that were once external. Advisers will choose to bring legal and/or tax professionals together in the same office* to have a differentiator, a potential advantage over those who do not.

"Comprehensive financial planning" can be marketed as a convenience for clients, who can meet with all their financial professionals in the same office, perhaps on the same day — a total experience held under common ownership, control and operation.

For external integration, advisers choose to maintain traditional comprehensive financial planning functions while using separate tax and legal professionals outside the firm, working with them in ongoing relationships to serve the same client.

This can offer an unbiased perspective and oversight from outside the firm, as well as a similar level of integrated services (given well-defined external relationships).

Internal vs external integration

The appeal of the internal model* is easy to understand. A firm can coordinate and collaborate tax and legal functions (with proper verbal or written authorization) in a streamlined process and offer clients one office, one team and one brand. That sounds efficient and marketable.

But advisers should be honest about a potential tradeoff. Convenience is not the same as independence. When one firm controls investment, tax and legal planning, the client may get a seamless experience, but not enough independent outside oversight.

When the other disciplines, be they tax or legal, answer to the wealth management leadership, they often become beholden to them. Advice may still be coordinated and collaborated, but it's not independent when the same firm wears multiple hats, creating new, unnecessary liabilities and conflicts of interest for the firm and its clients that a true independent model avoids.

That is where an unbundled model can stand apart. The external integration model does not mean working alone. It means the client benefits from independent professionals across key disciplines.

In practice, that often means the adviser coordinates and collaborates (with proper verbal or written authorization) the overall strategy, while outside attorneys and tax professionals provide legal and tax guidance.

Those external professionals are not held under common ownership, control or operation of the financial adviser. They are free to agree, question or push back based on their own professional judgment. That creates checks and balances.

That is not fragmentation. It's coordination and collaboration.

True independence

Many advisers chose independence for good reasons. They wanted to move away from quotas, product pressure, cross-selling and centralized control. They wanted more freedom to serve clients well.

Yet some firms slowly rebuild the same structure they once rejected. They add departments, bundle services and create an internal system that starts to resemble the big institutions they left behind. The branding looks different, but the operating model feels familiar.

That should raise a hard question: Are you truly independent, or have you re-created a smaller version of the same model?

This is not a knock on growth. It's a warning about drift. If every professional involved in the client relationship is held under common ownership, control and operation, your model may be less independent than your messaging suggests.

Labels and messaging to attract HNW clients: Don't muddy the waters

Many high-net-worth clients meet advisers through various channels, including referrals, ads, seminars and centers of influence in their phone's social scroll.

The advisers they see in these channels often label and market their HNW services in many ways. Independent advisers often adopt titles such as "family office," "integrated wealth manager" or "private client services."

The trouble? These labels can mislead.

For example, "family office" is legally defined by the SEC as a firm that:

• Provides advice only to family clients (lineal descendants and certain key employees)
• Is wholly owned and controlled by family members or family entities
• Does not hold itself out to the public as an investment adviser

Most independent firms don't meet this definition, which can create confusion.

"Private client" was originally a bank term denoting exclusivity and white-glove service, but that doesn't necessarily describe integration.

Ultimately, it can be helpful to drop titles that don't fit. Instead, consider terms like "high-net-worth services" or "integrated wealth management."

More importantly, take time to explain your actual process. Explain exactly how your teams, internal and external, actively coordinate and collaborate for the client's benefit across their financial spectrum.

The HNW takeaway

In an industry where terminology can cloud the picture, the advisers who win are those who clarify how their assembled team delivers real integration. They do this with transparency and client-first planning.

Ultimately, clients need a planning structure and professionals who can work together for them, combining coordination and collaboration with objective review and oversight. That's the real message. True independence means independence for all involved, including the client.

If you can explain that plainly in the high-net-worth world, you offer something many firms do not.

* Tax Services (tax advice, tax returns & forms preparation & filing) and Estate Planning Services (legal advice, estate planning legal document preparation & execution) may be housed in the same or nearby office. However, they must be separate legal entities from your investment advisory and/or insurance practices (i.e., they may be held under common ownership, control, or operation).

Related Content

• How Advisers Can Establish Relationships With HNW Prospects
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• How Financial Advisers Can Build Retiring Clients' Confidence
• What the Great Wealth Transfer Means for Financial Advisers
• How Financial Professionals Can Build Trust With Clients

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Today's investment environment is driving increased demand for growing income, supported by falling interest rates, persistent inflation and a growing population of retirees.

This demand feeds into financial advisers' allocation priorities — and it's a major reason Bahl & Gaynor now offers a suite of active ETFs.

From a portfolio construction standpoint, active ETFs offer several potential advantages, though these can vary based on market conditions, implementation and individual investor circumstances:

• Potential tax efficiency driven by a lower likelihood of capital gain distributions and deferral of internal gains
• Exposure to certain allocations in a single 'line item' for simplicity and clarity of positioning
• Possible reduction in cash drag through the smaller cash positions permitted by the ETF creation/redemption mechanism
• Intraday liquidity, enabled via the ETF creation/redemption mechanism, but subject to market conditions
• Competitive ongoing operating cost vis-à-vis the mutual fund structure

How these potential advantages are used often depends on how a financial adviser structures their practice. We observe two common practice models among advisers: Separately managed account (SMA)-centric practices, and adviser-as-portfolio manager practices.

SMA-centric practices

SMA-centric practices place SMAs at the center of client allocations. This typically covers core exposure to large cap domestic equities. It can also emphasize income generation and growth, particularly for clients approaching or in retirement.

Active ETFs can enable additional income exposure in this practice model. For example, an adviser may allocate to bullet maturity ETFs, collateralized loan obligation ETFs, and dividend growth ETFs to complement the income-producing capabilities of a large cap equity SMA allocation.

We often see strategies such as Bahl & Gaynor's smig® - Small/Mid Cap Income Growth ETF (SMIG) used alongside large cap equity income SMA allocations as a line item that extends income-generating exposure into often-overlooked small and mid-cap dividend-paying companies.

Adviser-as-portfolio manager practices

Other advisers structure their practices around a core discretionary equity model that their team manages, which may include a combination of individual equities, mutual funds, direct index exposure, and both passive and active ETFs.

Advisers often manage portfolios to a strategic asset allocation and risk profile, but they typically retain flexibility to achieve desired outcomes through a wide variety of solutions. For example, some advisers may add active dividend growth ETFs to complement the individual equity exposure they already manage on behalf of clients.

An adviser may pair their individual equity exposure with a dividend growth strategy like Bahl & Gaynor's Income Growth ETF (BGIG) as part of an approach to increase income production or as a completion portfolio for individual equity positioning.

Lessons learned from building an active ETF suite

Bahl & Gaynor's journey toward offering a suite of dividend growth ETFs has not been linear. It has evolved over time as we scaled our ETF family. What has remained consistent is our focus on maximizing flexibility for advisers and their clients in achieving important goals.

As we built our active ETF suite, several key decisions shaped both implementation and adviser usability. These included:

• Transparent vs semi-transparent holdings
• Investment strategy liquidity fit
• Clarity of targeted client outcomes

Transparent ETFs are the overwhelming choice for advisers today, but as an issuer this was not such a clear-cut decision when we launched our first ETF in 2021. But our firm's commitment to SMAs was also a commitment to transparency in how we manage client funds. Selecting a fully transparent structure for our ETF offerings harmonized with this foundational commitment.

It is also important to recognize that the vehicle in which a strategy is held does not change the underlying liquidity profile of strategy holdings. We wanted to ensure the underlying liquidity of our strategies would harmonize with the active ETF structure. We have found the ETF creation/redemption mechanism to be an effective structural mechanism for new and departing shareholders in this regard.

There are now more ETFs trading than individual public companies in US markets. This has created a "sea of same-ness" in terms of passive and active investment solutions in the ETF wrapper.

When we began building our ETF franchise, we wanted to ensure that our targeted client outcomes were clearly stated to transparently align with adviser and client goals. We focus on clearly defined client outcomes — strategies designed to generate growing income, downside risk protection and long-term alpha generation — to help advisers align allocations with client expectations.

Conclusion

The growth of active ETFs reflects more than just a shift in vehicle structure — it reflects a shift in how advisers build portfolios. Flexibility, transparency and tax efficiency are increasingly essential, but equally important is the alignment of investment strategies with how advisers build portfolios across different practice models.

Dividend growth strategies, delivered through the ETF wrapper, offer a versatile solution, capable of serving as a complementary allocation within SMA-centric practices or as a core building block within adviser-managed portfolios.

Ultimately, the value of the structure is realized not just in its features, but in how effectively it helps advisers deliver on client objectives with clarity and consistency.

As the ETF landscape continues to evolve, we believe the combination of disciplined investment strategies and flexible implementation will remain central to helping advisers and their clients navigate an increasingly complex market environment.

This material is for informational purposes only and does not constitute investment advice or a recommendation. All investments involve risk, including the possible loss of principal. Dividend payments are not guaranteed and may be reduced or eliminated. ETFs are subject to market risk and may trade at a premium or discount to net asset value. Any discussion of tax efficiency is general in nature; outcomes will vary based on individual circumstances. References to specific strategies are for illustrative purposes only.

Related Content

• The Best ETFs to Buy for 2026 and Beyond
• 5 Dividend Growth ETFs to Buy
• Why Invest In Mutual Funds When ETFs Exist?
• Asset Allocation for Retirees: Five Things to Consider
• Tech Has Simplified Direct Indexing, and That's Not the Only Reason Financial Advisers Should Make the Leap

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In the past few years, something has shifted in how RIA firms talk about the future.

Selling your RIA to private equity used to be a finishing move, a reward at the end of a long and (hopefully) successful run. Today, private equity comes calling earlier and faster than some firms anticipate.

For many founders, the call is getting harder to ignore.

The numbers tell a clear story. In 2025, RIA mergers and acquisitions hit a record 466 announced deals. That's a 27% jump over the year before, and 72% of those deals were powered by private equity.

I understand the appeal. The pitch is compelling: High valuations, succession solutions, access to capital and a well-developed infrastructure.

But in my conversations with advisers across the country, I'm hearing something that doesn't make it into the press releases: Some of the advisers who sold are now asking whether it was worth it.

Private equity has played an important role in professionalizing and scaling many firms in our industry. At its best, it can help bring capital, infrastructure and strategic discipline that can accelerate growth.

Some of the most successful partnerships tend to be with firms that already have a strong organic growth engine and a clear sense of who they are.

There is a key consideration in decision-making here to frame your decision, and most people blur it when they shouldn't. Selling to private equity vs selling and becoming a W-2 employee are actually two very different economic and identity choices.

Not all liquidity events are the same — some preserve independence and amplify it. Others, over time, replace it with employment.

How ownership structure shapes independence

Private equity firms are structured to generate returns for their investors, typically within a defined time horizon. That model can bring focus, discipline and resources.

At the same time, it's worth understanding how that structure aligns with a profession built on long-term relationships and client outcomes.

In the PE partnership model, you're often helping create the next multiple. In a W-2 structure, you're typically operating inside a multiple that's already been paid for and needs to be sustained.

Growth is not an outcome — it's a habit. Whether you are independent or partnered with private equity, firms that grow consistently have one thing in common: A repeatable, disciplined approach to generating new client relationships.

For some advisers, changes to autonomy can be a meaningful consideration. According to research from Cerulli, 52% of RIAs cited loss of autonomy in operations and service as a major concern when affiliating with a PE-backed consolidator.

Around the same number were concerned about a reduction in their overall autonomy.

While firm owners may benefit from these arrangements, employees lower on the organization chart can be left without any stake at all.

Advisers and other team members who were once promised a partnership path to equity ownership have seen wages suppressed, been pressured to take on more clients than they were comfortable with and watched their path to ownership evaporate.

That's a hard thing to explain to someone who joined your firm because they believed in what you were building. That said, many firms navigate this transition successfully but it requires intentional leadership and clarity around culture, incentives and long-term vision.

The question every RIA owner should ask

In my conversations with RIA founders around the country, I consistently hear some version of this: "We want to grow, but I just don't see how we can do it without outside capital."

PE firms promise this capital, along with access to the latest technology and top talent. The question worth asking before signing is whether those resources come with strings that fundamentally change how you serve your clients and run your firm.

The most important question isn't just valuation it's: Do you still want to be an owner and operator, or are you ready to transition into a different role?

Advisers at independent firms know who they're working for and why. That clarity can change when a firm becomes part of something that's being built toward a future liquidity event.

To be fair, selling to a PE-backed firm can be the right growth strategy for some RIAs. But a key decision is whether you're transitioning into an employee role or maintaining control as an owner, and it's critical to understand the difference.

It's worth acknowledging the structural tension between a model designed for short-term returns and a profession that relies on long-term relationships.

How independent RIAs can grow

None of this means independent firms are stuck. Growth without outside ownership may have challenges, but it's very doable.

Here are four ways to approach it:

Organic growth is your superpower. Independent firms that define a clear market specialty tend to grow organically through client marketing, events and prospecting at higher rates than those who don't specialize.

Specificity fuels referrals, deepens expertise and builds a brand that's hard to replicate. That often means consistently generating a defined number of new client conversations each month and treating that pipeline as a core business discipline, not an afterthought.

Enablement without control. There are models that aim to provide capital and support while preserving independence. For example, AE Wealth Management, where I am the president, offers capital solutions that can assist advisers with future acquisitions, plus business and employee development to help toward future growth. Those are often done in the form of a minority investment.

Leverage the right partner for scale without sacrifice. Your choice of asset management platform plays a significant role in your ability to grow. The right partner should do more than manage investments; it should function as an extension of your firm.

Firms that leverage integrated platform partners such as AE Wealth Management, for example, get access to customized portfolios, alternative investment options, ready-to-implement marketing programs and back-office support, all from one team focused on your success.

Product selection is also a factor, as access to a wider range of products is a key differentiator for independent firms.

Invest in your people before someone else offers to. One of the most common exit triggers is the absence of a clear succession path for the next generation of advisers in a firm. Building internal equity tracks and leadership development programs addresses that problem before PE shows up with an offer that solves it on someone else's terms.

Use your independence as an asset. Clients notice when their adviser's firm changes hands. Many don't understand the implications of PE ownership, but they understand the question, "Who actually owns this firm, and what are their incentives?"

An independent, founder-led firm can answer that question clearly. As consolidation continues, that's becoming a genuine differentiator.

The case for staying independent

AE Wealth Management was founded by people who believe in the independent adviser model. We think independence is increasingly a signal, not just a structure. It tells clients their adviser's interests are aligned with theirs, not with a holding company's exit timeline.

The advisers who will continue to thrive in this environment have built great firms designed to last. As consolidation through outside ownership continues to reshape the landscape, that kind of staying power is becoming a differentiator clients notice and value.

The goal isn't to avoid partnership — it is to enter it from a position of strength. And regardless of the path you choose, one principle holds: Your most important KPI isn't AUM — it's whether you know where next month's clients are coming from.

Related Content

• Old Annuities Contain Untapped Potential for Clients and Advisers: Here's Why
• Why Financial Advisers Will Benefit as Google Shakes Up Financial Research
• Private Equity Is Fundamentally Changing: What Now for Investors and Business Owners?
• How to Position Your Business for a Lucrative Exit Despite Private Equity's Slowdown
• I'm a CFP: Here's What You Should Do if Your Financial Adviser's Firm Gets Acquired

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The gap between firms that have built AI workflows and those still running on legacy tools is widening.

Firms with integrated AI are doing more client work with the same staff. If you are still evaluating, you are not holding your position. You are losing ground.

Google's AI ecosystem is worth a close look because it runs on infrastructure your firm most likely already has. If you use Workspace, you already have the foundation.

The suite adds Gemini, NotebookLM, Nano Banana Pro, Veo 3, Flow, Google Vids and Whisk on top of what you already pay for. Apply any of them with structure and the returns are immediate.

Each section below covers what the tool does and where it fits in a real advisory workflow.

1. Gemini: The core engine behind Google's ecosystem

Gemini is the model powering most of Google's AI strategy. It handles text, images, voice and code, and it reasons across all of them. Google embedded it directly in Workspace, so your team can access it without leaving Gmail, Docs, Sheets, Slides or Meet.

Where it fits: Gemini handles drafting work your team already does manually: Market commentary, client letters, meeting summaries and internal memos. It also summarizes long email threads and cuts the time your team spends on administrative preparation.

The bottom line: Gemini is not a standalone product. It is an engine that strengthens the workflows your team already runs in Workspace. If you run on Google, you have it today.

2. NotebookLM: A research assistant for content-heavy firms

NotebookLM lets you upload source documents and query them conversationally. Load it with regulatory updates, investment research, compliance memos or training materials and it processes everything, so your team can ask questions and get structured answers without reading through every page.

Where it fits: Your analysts can get a summary of a 40-page regulatory update without reading it in full. Your advisors can pull client-ready talking points from research reports they do not have time to process. Your compliance team can cross-reference documents without handling each one individually.

The bottom line: NotebookLM removes the single most consistent drag on advisory productivity: The time it takes to read and synthesize large amounts of written material. If your team is buried in documents, start here.

3. Nano Banana Pro: Google's image generation and editing system

Nano Banana Pro is Google's image generation and editing model, built on Gemini 3 Pro and released in November 2025. It creates branded visuals and infographics at up to 4K resolution, with precise control over lighting, color and layout. It also renders accurate text in multiple languages directly in the image.

Where it fits: Your marketing team can produce graphics for newsletters, webinars and adviser presentations without waiting on a designer. Your advisers can build visual aids that help explain financial concepts to clients without needing a creative team behind them. If you serve international clients, the multilingual text rendering adds practical range.

The bottom line: Nano Banana Pro cuts your design cycle and your cost per piece. You spend less time waiting on outside creative resources.

4. Veo 3: Cinematic video generation for professional storytelling

Veo 3 is Google's video generation model. Feed it a script, a prompt or reference images and it produces cinematic-quality video with realistic camera motion, lighting and scene composition. The output quality is approaching commercial production standards.

Where it fits: You can use Veo 3 for quarterly market updates, conference openers and adviser-produced client communications. Your investment team can convert a complex research thesis into a two-minute video a client will actually watch, without a production crew. Your advisers can record personalized welcome videos on their own.

The bottom line: Veo 3 is for firms that want to compete on content quality without the cost of an in-house studio. The production barrier drops. The brand quality does not have to.

5. Flow: The editing and production system built for scale

Flow is Google's video editing and production platform. It does not generate video. It takes what you already have, assembles it into branded scenes, and outputs a finished cut ready for distribution.

Where it fits: Your marketing team can cut a long webinar into usable short clips in an afternoon. Your branch offices can produce adviser content to a consistent standard without rebuilding the process each time. Your operations team can turn a new policy into a training video the same day it is written.

The bottom line: Flow enforces consistency at scale. The quality of the output does not depend on who built it.

6. Google Vids: Fast script-to-video creation

Google Vids converts a script into a short video using stock footage and basic narration. It is the lightest tool in the suite and the one with the lowest barrier to entry.

Where it fits: Use it to build onboarding content and adviser training modules. It is also the right tool for policy updates and social posts where the message needs to be short and the production needs to be fast.

The bottom line: Google Vids is where to start if your team has never produced video. The learning curve is flat.

7. Whisk: A creative ideation tool for campaigns and branding

Whisk helps your team explore visual directions and campaign concepts before committing to production. It generates mood boards, color palettes and layout concepts so your team can align on creative direction before anyone spends real budget.

Where it fits: Your marketing team can use it to pressure-test visual concepts for a campaign or rebrand before spending anything on execution. It is cheap to explore and expensive to redo.

The bottom line: Whisk is a planning tool. Settle your creative direction here before you commit production budget to Veo 3 or Flow.

8. Workspace AI: The quiet productivity driver

The AI features built directly into Workspace often deliver the fastest return because they require the least disruption.

Your team can summarize meetings and write first drafts with fewer manual steps. Sheets and Slides get the same treatment. No new software. No change management program.

The bottom line: Workspace AI is where most firms should start. The lift is immediate and the barrier to entry is near zero.

Strategic recommendations for firm leaders

Getting value from these tools requires more than access. Before you deploy broadly, do these five things.

1. Start with NotebookLM or Workspace AI. Neither requires new infrastructure or a rollout plan. Both connect to content your team already produces. You will see measurable time savings within the first month. Prove the value before you expand.

2. Lock down your data controls before anything goes live. Confirm that client and firm data will not feed model training. Review your data processing agreements with Google. This is a compliance prerequisite, not a configuration detail.

3. Put a review process in writing for client-facing content. A review by an adviser, compliance or marketing is needed before anything reaches a client. Document who reviews what, and when, before the first AI-assisted piece leaves your firm.

4. Build prompt templates and a short style guide before you deploy broadly. Consistent outputs require consistent inputs. One day of preparation prevents weeks of inconsistent output.

5. Measure outcomes from day one. Track turnaround time, content volume and team member satisfaction. The data you build now is what justifies the next phase of investment.

Conclusion

Google's AI ecosystem gives your firm a direct path to better client communication at lower operating cost. These tools do not replace your advisers or your compliance process. They give your team more capacity to do the work that builds client relationships.

Your competitors are not waiting. The firms building structured AI workflows today are gaining a cost and capacity advantage that compounds every quarter. The ones that hold off will keep subsidizing the gap with margin, and eventually with clients.

Related Content

• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• How to Adopt AI and Keep Employees Happy
• How to Prevent AI-Generated 'Workslop' From Destroying Your Workplace Relationships
• I Met With 100-Plus Advisers to Develop This Road Map for Adopting AI
• Why Financial Advisers Will Benefit as Google Shakes Up Financial Research

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The Great Wealth Transfer is estimated to comprise $124 trillion in assets by 2048, according to the CFA Institute.

Now that we are over halfway there, we can see how differently the new wave of ultra-high-net-worth (UHNW) Millennials approaches investing, saving and overall values around wealth compared to previous generations.

Baby Boomers, for example, have been known to value legacy, privacy and long-term stewardship. As a result, their wealth plans have been rooted in building wealth through hard work and typically lean towards structured estate planning and cautious investments.

In contrast, recent spending habits among UHNW Millennials indicate a shift toward values such as personalization, flexibility and personal expression. They prefer flexible options, such as access to subscription-based luxury items, bespoke travel experiences and even tailored investment strategies.

When it comes to financial planning, there's a growing preference for customization rather than a one-size-fits-all approach.

For this generation, wealth is increasingly seen as a matter of curation rather than mere accumulation. And this departure from the philosophy of previous generations raises a new question: How is legacy being recontextualized, and how can these two groups work together to bridge their differences?

Bridging values

Values are shaped by lived experiences, both social and personal, and it's only natural that they differ across generations. The world that built the wealth of many first-generation creators is no longer the same one their children or grandchildren inherit.

For wealth to endure, it must evolve, and that evolution depends on adaptability and cooperation.

Today's wealth holders came of age during periods of economic volatility when preservation and self-reliance were paramount. Even for those not directly affected by hardship, their values were rooted in preparation: Work hard, save diligently and build a cushion for uncertain times.

In contrast, Millennials have come of age in an era of exponential change. Shaped by social media and globalization, they prioritize authenticity, purpose and social impact. They want to make their mark on the world, not just maintain what's been built.

Bridging these differing value systems requires one critical skill from financial advisers: Relationship management. Advisers can encourage wealth creators to use storytelling — sharing how their wealth was built, the challenges they faced and the lessons learned — to help younger generations appreciate both the responsibility and the privilege of it.

Equally important, advisers should invest time in understanding what the rising generation values most and guide them on ways to integrate those priorities into their financial strategies. It may take years for ideas to become investments, but every conversation starts the process.

Ultimately, it's the adviser's role to facilitate these exchanges, helping both generations articulate what matters, find common ground, and ensure no one is "missing each other" along the way.

Managing each generation as a collective

The current playbook has been shaped around the preferences of a generation focused on preservation, privacy and long-term control. But for younger UHNW clients, wealth isn't just something to grow, it's something to shape.

They're looking for strategies that reflect who they are and what they care about, not just what they have inherited.

This shift in mindset can be challenging to navigate, but it's also an opportunity for advisers to connect with and guide a new generation. When families and advisers make space for evolving priorities, they're not just preserving wealth — they're creating a legacy that actually resonates.

What does this mean for family offices tasked with guiding evolving wealth conversations?

Family offices will need to work to bridge generational gaps by helping families align on values.

This means creating space for changing priorities and designing strategies that reflect what wealth means to each generation, not just what it has meant historically.

A few ways to support this shift:

• Invite younger clients into planning conversations. The earlier they can be involved, the more they understand the process and shape the legacy they are a part of.
• Start with values. Ask the younger generation: What does legacy look like to them and why?
• Offer flexible planning tools that allow for evolution over time. This way, everyone has the opportunity to express themselves and feel heard.
• Revisit strategies annually to ensure there is still alignment across all parties. Interests and priorities change, and an annual pulse check provides the opportunity to facilitate productive and meaningful conversations.

The role of customization in building generational continuity

When financial plans feel outdated, it's easy for people to check out. However, when the approach reflects who they are and how they live, it becomes something they want to preserve.

Customization can serve as a strategic bridge that keeps families engaged in their long-term plan. A prepared financial adviser will curate strategies and recommendations that meet the needs of both generations so that, when it comes time to pass on wealth, it feels like a continuation of shared intent — not something suddenly imposed.

This might be done by:

• Designing strategies that invest assets, transfer wealth, manage risk and maximize philanthropic impact
• Supporting UHNW families to deepen connectivity to institutional resources, financial analysts, industry leaders and like-minded peers

Together, these two factors can support a comprehensive and personalized plan that adapts as the family evolves.

But families are not one-dimensional, and neither are the challenges that come with preserving values and wealth across generations. Strategic planning alone cannot account for individual family members' lifestyle differences.

That can only be managed on a personal level, and Lifestyle Advisory by Morgan Stanley can be complementary in supporting each family member's individuality. (Note: I am a managing director at Morgan Stanley and serve as head of Family Office Resources Platform & Partner Management.)

Through a curated network of specialists, families can access guidance across leisure and experiences, health and wellness, home and security, and personal pursuits and enrichment, offering them a chance to bring the practical realities of daily life into the broader legacy conversation as they experience them.

Similarly, Morgan Stanley Trust Services provides families with highly customized, multigenerational wealth transfer strategies through a carefully selected platform of corporate trustees, coupled with investment management expertise and personalized service.

Corporate trustees are objective and professional in executing the wishes of the grantor and take family dynamics out of the equation when one family member is appointed to serve as trustee.

These tailored lifestyle solutions and trust services exemplify how Morgan Stanley integrates personal interests with sophisticated wealth planning to support families in every aspect of their legacy.

When individual interests and lifestyles are acknowledged, customization becomes less about complexity and more about inclusion. Customization might mean letting the next generation take ownership of one element of the wealth plan — such as philanthropy, alternatives or sustainability — or simply building in optionality across trusts, investments and giving strategies. The goal is to use customization as a tool for inclusion, not division.

Getting everyone on the same page requires more than good intentions. Both generations need to be part of the conversation early and often. That means creating room for honest discussions, not just making decisions after the fact.

Advisers can help families identify shared goals, capture points of overlap and return to them when differences inevitably arise to turn potential tension into continuity.

Related Content

• You've Built Your Wealth, Now Make Sure Your Family Keeps It
• Debunking the Myth of the Silver Spoon
• Why the Ultra-Rich Still Lose Sleep Over Money
• In Family Philanthropy, Embracing Differences Can Pay Off
• Investing in Fine Wine: Six Trends Affecting the Market

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Annuity buyers saw a surge in payouts in 2022 and 2023 because of persistent Federal Reserve interest rate hikes. Now, after two years of cuts, economists believe rates could be back on the rise later this year owing to inflationary pressures stemming from the Iran war.

These shifting dynamics highlight why it's essential to reevaluate older annuities — helping ensure your clients continue to maximize their retirement income potential, no matter how the market evolves.

Annuities remain a foundational tool in retirement planning, offering stability and guaranteed income. However, they are not set-it-and-forget-it products. They require regular reviews to stay effective as economic and personal landscapes shift.

Proactive annuity reviews help clients optimize their financial outcomes and position you as a trusted, client-focused professional who actively protects their wealth.

The case for annuity reevaluations

Changes in your clients' lives and the broader economy can directly impact the performance of their annuities. Shifts in financial markets alter the returns and advantages anticipated at the time of purchase.

As a financial professional, your responsibility is to help ensure clients' annuities continue to align with their evolving goals. To maintain the effectiveness of these products, you should conduct reviews every one to two years. This routine checkup helps guarantee that a client's coverage still fits their current circumstances.

Four triggers for annuity reevaluations

Several specific situations signal the need to look closely at an existing contract. Keep an eye out for these four primary triggers.

• Changing interest rates: Rising rates create massive opportunities for clients with older annuities. If a client locked in an immediate annuity when rates were low, they might be stuck with lower payouts for life. Upgrading can help secure a significantly higher income (and generate revenue for you).
• High inflation rates: Inflation erodes the buying power of fixed payouts. If a client secured a deferred income annuity to cover essential expenses, surging consumer prices may have diminished its value. Adjusting the annuity can help payments keep pace with rising costs.
• Unnecessary riders: Riders provide extra protection but also increase costs. A client may have added a death benefit or long-term care rider years ago. As life changes, these once-valuable add-ons may no longer make sense. Removing them reduces fees and improves efficiency.
• Life event changes: Major life shifts always warrant a review. Changes in marital status, employment, health or retirement income needs can alter financial objectives. Adjusting the annuity ensures it meets the client's new reality

Comprehensive annuity reviews

A proper annuity review goes much deeper than just analyzing performance and lifetime income payments. It requires a holistic look at the client's current life situation.

When conducting a comprehensive review, pay special attention to these critical areas:

• Beneficiary designations: Do you need to update beneficiaries to match the client's current intentions?
• Supplementary benefits: Are there unnecessary riders inflating fees? Are there new rider options that would provide better value?
• Ownership structure: Is the current ownership structure still tax-efficient and logical?
• Overall performance: How does the existing contract compare to new products on the market?

By asking these questions, you act as a proactive partner, guiding clients through complex financial decisions and helping ensure they remain in advantageous positions.

Real-world outcomes

To understand the impact of this process, consider how other financial professionals use annuity reevaluations to help increase growth.

Unlocking hidden value

One advisory firm we work with realized they had neglected back-book opportunities for far too long. To fix this, the owner hired a dedicated staff member to examine all business written over the past 15 years. This systematic approach quickly identified dozens of clients holding outdated contracts.

By upgrading these clients, the firm moved a significant amount of funds into better positions within just a few weeks. One client saw an increase in value after paying the surrender fee, translating to a monthly income boost. The firm increased its revenue significantly, while clients received life-changing income upgrades.

Balancing growth and service

Another financial professional capitalized on impending interest rate cuts by actively reviewing older contracts. Within a single month, he rewrote a large amount in annuity business, moving dozens of clients into positions that aligned with their goals.

He managed this while maintaining his active marketing routine, including educational workshops and seminars. By combining aggressive back-book reviews with front-end marketing, his firm surpassed its annual production goal months ahead of schedule.

Actionable takeaways

You can apply these exact strategies in your practice right now. Use these steps to help enhance client outcomes and grow your business.

1. Schedule regular reviews: Establish a strict routine for reviewing clients' annuities every 12 to 24 months. Make it a non-negotiable part of your annual client check-in process.

2. Invest in resources: Consider assigning a specific team member to pull customer relationship management data and review older contracts. Systematizing the process helps ensure no client falls through the cracks.

3. Educate and engage clients: Host workshops or send out short videos explaining how economic changes impact annuities. Educated clients are more likely to trust your recommendations when it is time to upgrade.

4. Prioritize client-centric solutions: Always present options that align with your clients' best interests. Even if it requires uncomfortable conversations about surrender fees, focus on the long-term mathematical benefit.

5. Stay proactive: Monitor economic trends constantly. When the Federal Reserve makes a move, be the first to call your clients and explain what it means for their retirement income.

The win-win of annuity reevaluations

Annuities are a highly strategic way to help secure steady income during retirement. However, the economic environment and your clients' lives never stop changing. By reviewing their annuity contracts now, you take a proactive step to confirm their retirement planning remains completely on track.

When you discover opportunities to adjust or exchange an annuity for a better option, everyone wins. Your clients can enjoy greater financial confidence and higher income, and you build a thriving, deeply trusted advisory practice.

Start looking at your back-book today. The hidden value waiting there might surprise you.

Advisors Excel's mission is simple yet profound: To help good advisers become great business owners while enabling their clients to enjoy the retirement of their dreams.

This content is for informational purposes only and is not intended as financial advice or advice designed to meet the needs of any particular situation. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not affiliated with the U.S. government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 5358488 – 4/26

Related Content

• Three Options for Retirees With an Old (Forgotten) Annuity
• Three Reasons It May Be Time for an Annuity 'Refresh'
• Income and Life Expectancy Not Adding Up? An Annuity Could Solve the Equation
• Navigating Annuity Taxation: A Guide for Financial Advisers
• How Financial Advisers Can Help Clients Navigate the SSFA

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many advisers rely on ETFs and mutual funds to gain equity exposure, typically by allocating across broad categories, such as domestic and international, large‑cap and small‑cap stocks. While this approach is convenient, it introduces meaningful limitations.

Advances in direct indexing technology now address many of these issues, providing a compelling alternative to portfolios built with wrapped products.

This article examines the structural challenges of pooled vehicles and highlights how rules‑based direct indexing can deliver more precise, transparent and targeted equity exposure.

Pooled vehicle limitations

There are five primary limitations associated with using pooled vehicles to construct public equity portfolios:

• Lack of clarity on holdings: Portfolios built with ETFs and mutual funds make it difficult to see what is truly owned, as underlying securities are hard to aggregate and analyze, limiting an ' adviser's ability to make fully informed portfolio decisions.
• Hidden manager overlap and concentration risk: Multi‑manager portfolios can contain significant overlap that often goes undetected owing to the difficulty of aggregating holdings. For example, as technology exposure in the S&P 500 has grown, its overlap with the technology-focused Nasdaq 100 has increased from approximately 20% 10 years ago to about 50% today.
• Limited tax‑loss harvesting: ETFs and mutual funds allow losses to be harvested only at the fund level, not at the individual security level. In addition, mutual fund capital‑gain distributions can create unwanted tax drag, reducing overall tax efficiency.
• Portfolio drift over time: Manager decisions and market movements can shift underlying holdings, leading to unintended tilts and exposures. This makes systematic look‑through rebalancing at the total portfolio level difficult.
• Layered and redundant fees: While simple, passive ETFs can be a cost‑effective way to gain broad market exposure, portfolios built with more active strategies can stack fees, reduce transparency and significantly increase overall costs.

Benefits of the direct indexing approach

Direct indexing allows advisers to define and target a specific market portfolio through a transparent, rules‑based framework.

The approach can be implemented in a more passive manner to closely track a chosen benchmark, or it can incorporate factors and other portfolio construction tools to pursue differentiated or potentially enhanced outcomes.

Key benefits include:

• Highly customizable portfolios: Direct indexing enables advisers to tailor holdings, constraints, exclusions and rebalancing rules to client needs, often replacing multiple funds with a single, precisely defined portfolio built to the ' adviser's specifications.
• Paving the way for tax alpha: Because direct indices are held in separate accounts, advisers can harvest losses at the security level rather than selling entire funds. When combined with systematic rebalancing, this can reduce unnecessary turnover and improve tax efficiency, especially in volatile markets where dispersion creates frequent harvesting opportunities. These tax benefits may help offset some of the hidden costs embedded in higher‑turnover ETFs.
• Knowing what you own: Direct ownership of securities makes it easier to see exactly what is held and to monitor overlap, particularly when equities are held in a single account. Even when multiple direct indices are used, overlap is typically limited because each index targets a distinct market segment. Changes in holdings are driven by documented rules rather than manager discretion, improving transparency, accountability and fiduciary oversight.
• Staying on track: Direct indices are built on clear rules and can be regularly updated and rebalanced to remain aligned with a client's objectives. Rebalancing can occur on a schedule, when allocations drift outside target ranges, or in a tax‑aware manner that prioritizes losses and limits short‑term gains. This structure reduces unintended drift from market movements and avoids the uncoordinated exposure changes common in pooled vehicles.

Transitioning to direct indexing

Advances in technology have simplified the implementation of direct indexing and made it easier to scale. To fully leverage these benefits, advisers must adapt in several key areas:

• More focus on portfolio construction and less on manager selection: Traditionally, advisers outsource some control over the equity allocation to discretionary active managers and/or index providers that set security‑selection rules. With direct indexing, advisers take a more active role in defining the target portfolio, refining construction rules to achieve desired exposures by sector, geography, number of holdings and other key metrics.
• Balancing tracking error and customization: Direct indices typically begin with a benchmark or defined universe of stocks. Tracking error is influenced by both the number of securities held and the level of customization. While backtests can help estimate tracking error relative to a target, they should be interpreted cautiously owing to potential biases. Over time, tax‑loss harvesting and other portfolio actions may increase tracking error, influencing rebalancing decisions.
• Managing turnover and trading costs: Turnover and trading costs are affected not only by tax‑loss harvesting and rebalancing frequency, but also by portfolio construction rules. Overweights to small‑cap or less liquid securities, smaller trade sizes and frequent execution can increase costs. Because backtests typically exclude trading costs, advisers should monitor live portfolio performance relative to the model benchmark to identify potential cost leakage.
• Evolving client communication: Client meetings often focus on manager performance. With direct indexing, discussions shift toward portfolio exposures and performance drivers, including the impact of individual securities. Because direct indices are held in separate accounts, they integrate easily with platform‑based AI tools that can generate customized client letters, detailed analysis and scalable reporting. This enables more personalized and meaningful client conversations.

Conclusion

The pooled vehicle approach remains viable but carries structural limitations, including limited look‑through control, wrapper‑level tax management, overlap risk, exposure drift driven by manager decisions and valuation regimes, and layered fees. Advances in technology have made rules‑based direct indexing easier to implement and well suited to address these challenges.

Direct indexing provides greater control over holdings, enables more precise tax‑loss harvesting, reduces uncertainty around overlap, and supports alignment with portfolio targets through systematic rebalancing. Because direct indices are held in separate accounts, they are easier to integrate with AI‑driven tools that enhance portfolio analysis and client communication.

Importantly, direct indexing is flexible and scalable. A direct index can serve as a model portfolio that can be applied across clients with similar objectives, while remaining easily customizable to reflect individual preferences.

For advisers accustomed to allocating across pooled vehicles, multiple target direct indices can replicate exposure across geographies, market capitalizations and other desired dimensions. Taken together, rules‑based direct indexing offers advisers a modern, transparent and scalable framework for improved portfolio construction and client service.

Related Content

• An Investment Strategist Demystifies Direct Indexing: Is It for You?
• Personalized Investing Portfolios: Unlock the Greatest Potential
• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• A Financial Planner's Guide to 4 Tools That Help Advisers Take Estate Planning to the Next Level
• Are You Ready to Go Upmarket? What Advisers Need to Know

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Bloomberg and FactSet have dominated professional financial research for decades by controlling access to curated, institutional-grade data. That competitive moat is now under direct assault.

Google's AI-powered Finance platform represents more than a free alternative to expensive terminals — it signals a fundamental shift in how big tech companies view the financial data market.

When the world's dominant search company applies its AI capabilities to financial research, it forces a strategic question that incumbent providers cannot ignore: Is proprietary data enough to justify premium pricing when sophisticated AI tools become freely available?

The competitive response reveals two divergent strategies. Bloomberg and FactSet are doubling down on domain expertise and workflow integration, betting that decades of curated financial information create defensible advantages.

Google is betting on interface innovation and accessibility, wagering that natural language AI will attract users willing to accept data limitations for zero cost.

The battle between these approaches will reshape how wealth management firms allocate research budgets and determine which capabilities justify ongoing investment.

Bloomberg's AI response

Bloomberg launched BloombergGPT in 2023, a 50-billion parameter large language model purpose-built for finance. According to Bloomberg's announcement, this model was trained on extensive financial data collected over four decades, combining proprietary content with general-purpose datasets.

The AI rollout accelerated through 2025. Bloomberg launched AI-Powered News Summaries in January 2025, providing bullet points at the top of news content.

According to Bloomberg's press release, the company expanded this in November 2025 to include AI Summary for company news, which aggregates multiple sources and identifies key themes.

The Document Search and Analysis tool represents Bloomberg's most sophisticated AI offering. According to IT Brew, the tool synthesizes multiple documents, such as earnings transcripts or research reports, allowing users to cross-examine information using tables and build comparative analysis across companies.

Bloomberg's strategy emphasizes transparency and domain expertise. Bloomberg Intelligence analysts trained the AI models on financial language nuances. The platform provides links to original sources when generating responses, maintaining audit trails for compliance.

These capabilities remain exclusively for Terminal subscribers at pricing levels above $25,000 annually. Bloomberg bets that institutional investors will pay premium prices for AI built on proprietary, curated financial data.

FactSet's Mercury platform

FactSet launched Mercury AI in December 2023, focusing on workflow automation. According to Databricks case study documentation, Mercury combines natural language querying with automated visualization and pitch-creation tools.

Pitch Creator, launched in January 2025, automates model analysis and presentation building, reducing hours to minutes. Search Intelligence enables semantic search across earnings transcripts and SEC filings. The Template Assistant provides more than 200 pre-built Excel templates for investment research using natural language.

Mercury is available to all FactSet subscribers at no additional cost, though base subscription fees remain comparable to Bloomberg Terminal.

Internal development at major institutions

Major financial institutions have built internal AI capabilities on licensed language models. Morgan Stanley developed an assistant using OpenAI technology. JPMorgan Chase created LLM Suite for condensing transcripts and automating market updates. These internal tools work for large institutions but remain impractical for smaller wealth management firms.

The strategic divide

The competitive landscape splits along clear strategic lines. Bloomberg and FactSet bet that proprietary data and domain expertise justify premium pricing. Their AI capabilities layer onto decades of curated financial information that free platforms cannot replicate.

Google bets that accessibility and interface innovation will attract users who can tolerate data delays for zero cost. The 15 to 20-minute delay in Google Finance protects incumbent value propositions for time-sensitive trading but opens preliminary research to free alternatives.

Real-time data access remains a key differentiator. Professional platforms provide institutional-quality pricing and market depth that free platforms cannot offer. According to academic research, functional depth of AI integration matters more than merely having "AI features."

Implications for wealth management firms

Smaller firms and independent advisers now have access to sophisticated tools without enterprise budgets. Large firms must evaluate which research functions require professional-grade terminals and which can migrate to free platforms.

The competitive pressure will accelerate innovation across all platforms. Google's entry forces incumbents to demonstrate value beyond data provision. Natural language interfaces will become standard, shifting differentiation to data quality and workflow optimization.

Firms should evaluate which functions require real-time data and which can use delayed public information. Junior analysts might conduct preliminary work using Google Finance while senior staff use Bloomberg for detailed investigation.

The future landscape

Natural language will become the standard interface for financial research regardless of platform. Google may pursue exchange partnerships for real-time data access, potentially eliminating the delay advantage that protects incumbent pricing.

Bloomberg and FactSet will likely continue expanding natural language capabilities while emphasizing proprietary data advantages.

The eventual outcome will segment the market. Free platforms serve preliminary research and hypothesis generation. Professional terminals serve detailed analysis, real-time monitoring and integrated workflows connecting research to execution.

The competitive dynamics favor firms that adapt quickly. Early adopters of free research tools build institutional knowledge while maintaining professional subscriptions where they generate most value. This hybrid approach combines accessibility with authority, leveraging both free innovation and established infrastructure.

The firms that master this balance will operate with better information at lower cost.

John O'Connell is founder and CEO of The Oasis Group, an award-winning consultancy and research firm serving wealth management firms nationwide. O'Connell has more than 30 years of leadership experience in financial technology and wealth management, including North American leadership at Oracle, fintech CEO and president roles, and participation in IPO and M&A transactions. He is the creator of the AI WealthTech Map (100+ firms), the developer of the Oasis AI Readiness Index, and is recognized as a leading independent voice on AI adoption in wealth management. O'Connell is regularly featured in Barron's, Wealth Management, Financial Planning, ThinkAdvisor, InvestmentNews, Family Wealth Report, and other leading publications, and has been recognized for his thought leadership in many industry-leading awards programs.

Related Content

• What Is AI Investing?
• AI-Powered Investing in 2026: How Algorithms Will Shape Your Portfolio
• Machine Learning in Finance: Real-World Applications and Challenges
• Google's AI Overview Is Wrong About Life Insurance 57% of the Time, Says Study
• How Google Reviews Can Help (or Hurt) Financial Advisers

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When people ask when to claim Social Security, the conversation usually starts with math. Claiming at 62 locks in a permanently smaller check, while waiting to 70 increases monthly benefits and builds a larger inflation-adjusted income stream for life.

Most advisers and do-it-yourself retirees translate that trade-off into one practical question: How long do I need to live for delaying to pay off?

Depending on the assumptions used, break-even points often land around age 80 when you compare a claim at 70 versus full retirement age, and in the early 80s when you compare 70 versus 62.

Broad longevity data makes those ages plausible. The Social Security Administration's 2022 period life table shows a 70-year-old man has a remaining life expectancy of about 14.1 years and a 70-year-old woman about 16.3 years, putting the averages in the mid-80s.

Even with that context, many people still claim early, and the explanation for doing so usually sits outside the spreadsheet.

Recent research helps shed light on the issue by framing claiming as a decision shaped by client preferences around spending and security — not just a calculation designed to maximize lifetime dollars.

A strategy can look "suboptimal" on paper and still fit the way a household experiences retirement, particularly when comfort and follow-through matter as much as the break-even point.

A framework built around real preferences

In a recent paper, Revisiting the Social Security Claiming Puzzle: Behavioral Preferences as Rational Explanations for Early Claiming, Derek Tharp, PhD, from the University of Southern Maine, analyzes Social Security claiming using a utility-based framework that builds in three behavioral preferences that show up in retirement decisions.

The framework incorporates front-loaded consumption, meaning some retirees place more value on spending in the early, active years of retirement.

It also incorporates source-dependent utility, where people feel more comfortable spending from a steady income stream than selling investments.

A third factor is claim-retire linkage, where retirees prefer to claim when they retire instead of managing a separate bridge period.

When those preferences are included, the model can point to earlier claiming ages for some households, including those with substantial assets, because the "optimal" strategy shifts once the inputs reflect how people actually prefer to spend and draw from wealth.

This framing is useful for advisers because Social Security sits in a unique category. It is one of the few retirement decisions that can create a guaranteed, inflation-adjusted income stream for life, and the client's comfort with the plan often determines whether they will carry it out through the bridge years and into later retirement.

Start with the math, then test the assumptions that drive behavior

A break-even analysis remains a good entry point for claiming decisions because it clarifies the trade-off in plain terms.

However, it usually needs a second layer that tests whether the assumptions behind the "optimal" strategy match the client's real preferences.

Discounting is one of those assumptions. A dollar at age 62 can have more value to a household than a dollar at 70 because it supports flexibility, reduces near-term stress, or preserves a sense of control. Therefore, two households can look at the same breakeven chart and reach different conclusions for valid reasons.

The decision set also deserves more realism than the typical "62 versus 70" framing allows. Many people claim at full retirement age. But some claim early because their work ends earlier than planned. Others delay because they continue working, do not need the income yet, or want stronger survivor protection.

The conversation tends to get clearer when the plan is built around the client's most likely path, rather than forcing the client into a simplified comparison that never really fits.

Three questions that help surface the right claiming age

A short set of preference checks can reveal whether delaying benefits is likely to feel sustainable or whether it is likely to create friction that undermines the plan.

1. Do you expect spending to be higher early in retirement?
Spending is rarely flat across retirement. Many households spend more in the first phase when health and energy support travel and activity, then slow down and may spend more again later if health care needs increase.

When a client strongly values the early years, earlier claiming can support that spending pattern by reducing the need to treat the first decade of retirement as a holding period.

One prompt that tends to work well in meetings is: "Do you want your plan to support more experiences in the first phase of retirement, or do you want to emphasize higher guaranteed income later?"

The answer changes the structure of the recommendation and sets expectations around what the client is trading.

2. How do you feel about spending principal?
Many retirees treat "income" and "principal" differently even when the dollars are interchangeable. They might spend a Social Security check, dividends or interest with little hesitation, while feeling real discomfort about selling shares or watching an account balance decline. That discomfort can shape behavior in meaningful ways.

A delay-to-70 plan often assumes steady portfolio draws during the bridge years, but a client who dislikes selling may respond by underspending during that period even if they can afford to spend.

In that situation, the plan may deliver a larger check later at the cost of a smaller life earlier, and that may not be the trade-off the client intended to make.

Two precise questions that can surface this quickly are: "When you think about selling investments to fund retirement, does it feel routine or does it feel like giving something up?" and "Would a larger Social Security check later increase your willingness to spend today, or would you still prefer to keep spending tight?"

3. Do you mentally connect retirement and claiming as one milestone?
Many people view claiming as the start of retirement even if they retire earlier. They want a single starting line and a simple rhythm to the plan. Tharp treats this claim-retire linkage as a real preference, not a planning error.

This preference affects follow-through. A recommendation built around retiring at 62 and delaying benefits until 70 can create ongoing discomfort if the client experiences the wait as unfinished retirement, which can turn the bridge years into a long exercise in restraint.

A straightforward test question often clarifies the issue: "If you retire at 62, would waiting several years to claim feel fine, or would it feel like retirement has not fully started until benefits begin?"

A strong Social Security recommendation usually combines the break-even math with a clear read on the client's preferences around early-retirement spending, portfolio drawdowns and simplicity.

When the strategy fits how the household actually behaves, clients are more likely to stick with it.

Ideally, Social Security can then support a steadier spending rhythm and a retirement plan that feels workable over decades.

The information contained herein is for educational purposes only and should not be construed as financial, legal or tax advice. Circumstances may change over time so it may be appropriate to evaluate strategy with the assistance of a financial professional. Federal and state laws and regulations are complex and subject to change. Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of the information provided. Janus Henderson does not have information related to and does not review or verify particular financial or tax situations, and is not liable for use of, or any position taken in reliance on, such information.

Related Content

• I'm a Financial Adviser: This Is the $300,000 Social Security Decision Many People Get Wrong
• Retiring in the Next 12 Months? Answer These 3 Questions Before Your Paycheck Stops
• How to Plan for Retirement's Go-Go, Slow-Go and No-Go Years
• Three Financial Planning Strategies for When Markets Fall
• What's Up With the 10-Year Treasury Bond: Four Financial Experts Weigh In

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Humans first began farming some 10,000 to 15,000 years ago, making arable land one of our very oldest "managed assets."

Today, farmland's global role is more indispensable than ever, to meet the life needs of a swelling global population and, increasingly, soften the harmful impacts of a changing climate.

Farmland also offers a remarkable portfolio opportunity that, while traditionally accessible to institutions, is becoming more available to the individual wealth marketplace, as well.

With operating models designed to hedge against crop production risk and commodity price volatility inherent in the asset class, as well as deliver vital portfolio goals, farmland's attributes, and what's required to optimize a farmland allocation, merit close attention by advisers and investors.

Today, sweeping macro trends are having a profound impact on well-managed farmland's inherent value.

The United Nations projects that the total global population, currently around 8.2 billion, could grow to around 8.5 billion in 2030, 9.7 billion in 2050, and 10.4 billion in 2100.

Food demand is sharply on the rise

As growth continues, overall demand for food will increase by at least 60% by 2030, according to the United Nations Food and Agriculture Organization (FAO). Demand for more resource‐intensive foods such as meat and dairy products is projected to rise even faster, by nearly 70%.

Demand for protein, plant-based as well as animal-based, will likely grow, as well, with animal sources of protein heavily dependent on healthy production of feed crops.

At the same time that food demand is rising, available land is declining significantly, with the Conservation Fund estimating that a square mile of farmland disappears every day to urban development, renewable energy and other land uses.

A proven investment case

Growing demand with a changing supply picture is just one element of a compelling investment story. Other fundamental factors also will have a powerful influence going forward.

But the case for farmland investment has been proven. Farmland has been called "gold with a coupon," a reference to its attractive value and return fundamentals.

Long-term performance data show that farmland has delivered:

• A natural hedge against inflation
• Positive return with comparably less volatility
• Resilience throughout the market cycle

The coupon comes from the annual yield rate that's derived from rental agreements with the farmers cultivating the land.

As an illustration, from 1970 to 2024, farmland tended to move in the opposite direction from stocks and bonds — when the S&P 500, NASDAQ and 10-year Treasuries went up or down, farmland largely went its own way. This is actually a benefit for investors, since it can help cushion a portfolio during market downturns.

Farmland did, however, tend to move in the same direction as gold, which makes sense as both are tangible, real-world assets.

Most notably, farmland had a strong relationship with inflation — as the cost of living rose, farmland values and returns tended to rise with it, reinforcing its reputation as a reliable inflation hedge.

From 1992 to 2024, farmland recorded an annualized return of about 10% and annualized volatility of about 5%, compared with U.S. fixed income returns at not quite 5% with about the same volatility. Farmland returns were positive even during recessionary periods in 2001, 2008 to 2009 and 2020.

Farmland is, arguably, the optimal diversification investment. Current unknowns could diminish the value of many other asset sectors, but demand for food will remain a certainty.

Technology, decarbonization will boost value

The stage is set for further advances in value. Technology is having a massive impact in farm country, for example, with the use of robotics, sophisticated data gathering and artificial intelligence approaches that can address such challenges as labor shortages and rising operational complexity, enhancing decision making in the field and, as a result, stronger margins.

The ongoing decarbonization of the economy will also create more opportunities for value gains. Land-based ecosystems absorbed around 30% of the carbon emissions generated through human activity in the last decade, says the United Nations.

Farmland management approaches that absorb carbon generate marketable "carbon credits" that can enhance return and diversify revenue.

What do advisers need to keep in mind as they consider prospective managers and assets?

Think local. Like most real estate investments, farmland is inherently a local market-driven investment. Such factors as land quality, water availability, tenant pool, weather and infrastructure can all materially affect the investment experience.

It's important to work with a manager well established in all regions that attractive opportunities can be found. Experience and platform size are key.

Focus on quality. High-quality farmland, land that will produce industry-leading yields in crops essential to the global food chain, will perform better across multiple cycles than marginal land. Look for managers who have a long history of sourcing such land.

Consider new investing structures. Private market farmland opportunities have historically been reserved for institutions at much higher investment levels with longer lock-up requirements. But new structures are emerging that provide "semi-liquid" features suited to the wealth marketplace, such as lower minimums and no lock-ups.

At the same time, advisers and clients should recognize that farmland markets move slower than more developed markets — and require a longer-term investment horizon.

Over time, farmland can be a portfolio standout. But as with any high potential asset, a track record for generating value and innovative investment approaches are must-haves.

Seek out a manager who has multiple decades' experience across different market cycles in this scarce asset while also having proven best-in-class traditional wealth client servicing, as well.

Related Content

• Farmers Brace for Another Rough Year
• What to Consider Before You Invest in Alternatives
• 10 Cities Where Grocery Prices Are Highest in 2026
• Three Ways to Spend Less on Groceries This Year
• What Federal Interest Rates Mean for Your Grocery Bill

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Something interesting has happened in the advisory world over the past few years. Independent advisers have built strong enough brands that high-net-worth families are increasingly willing to work with them.

And many advisers, looking at the work they do for a $500,000 family, are asking themselves, "If I could do the same amount of work for a $2 million family, wouldn't that be more profitable?"

The logic is understandable. The reality is more complicated.

Moving upmarket feels exciting and strategically smart, but many advisers who pursue it without preparation may end up hurting their growth rather than helping it.

By wandering into a space they're not equipped to serve yet, they could leave behind the mass-affluent clients they were well positioned to win.

If you're thinking about making high-net-worth families a legitimate part of your growth strategy, here's what you need to consider before taking the leap.

Needs vs wants: A fundamental shift

An adviser who works with us at AE Wealth Management said it well: "When you move upmarket, you're shifting from a needs-based relationship to a wants-based one. That distinction matters more than many advisers realize."

With a mass-affluent client — someone worth $500,000 to $2 million — the value proposition is relatively clear. There are typically gaps in their plan that, left unaddressed, could materially impact their retirement security.

The call to action practically writes itself: "Your plan has these gaps, and addressing them matters." There's urgency. There's tangible risk. The client feels it.

A $5 million family doesn't feel that same urgency. If their budgeting is reasonable, markets will likely cover them. The fear of running out of money in retirement doesn't resonate the same way. What this client is really asking is, "How do I maximize what I've built?"

That's a much harder question to answer well — one that requires an entirely different approach to planning, proposals and communication.

Adopting a new skill set

The shift from intellectual intelligence to emotional intelligence becomes critical here. Technical competence matters, to be sure, but high-net-worth families also expect their adviser to understand them deeply, from their psychological profiles and family dynamics to their relationships with money.

This task may be more difficult because wealthier clients are often worse at actualizing what they want from their money. Helping them figure out their goals and how to get there is the real work.

Approach high-net-worth advising as a new business line

If you're serious about serving high-net-worth clients, don't think of it as a gradual evolution of what you already do. Think of it as adding a new line of business to your practice — because that's precisely what it is.

When advisers branch out to add estate planning or tax planning to their firms, they don't just apply their existing tools to a new problem. (At least, I hope they don't.) Instead, they build the right infrastructure for the work.

The same logic applies here. Your mass-affluent business model and the people, tools and processes that support it can stay in place. What you need to build is a separate framework for high-net-worth families.

That framework requires you to make deliberate decisions across a few dimensions:

Build a value proposition that's specific to this audience. What you offer a high-net-worth client needs to be distinct from what you offer a mass-affluent client.

The messaging, planning approach and solutions must reflect that difference.

Define your target market precisely. "High net worth" is too broad to be useful. A $5 million family looks very different from a $15 million family, and a $25 million family is a whole other thing.

Decide which segment you're targeting and put the right tools and team in place to serve them effectively.

Consider specialization. There's a meaningful difference between targeting any $2 million to $10 million family and targeting, say, engineers or entrepreneurs who fall into that income range.

If you can become fluent in a specific niche, understanding their stock option plans, psychological profiles and priorities, you bring a level of credibility that's hard to replicate.

Your client lifecycle has to change, too

Attracting a high-net-worth client is only the beginning. How you propose solutions to them, how you review their plan and how you retain them over time all look different at this level.

Proposals need to cover different ground. High-net-worth clients have access to and expect a broader range of solutions. Tax strategy plays a more prominent role.

The product mix may include private markets or more sophisticated income solutions. The proposal itself needs to reflect that expanded scope.

Reviews also need to match the promise. If your initial proposal is more sophisticated, your ongoing review process should reflect that. Clients who signed on for a comprehensive, high-touch approach need to see it delivered consistently.

Retention at this level is also relationship-driven, in a particular way. High-net-worth families place a high value on connections with people who share their life experience.

The adviser who figures out how to facilitate those connections and bring together like-minded clients creates a kind of value that goes well beyond portfolio management. You become a connector for a community, not just a collector of assets.

A note on 'new' high-net-worth clients

There's one more thing worth noting: Working with a $2 million family today is not the same as it was even five years ago.

Markets have risen dramatically, and a meaningful number of people who now have $2 million may have never expected to get close to that number. They may not have the same financial acumen or emotional relationship with wealth that a client who inherited generational money or someone who built wealth over decades may have.

Understanding where your clients fall on that spectrum matters when you're designing how to serve them.

Preparing to move upmarket

Going upmarket is a legitimate growth strategy, but it's important to be ready for the move. Advisers who win high-net-worth clients through pure inertia (a referral here, a community event there) may find themselves in client relationships they're not fully prepared to serve.

If you're willing to make the necessary changes to your value proposition, infrastructure, team and overall approach to client relationships, the opportunity is real.

If you're not, you may be better off focusing on three to five more mass-affluent families than chasing a family you're not set up to serve well.

The question to ask yourself isn't whether high-net-worth clients are worth pursuing; it's whether you're ready to build the practice that can serve them the way they expect to be served.

Related Content

• How Advisers Can Establish Relationships With HNW Prospects
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• How Entrepreneurs and Wealth Managers Can Work Well Together
• Global Uncertainty Has Investors Running Scared: This Is How Advisers Can Reassure Them
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many experienced advisers eventually find that opportunities to work with ultra-high-net-worth families begin to surface more often.

Sometimes the path is gradual, as long‑standing clients accumulate wealth over decades. Other times it arrives abruptly through a referral whose balance sheet, family dynamics or business interests are already complex.

In both cases, the opportunity is often accompanied by hesitation.

The hesitation is not usually about competence. It is about structure. Advisers can worry that serving ultra‑affluent clients requires becoming something fundamentally different: A firm with far more services, deeper specialization and family‑office‑level infrastructure.

The perceived tradeoff is stark: Either remain within a familiar advisory model or rebuild the firm entirely to move upmarket.

In practice, this is often a false choice. What distinguishes effective ultra‑affluent advice is not the breadth of in‑house services, but the clarity and rigor of the strategic framework guiding them.

Complexity does not require complication

Ultra‑affluent families often do have complex financial lives. They may hold operating businesses, private investments, multiple properties and trusts, and they may have cross‑generational obligations and unique family dynamics. Risk enters their system through more channels, and the consequences of mistakes can be greater.

Advisory firms often struggle at higher wealth levels because advice delivery becomes additive rather than integrative. Planning, investments, estate planning, tax strategy, insurance and other services are often handled in isolation and not clearly connected. The firm appears more sophisticated, yet the advice itself can feel less coherent.

As wealth increases, complexity can reduce clarity, constrain effective decision‑making and lead to unintended outcomes.

Affluent households benefit from frameworks that organize tradeoffs, clarify priorities and provide context for each decision.

Standardize best practices and still deliver bespoke advice

Every client can benefit from customization. However, the way advisers think about wealth, risk and tradeoffs can remain consistent across households.

Advice and the client experience can be elevated when the language used to explain decisions is stable and the process by which choices are evaluated is repeatable and deliberate.

Judgment, however, should reflect each client's unique situation. Solutions should reflect each family's distinct priorities and preferences. Clients' balance sheets, constraints, family dynamics and objectives all benefit from tailored solutions.

Personalization is applied to specific decisions made within a consistent, standardized advice framework. This distinction allows firms to deliver deeply personalized advice without creating operational chaos.

Total wealth as the organizing structure

A total wealth framework can provide a stabilizing structure that allows advisers to move upmarket effectively.

Total wealth extends far beyond investable assets. It includes homes and mortgages, operating businesses, private investments, human capital, pensions, Social Security, insurance, expected estate transfers and future cash flows. Each element carries different risk characteristics, liquidity constraints and timing considerations.

Viewed in this broader context, the investment portfolio becomes just one of many components contributing to desired outcomes. Its value is elevated when treated as flexible capital — a "completion fund" designed to balance risks and opportunities embedded elsewhere in the household's financial structure.

Within this framework, risk management becomes structural rather than statistical. Instead of relying on probability‑based forecasts, advisers can use reserves, hedges, insurance, diversification and flexibility to reduce the consequences of adverse events.

Structural risk management recognizes that while we cannot change future events, we can change how they affect people.

This approach also supports scalable advice delivery. The underlying logic does not change as wealth increases. What changes is the number of moving parts and the potential consequences of poorly coordinated solutions.

Wealth allocation before optimization

Once total wealth is understood, the next step is to clarify purpose. Many affluent families already feel they have "enough," which can make goals-based and optimization‑oriented conversations feel less relevant.

Wealth allocation can offer a more compelling entry point. The conversation starts with intent: How does the family want to allocate its wealth across lifestyle, family priorities and broader impact?

This empowering framework encourages intentionality without relying on scarcity. It helps distinguish essential spending from important objectives and discretionary uses of capital. Tradeoffs that might otherwise remain implicit or emotional become explicit and manageable.

From this foundation, strategy follows.

• Asset‑liability matching can align total wealth portfolios with layers of spending and resource needs
• Estate structures can be designed more clearly to support the intended flow of wealth across generations
• Insurance can protect what must not fail
• Tax strategies can align with how wealth is meant to be used, not merely how tax liabilities can be minimized

Complexity is introduced only when it serves a clear purpose.

Importantly, this is personalization that scales. The framework remains consistent, while each family's allocation and resulting solutions reflect its unique priorities.

The virtual family office delivery model

Delivering this level of integration does not require building a traditional family office. Rather, it requires adopting a family office mindset. A virtual family office model places strategy at the center of the client relationship.

The adviser leads with comprehensive, integrated advice. Planning, investments, risk management, estate planning, tax and other domains are coordinated through a single strategic framework.

Execution can remain distributed. Attorneys, accountants, insurance specialists and other professionals are engaged as needed, but they operate within a shared framework rather than in silos. The adviser acts as the architect and integrator, without needing to own every capability in‑house.

This model scales precisely because it is disciplined. The client experience feels elevated not because more services are delivered, but because the advice is clearly structured, empowering and intentional.

Advisers can position themselves as wealth strategists who design systems rather than simply manage parts.

Ultimately, extending an advisory model upmarket is less about adding services and more about strengthening the strategic core.

Strategy becomes a distinct function, complexity is managed deliberately, teams align around shared frameworks, and advisers focus their judgment where it matters most.

Related Content

• How Financial Advisers Can Deliver a True Family Office Experience
• Ten Ways Family Offices Can Build Resilience in a Volatile World
• Do You Need a Family Office? Four Signs for the Very Wealthy
• Create a Family Dynasty for Lasting Security
• Why Venture Investing Could Be a Win-Win for Family Offices

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Family offices have long understood that wealth carries responsibility. Across generations, families have sought to make a difference through philanthropy, foundations and charitable giving aimed at improving lives and strengthening communities.

But today's most urgent challenges — health care affordability, climate resilience, educational access, technological inclusion and economic opportunity — require more than donations. They require solutions.

And solutions require capital that is patient, committed and willing to take risk.

This is where venture investing becomes not just an asset allocation, but a calling.

Traditional philanthropy plays a vital role, but it often treats symptoms rather than systems. Grants expire. Programs end. Funding must be renewed year after year.

How it works

Venture investing operates differently.

When capital is deployed to support entrepreneurs building real solutions, it creates sustainable businesses, scalable impact, self-funding models, jobs, economic mobility and long-term societal value.

In venture investing, capital doesn't disappear — it recycles. Successful companies generate returns that can be reinvested again and again, compounding both financial and social impact over time.

Solving the world's biggest problems requires risk capital

The most meaningful innovations rarely come fully formed. They emerge through trial, failure and persistence.

Breakthroughs in health care delivery, clean energy and environmental technology, education platforms, infrastructure and next-generation technology require someone willing to fund ideas before outcomes are certain.

Family offices are uniquely positioned to lead this effort. They have permanent capital, long time horizons and the ability to support entrepreneurs not just through success, but through learning.

Why family offices are natural leaders in venture investing

Innovation is rarely about one perfect idea. It is about commitment.

When something doesn't work, great entrepreneurs adapt. They change direction, apply lessons learned, refine their approach and keep moving forward.

Too often, capital structures force entrepreneurs to quit prematurely — not because the problem is unsolvable, but because patience or funding ran out.

Family offices can remove that constraint.

Many families built their wealth by taking concentrated risk, building operating businesses, navigating uncertainty, reinvesting through setbacks and thinking in decades, not quarters.

That mindset is at the core of entrepreneurship.

Venture investing is simply the modern expression of how many family fortunes were originally created. By allocating capital to early-stage innovation, family offices reconnect with the forces that generated their wealth while empowering the next generation of builders.

For families seeking to make a difference, venture investing offers a powerful complement to traditional philanthropy. It creates recyclable capital, long-term sustainability, solution-based impact and market-driven scale.

Venture investing does not replace philanthropy, but it can dramatically expand its reach.

A call to lead

The next generation of entrepreneurs is already working on the problems that matter most. What they need is capital that believes in progress, not perfection.

Family offices have the resources, perspective and responsibility to lead — funding innovation before it is obvious, supporting founders through iteration and building companies that matter.

Family offices stand at a unique intersection of wealth, patience and purpose. By allocating capital to venture investing, they can become stewards of innovation — fueling solutions that create opportunity, generate sustainable economic outcomes and leave the world better than they found it.

How advisers can help

Financial advisers can help clients get started in venture investing by creating a suitability framework, offering multiple access points (funds, vetted co‑investments and curated platforms) and using a simple, repeatable diligence checklist focused on team quality, market size, financials and valuations.

The can also ensure that clients understand that venture investments are highly illiquid and that returns vary significantly, with 40% to 60% of ventures going to zero.

Most venture returns come from a single investment in a portfolio of venture investments, so diversification and risk tolerance are key to venture investing.

Strong relationships with VCs, angel groups and accelerators — as well as client education on risks and expectations — can ensure a more structured and successful entry into the venture ecosystem.

There is no question that families need help navigating the venture space, and good financial advisers can be a great resource for them.

Related Content

• In Family Philanthropy, Embracing Differences Can Pay Off
• Five Pitfalls That Can Trip Up Your Family's Charitable Giving
• The Future of Philanthropy Is Female: How Women Will Lead a New Era in Charitable Giving
• Philanthropy Needs Innovation to Help With Social Problems
• Do You Need a Family Office? Four Signs for the Very Wealthy

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

No family plans for the phone call that comes late at night.

A parent rushed to the hospital. A frightening diagnosis. A sudden fall that changes everything. The unexpected loss of someone close.

When moments like these arrive, families quickly discover that their carefully constructed financial plans are only one piece of a much larger reality. In the middle of a crisis, the biggest challenges are rarely about investment allocations or tax strategies.

They are about people.

Over the years, both in my professional work writing about personal finance and in my own family life, I've seen how emergencies reshape the way families think about money, responsibility and decision-making.

I've lived through moments when a parent's health suddenly changed and the family had to rally quickly. I've watched relatives and friends struggle to make clear decisions while emotions ran high and information was incomplete.

Those experiences have taught me something important: When families face a crisis, the real value financial advisers provide often has less to do with technical expertise and more to do with calm leadership.

In the middle of uncertainty, someone needs to help slow things down.

When planning meets reality

Financial plans are usually built in relatively calm moments. Clients sit across from their adviser and talk through goals: Retirement income, investment strategies, estate planning and charitable giving.

But emergencies are different. They compress time and raise the emotional stakes.

When a health crisis strikes, families suddenly find themselves confronting questions that often have little to do with portfolio management:

• Who's in charge right now?
• Do we actually know Mom's or Dad's wishes?
• Who can access accounts if needed?
• How do we support each other without overwhelming each other?

These questions can catch families off guard, even when they believe they have prepared well financially.

In fact, some of the most difficult family situations I've observed were not the result of poor financial planning. They occurred because roles were unclear, communication hadn't happened in advance, or important documents weren't easily accessible when they were needed most.

A crisis doesn't just test financial preparedness. It tests family organization and emotional resilience.

The adviser's quiet role

This is where advisers often play one of the most important roles in a client's life — even if that role is not always obvious.

In the middle of a family emergency, clients may not need sophisticated investment advice. What they often need is reassurance that they don't have to solve everything immediately.

Good advisers understand that their job in those moments is partly to act as a stabilizing presence. They help clients pause, gather information and avoid rushing into irreversible decisions.

Families dealing with a sudden health event or death frequently face pressure to make quick financial choices: Selling investments, making major housing decisions or restructuring accounts in ways that might not make sense over the long term.

A trusted adviser can help create breathing room.

Sometimes the most valuable guidance an adviser offers is simply this: "Let's slow down and think this through."

Information matters — but so does timing

In the early hours or days of a crisis, information often arrives in fragments. Medical updates may change. Family members may be scattered geographically. Emotions can run high.

Under those conditions, people are more likely to jump to conclusions or react impulsively.

One lesson I've learned from watching families navigate emergencies is that timing matters. The first step is rarely making a financial decision. The first step is understanding the situation clearly.

That may involve gathering medical information, clarifying legal authority or identifying who will communicate updates to other family members.

Once the immediate situation stabilizes, financial questions eventually follow. But they can be addressed more thoughtfully once the family has had time to absorb the reality of what's happening.

Advisers who recognize this dynamic can help clients avoid decisions they might later regret.

The importance of roles

One of the most common sources of stress during family emergencies is confusion about responsibility.

If several siblings are involved, it's not always obvious who should take the lead on medical decisions, financial matters or communication with extended family.

Without clear roles, everyone may assume someone else is handling things — or several people may attempt to take charge at once.

Financial advisers are often in a unique position to help bring clarity to this process.

Because advisers frequently know the family's financial structure — accounts, trusts, insurance policies and estate plans — they can help identify who has legal authority and who should be involved in key decisions.

In some cases, advisers also become informal coordinators, helping families understand the practical steps that need to happen next.

Preparing before the crisis

The most resilient families I've seen during difficult moments have one thing in common: They prepared in advance.

That preparation doesn't always mean having complex financial structures in place. More often, it means that families have already had conversations about roles, expectations and wishes.

Parents have told their adult children where key documents are stored. Powers of attorney are clear and up to date. Account access has been discussed.

Perhaps most importantly, family members have talked about values — what matters most if circumstances change.

These conversations can feel uncomfortable when everything is going well. But they can make an enormous difference when life takes an unexpected turn.

The human side of planning

For advisers, family emergencies offer a powerful reminder that financial planning is ultimately about people, not just numbers.

Clients rarely remember the exact details of portfolio adjustments or tax strategies years later. What they remember is how they were treated during the most stressful moments of their lives.

They remember the adviser who returned calls quickly, who listened carefully and who helped them think clearly when emotions threatened to overwhelm judgment.

In many ways, the adviser's role during a crisis reflects the broader purpose of financial planning: Helping families navigate life's transitions with confidence and clarity.

Money matters, of course. But in moments of crisis, the deeper value of planning becomes clear. It provides structure, reassurance and a framework for decision-making when the path forward suddenly feels uncertain.

Key roles family members can play during a crisis

When a health emergency or sudden loss occurs, uncertainty about responsibility can quickly add stress. Families often cope better when a few key roles are clearly defined.

One person may take on more than one role, but clarity helps prevent confusion and keeps important tasks moving forward.

Medical liaison. Serves as the primary contact with doctors and hospital staff, gathers medical updates and shares them with the family. Recommended skills: Ability to communicate clearly and process complex information.

Money manager. Tracks accounts, insurance and income while coordinating with advisers or attorneys if needed. Helps prevent rushed financial decisions. Recommended skills: Financial organization, calm decision-making.

Family communicator. Updates siblings and extended family, helping avoid misinformation and unnecessary stress for caregivers. Recommended skills: Clear communication and diplomacy.

Bill payer. Manages routine financial tasks such as paying bills and monitoring automatic payments during the crisis. Recommended skills: Attention to detail and reliability.

Emotional regulator. Provides a steady presence, listening and helping family members stay grounded when emotions run high. Recommended skills: Emotional intelligence and patience.

Long-range planner. Steps back from the immediate situation to consider longer-term care and financial and lifestyle decisions. Recommended skills: Strategic thinking and problem-solving.

Housing navigator. Researches housing or care options such as rehabilitation centers, assisted living or home modifications if needed. Recommended skills: Research ability and practical judgment.

Families that clarify these roles in advance often navigate difficult moments with greater cooperation and confidence.

The bottom line

Family emergencies are never easy. But they often reveal the strength of relationships — within families and between clients and their advisers.

When planning has been done thoughtfully and conversations have happened early, families are better prepared to face whatever comes next.

And when advisers approach their work with a human-centered mindset, they can provide something that goes far beyond financial expertise.

They can provide calm, clarity and support when clients need it most.

Related Content

• Separating the Pros From the Pretenders: This Is How to Tell if You Have a Great Adviser
• How Her Financial Adviser Changed Her Life
• 5 Ways to Help Sort the Best From the Rest When Hiring a Financial Adviser
• 8 Practical Ways to Declutter Your Life in 2026: A Retirement 'Non-Resolution' Checklist
• How a Retirement Housing Navigator Can Help You Make That Pivotal Move

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In the financial advising world, success isn't just about production. It's about people: The clients who trust you to guide them through life's biggest financial decisions.

Building strong relationships with your clients is more than just a nice-to-have; it's the secret sauce that can set you apart in a crowded industry.

One of our advisers, Dale Smothers, founder of R.D. Smothers Wealth Management in Campbellsville, Kentucky, and a Kiplinger contributor, puts it this way: "We are in the relationship business, not the sales business. If you view yourself as a relationship manager, things get a whole lot easier on the back end."

By focusing on meaningful, personalized, branded touchpoints, Smothers has created a client experience that not only strengthens relationships, but also helps his firm stand out from the competition.

Strong relationships: Your best investment

As Smothers' comment suggests, trust is everything. Clients want someone who understands their goals, values and dreams — not some impersonal investment picker who just manages their money. That's why strong relationships are the foundation of a thriving practice.

But relationships aren't just about connection — they're also about perception. Every interaction with a client is an opportunity to reinforce your brand and remind them why they chose you. From the tone of your emails to the design of your newsletters, your brand is always communicating.

Here's how great client connections and a strong brand can transform your business:

Retention and loyalty. When clients feel valued and understood, they're more likely to stick with you, even during market turbulence or life changes

Increased assets. Satisfied clients are more inclined to entrust you with additional assets as their wealth grows and their financial needs evolve

Referrals and advocacy. Happy clients spread the word. They'll refer friends and family and become vocal advocates for your services

By investing in your relationships and your brand, you build long-term success.

Strategies to 'wow' your clients

Great relationships don't just happen. They're developed through consistent, thoughtful actions that show clients you care and remind them of your unique value.

The good news? You don't need a massive budget or endless hours to make a lasting impression. Small, meaningful gestures — especially branded ones to reflect your identity — can go a long way in creating connections that clients remember and value.

Here are some strategies to help strengthen your client relationships and keep your brand top of mind:

1. Celebrate milestones. Recognize birthdays, anniversaries, retirements and other significant life events with personalized cards or small gifts. Branded touches, such as a card with your logo or a gift box featuring your firm's colors, make these moments even more memorable.

2. Send personalized newsletters. Regular newsletters tailored to your clients' interests and financial goals keep them informed and engaged. Include updates about your firm, market insights and even personal stories or staff celebrations to add a human touch.

Branded newsletters reinforce your identity with every mailing.

3. Offer educational resources. White papers, guides and other educational materials can position you as a trusted professional while providing real value to your clients.

Adding your logo and branding to these materials helps ensure your knowledge is always associated with your name.

4. Host client events. Invite clients to exclusive events, such as seminars, appreciation dinners or webinars. These gatherings foster a sense of community and provide opportunities for deeper connections.

Branded invitations and event materials can elevate the experience and leave a lasting impression.

5. Stay consistent with touchpoints. Regular communication — whether through emails, phone calls or mailings — keeps your brand in clients' thoughts and reinforces your commitment to the relationship.

The power of personalization

Smothers has seen firsthand how personalized, branded marketing can transform client relationships. His firm uses Advisors Excel's Print on Demand service to deliver customized newsletters, milestone cards and other branded materials that resonate with clients in a meaningful way.

"Clients often mention the joy of receiving something in the mail that feels relevant and heartfelt, not just another generic update," he says.

These gifting and communication efforts have also helped R.D. Smothers Wealth Management stand out in a crowded market.

Smothers notes that "the majority of prospects who come into our firm before they become clients are leaving their adviser because they feel like they're not cared about or don't have a relationship with that company."

By consistently engaging with clients in a personalized and authentic way, Smothers' team has built a loyal client base that not only stays but also advocates for the firm.

Executing these strategies doesn't have to be time-consuming, either. Services such as Print on Demand simplify the process, allowing advisers to customize and order branded materials, from guides to gifts and invites to informative events — quickly and efficiently.

Stronger bonds, stronger business

In the end, the effort you put into developing and maintaining client relationships pays off — not just in loyalty and retention, but in referrals, advocacy and long-term growth.

By focusing on personalized, consistent communication and leveraging the power of your brand, you can gain clients for life and build a practice that thrives on trust, connection and a strong identity.

Related Content

• The Referral Revolution: How to Grow Your Business With Trust
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• Optimize, Grow, Retain: The Power of Annual Client Reviews
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• Savvy Marketing Tips for Financial Pros From a Financial Pro

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Here is a question worth considering if you sold an appreciated asset in 2025: Could you benefit from moving that capital gain out of your 2025 tax year entirely?

Recent legislation made Qualified Opportunity Fund (QOF) tax incentives a permanent feature of the U.S. tax code; taxpayers can defer a capital gain by reinvesting it into a QOF within 180 days of the deemed realization date.

The regulations governing when the eligibility window begins are often more flexible than taxpayers and financial advisers realize.

Almost any capital gain qualifies: Stock sales, real estate, business exits, crypto, partnership interests, Section 1231 gains and even the capital gain portion of REIT or RIC dividends. The primary exclusion is a gain treated as ordinary income, including depreciation recapture.

Additionally, there are no minimum or maximum investment requirements. A gain of $10,000 or $10 million is equally eligible.

Who is still in the tax-deferral window?

For direct sales of stock, real estate or a business, the 180-day clock starts on the closing date of the transaction. Investors with transactions that closed in the second half of 2025 may still have time remaining.

For investors who received capital gains through a partnership or S corporation, the window is longer still. The final Treasury regulations give these investors three options for when their 180-day clock begins:

• Option 1 — default: The last day of the entity's taxable year. For a calendar-year partnership or S corporation, that is December 31, 2025, giving investors until June 29, 2026, regardless of when during 2025 the underlying asset was sold.
• Option 2 — elective: The entity's return due date, without extension, typically March 15, 2026, for partnerships and S corporations, extending the deadline to September 11, 2026.
• Option 3 — elective: The same date the partnership's own 180-day period began — the date of the underlying sale. This is the shortest of the three options and is useful mainly for investors who learn of the gain promptly and want to act immediately.

Beneficiaries of decedents' estates and non-grantor trusts have access to the same three options. Grantor trust gains follow direct-sale timing.

Already filed? The door may still be open

A QOF investment can be made even after a tax return has been filed. As long as the taxpayer makes the qualifying investment within the applicable 180-day window, they can amend the return to complete an eligible QOF investment.

This is fundamentally different from a 1031 exchange. In a 1031 transaction, filing a tax return before the exchange is completed terminates the exchange, and the mistake cannot be cured by amending the return.

Deferral as a tax-planning asset

To understand the planning value, it helps to understand exactly what the deferral mechanism does and doesn't do. Investing in a QOF does not change the character of the original capital gain:

• A long-term gain stays long-term
• A short-term gain stays short-term
• Gains from collectibles remain gains from collectibles

The only thing that changes is the realization date. The gain is deferred and unrecognized until the QOF investment is sold or the statutory deferral period ends. At that point, it is recognized exactly as it would have been originally, just in a later tax year.

That timing shift is where the planning value lives. Because the investor controls when the QOF investment is sold, they can determine when the deferred gain is recognized.

That flexibility can prevent the gain from pushing the taxpayer into a higher marginal bracket, triggering IRMAA surcharges for Medicare, increasing the taxation of Social Security benefits, or crowding out Roth IRA conversion capacity during the pre-RMD window, among other planning considerations.

The point is that the deferral decision creates tax planning options.

There is also a longer-term strategy that can position an investor for opportunity zone (OZ) 2.0. When a QOF investment is sold, the deferred gain is recognized at that time, complete with a fresh 180-day window to reinvest in another QOF and continue the deferral.

The current statutory deferral period ends December 31, 2026, although the tax elimination benefit for investors who hold a QOF for at least 10 years continues through 2047.

The new OZ 2.0 legislation offers enhanced incentives, but only for QOF investments made on or after January 1, 2027. An investor who defers a 2025 gain into a QOF today can later sell that position, triggering a fresh 180-day reinvestment window.

This gives them the potential to reinvest in a QOF in 2027, capturing the enhanced OZ 2.0 tax incentives, a planning approach known as the "bridge strategy." Deferring now preserves future tax planning options.

Example: Shifting income recognition

In 2025, the owner of a growing business experiences a peak income year. At year-end, they sell the business and retire. As they review their 2025 tax situation in the spring of 2026, they realize that the combination of high earned income and the capital gain on the sale of the business has created an inefficient after-tax result.

They may be facing higher effective tax rates, exposure to net investment income tax (NIIT), higher Medicare surcharges and the phaseout of the bonus deduction for people 65 and older and other benefits they had been expecting.

Fortunately, it is not too late for OZ tax incentives to defer recognition of last year's taxable capital gain. By deferring recognition of the gain into a lower-income retirement year, the taxpayer can materially improve after-tax outcomes. And depending on the situation, the eligibility window may still be open well into 2026.

The conversation advisers can have with their clients

Tax season presents a timely opportunity for advisers to have this conversation with their clients. Clients are reviewing 2025 capital gain line items and writing checks to the IRS, often with no idea that the gain could still be redirected. The question is straightforward: When did the gain occur, and how was it generated?

A direct sale in the second half of 2025 may still fall within the 180-day window. A K-1 gain from a partnership or S corporation almost certainly will. Even a client who has already filed may still have the ability to amend.

The 180-day window is one of the few provisions in the tax code that gives investors a genuine second look at a completed transaction. Advisers who ask the right questions will find that the opportunity is more common than many practitioners expect.

This article is for informational purposes only and does not constitute tax, legal, or investment advice. QOF eligibility rules are complex and fact-specific. Consult a qualified tax professional before making investment decisions.

Related Content

• I'm a Wealth Adviser: This Strategy Can Slash Your Taxes on Large Stock or Property Sales
• Five Strategies to Defer Capital Gains in Real Estate Investing
• 1031 Exchanges vs Opportunity Zones: Which Has the Edge?
• I'm a Real Estate Expert: 2026 Marks a Seismic Shift in Tax Rules, and Investors Could Reap Millions in Rewards
• I'm an Opportunity Zone Pro: This Is How to Deliver Roth-Like Tax-Free Growth (Without Contribution Limits)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Estate planning can be a complex process during which professionals collaborate to achieve their clients' goals.

Financial advisers and wealth managers sit at this table, working with lawyers, tax accountants, trust officers, insurance specialists and real estate professionals, among others.

However, financial advisers can get more involved in estate plan preparation and analysis — providing more value to clients, forging a deeper relationship with them and increasing revenue — with the help of modern estate planning tools.

These tools can help create estate plan documents (wills, trusts, powers of attorney, etc.), centralize financial documents, analyze existing estate plans, provide personalized insights, automate repetitive tasks and integrate tax planning strategies.

There are so many of these tools on the market, financial advisers often struggle to choose the best one. In this article, I compare four pieces of estate planning software that I believe may offer particularly good value.

1. EncorEstate Plans

EncorEstate Plans combines estate document creation and trust funding in one platform and helps financial advisers integrate estate planning into client services. It's best for clients who requires basic to complex estate planning.

Key features:

• Trust funding. EncorEstate Plans has a trust funding service that allows advisers to transfer ownership of assets into the trusts they create on behalf of their clients.
• Human review and trusted guidance. Every estate plan goes through a 60-point quality review by an estate planning professional. EncorEstate Plan's back office also includes paralegals and attorneys who can provide trusted guidance.
• Flexible pricing. Advisers can pay for each plan or opt for a subscription-based model, if you have a larger clientele, for example.
• Custom documents. When required, advisers can create custom documents, such as restatements, QDOT language and Special Needs Trust provisions.

2. Vanilla

Vanilla is an estate planning platform designed for financial advisers with clients who require basic to complex estate planning services. It uses AI-powered tools to help create comprehensive plans.

Key features:

• Comprehensive estate planning. Vanilla covers various components of the estate planning process, including document creation, balance sheet analysis, tax projections and tax planning.
• Dynamic estate planning. Advisers can create comprehensive plans for all types of clients, from individuals with simple estates to high-net-worth individuals with more complex estates.
• Visually appealing dashboards. One of the unique selling points of Vanilla is its intuitive and visually appealing dashboards and polished deliverables.
• Branded tools. Advisers can include their branded identities when sending customized reports to clients, helping to increase their perceived value.

3. Wealth.com

Wealth.com is an estate planning platform for financial advisers that helps them manage the process for mass affluent, high-net-worth and ultra-high-net-worth clients.

Key features:

• Flexibility. Financial advisers can create estate plans for a wide variety of clients, from mass affluent to ultra-high-net-worth clients.
• Scenario builder. Advisers can visualize how tax liabilities and estate distributions change when a component of the current plan varies.
• Dynamic visuals. The platform provides visually appealing charts and documents that clients will love to read.
• Insights from existing documents. Ester, Wealth.com's AI tool, can analyze existing estate plans and provide recommendations and insights for improvement.

4. FP Alpha

FP Alpha is a financial planning tool that evaluates estate plans, tax returns and insurance policies. It provides AI-powered insights (opportunities, gaps and risks) that advisers can share with their clients.

FP Alpha is therefore ideal for advisers whose clients already have estate plans prepared, either by themselves or other professionals.

Key features:

• Customized deliverables. FP Alpha's AI agent will summarize various estate plans into an Estate Snapshot that will be the basis of advisers' client communications.
• Scenario building. The Estate Planning Lab shows how clients' estate plans will change if they implement the insights recommended by the AI agent.
• Holistic financial planning. Advisers can also use FP Alpha for tax planning, insurance planning and prospecting, making it an all-in-one platform.

A side-by-side comparison of all four tools

These four tools help advisers expand their assets under management (AUM) and build deeper relationships with clients by providing more value.

The following comparison can help advisers evaluate all the options and choose the one that fits best with their advisory business and clientele.

* Adviser satisfaction scores are based on The-Kitces-Report 2025

Financial advisers would do well to fully explore the technology available to them, thinking about best value and fit as they seek to provide clients with even greater benefits and support.

Related Content

• I Met With 100-Plus Advisers to Develop This Road Map for Adopting AI
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• How Financial Advisers Can Deliver a True Family Office Experience
• Tax Software vs a Tax Professional: Which Should You Choose?
• I'm a Financial Planner: Here's How You Can Use AI to Improve Your Finances

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For advisory firms with a large client exposure to alternative investments, tax season unearths operational gaps they did not anticipate.

The mad manual scramble for K-1s and amended forms strains operations. For decades, I have seen these pressures disrupt even the most talented teams and force advisers into reactive decision-making that erodes the confidence in accuracy and completeness and affects staffing and client trust.

In practice, investment sophistication often outpaces back-office infrastructure. Even established advisory firms can find themselves unprepared as new funds add layers of complexity that overwhelm legacy workflows.

When operational systems lag behind investment strategy, the strain often surfaces at the most challenging times. To successfully scale alternatives, infrastructure must keep pace with investment strategy; otherwise, firms risk preventable delays and client frustration.

Understanding the operational cost of alternatives

A traditional portfolio built primarily from publicly traded securities generates predictable reporting with few numbers to be considered. Add multiple private funds, each issuing its own Schedule K-1 on its own timeline, and sometimes with amended versions, and the environment changes drastically.

Hundreds of numbers, each with its own tax impact and evaluation needs, can shift the burden from a simple repeatable process to a time-consuming, interpretive mess — sometimes leaving teams number-numb after hours of review. This is where advisers face the cumulative weight of document delays and compressed deadlines.

Ten K-1s across a single client might be manageable. Fifty or 100 can overwhelm a system designed to manually collect from multiple sources, convert PDFs to usable information and manually track in spreadsheets.

Delays become routine. CPAs may wait for documents that arrive in late summer, well beyond the original return due date, while advisers and support staff spend hours interpreting the information therein, often cramming months of coordination into just a few intense weeks.

Furthermore, while operational strain generates zero revenue, it consumes an advisory firm's most valuable resources: Partner time and professional focus.

Even the best investment strategy creates drag if the underlying infrastructure is not built for the reporting demands that follow.

When these administrative demands are underestimated, bottlenecks extend beyond the back office, slowing planning and straining staff capacity. What begins as a minor processing delay, when multiplied across a high-net-worth client base, quickly leads to a difficult tax season that frustrates both advisers and clients.

Identifying vulnerabilities in advisory workflows

Breakdowns usually occur at small, repeatable friction points that compound under pressure. Manual tracking of K-1s, document collection through multiple inboxes or portals and inconsistent handling of amended forms are common pitfalls.

Many advisory firms rely heavily on one or two operations professionals who "own" the process. However, that setup often creates a fragile, person-dependent system. If these individuals are unavailable or overwhelmed during peak season, bottlenecks emerge.

Clients may not see the internal strain, but they experience the effects in delayed filings and unclear communication.

Even when delays originate with fund managers, the advisory firm bears the relationship risk.

Streamlining workflow

The solution is not to reduce exposure to alternatives but to ensure that operational processes scale with portfolio complexity. This means advisers should review the full tax document lifecycle, tracking each step from initial issuance through final client delivery.

Mapping every handoff makes it easier to identify recurring bottlenecks and remove avoidable sources of delay.

Consistency is one of the strongest defenses against disruption. By centralizing document intake and standardizing how amended forms are handled, advisory firms gain visibility and reduce guesswork.

For example, centralized collection, tracking and processing reduces upfront administrative burdens and minimizes the kind of mindless copy-and-pasting that consumes hours without adding value.

Clear ownership and accountability ensure that someone is responsible for monitoring document flow rather than reacting once deadlines loom.

Proactive client communication also changes the conversation. Advisers who alert clients early to potential risks help preserve trust and reduce frustration.

Finally, stress-testing current systems against increased alternative allocations can highlight gaps before they become crises. Conducting a mock run of tax season workflows or simulating higher volumes helps advisory firms uncover weak spots while there is still time to correct them.

Planning staffing and workflow for growing alternative exposure

Alternatives increase administrative demands alongside potential returns. Each additional private investment introduces new reporting complexities, data formats and coordination requirements.

Many advisory firms absorb this workload through extended hours and informal workarounds during the busy season. The system may appear to function but often relies on sustained manual intensity, with teams working nights and weekends to keep up.

Capacity planning should account for structural complexity, not just assets under management. Advisers need to evaluate how many staff hours are spent tracking documents, converting PDFs to Excel and whether high-value professionals are engaged in repetitive, rules-based work.

Protecting staff from burnout is not a soft goal. It is a practical advantage that helps teams to focus on strategic advisory work.

I often advise firms to audit task distribution to identify what can be standardized or delegated. Small adjustments, such as early document requests and shared dashboards, help shift the focus to a high-value client strategy.

Aligning growth with operational readiness

Alternative investments are not inherently disruptive. Misalignment is. When portfolio complexity outpaces the operating model, the strain often appears first in the client experience through unclear requests and compressed deadlines.

Before increasing alternative allocations, advisers should confirm that the firm can run a controlled, trackable document cycle end-to-end.

That requires visibility into document status, clear ownership at each step and a seasonal capacity plan that does not depend on last-minute escalation as a default.

Scaling operations alongside portfolio strategy transforms tax season into a managed, predictable process. Firms that identify bottlenecks early and implement clear handoffs deliver timely updates and fewer frantic requests — this reinforces client trust.

In the same way, it moves teams from document chasing to high-value planning and review, which creates sustainable capacity.

As alternative investments expand, operational readiness becomes the bedrock of growth that protects relationships while helping the firm to scale without burnout.

Related Content

• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Clients today feel more uncertain than ever — and for good reason. At the macro level, what's driving this uncertainty can be summarized by a simple concept: Expectation vs reality.

In other words, it's common for there to be a mismatch between what we think will happen and what actually happens.

This creates a disorienting feedback loop that changes what people think assets are worth so rapidly that investors struggle to keep up. It's like planning your weekly grocery budget assuming milk costs $3 per gallon, only to find it's $3.50 when you arrive at the store and $3.25 by the time you reach the cash register.

With trade dynamics, AI developments and policy shifts constantly changing the perceived value of investments, the speed of change has become the real problem.

The challenge for advisers lies in recognizing that this uncertainty stems from more than just change itself. Investors are nervous because they don't comfortably understand what something is worth or trust that its worth will remain consistent.

This drives a "take the money and run" mentality, where clients prefer the certainty of today's value over tomorrow's uncertainty.

What clients truly need is an informed perspective and a plan that already accounts for future uncertainty.

From predictions to wisdom

In my view, the adviser's role is evolving away from forecasting toward being a steady, informed guide through complex times. This requires advisers to understand macro forces shaping the environment and explain to clients how their existing plans already account for these external forces.

Wisdom comes from helping clients see that their adviser is informed and has thoughtfully prepared for uncertainty, rather than reacting to every headline.

At AE Wealth Management, we've developed the PAGE framework to organize the major forces shaping today's environment and help advisers lead more effective client conversations. The framework represents four structural forces influencing markets, businesses and household finances:

P – policy divergence

A – AI vs economic impact

G – global fragmentation

E – economic disparity

These forces create ongoing uncertainty, but understanding them allows advisers to help position clients for whatever develops next.

Policy divergence: When rules change rapidly

Governments worldwide are moving in different directions on trade, regulation, interest rates and fiscal policy. Markets constantly reprice expectations based on new policy developments, creating sudden volatility when those expectations shift.

This divergence impacts inflation, interest rates, business growth and investment risk. Rather than reacting to every policy headline, well-constructed financial plans account for policy uncertainty over time through appropriate diversification and risk management.

Advisers who understand policy dynamics can help clients see beyond the headlines to focus on long-term positioning. The goal involves building portfolios resilient enough to handle various policy outcomes rather than betting on specific directions.

AI vs economic impact: Innovation meets reality

Massive excitement surrounds AI's growth potential, but real-world factors will influence actual outcomes.

For example, energy represents a key factor in AI's ability to generate revenues necessary to justify current stock prices. And questions about power supply for data centers and infrastructure constraints will affect how quickly AI can deliver on its promises.

Markets often price in big expectations, while reality unfolds more slowly or differently than anticipated. Rather than trying to predict whether we have enough power supply for all the AI projects companies have signed up for, advisers can help clients understand how innovation fits into long-term strategies with appropriate risk management.

The key lies in recognizing that transformative technologies often take longer to deliver promised benefits than initial enthusiasm suggests. Depending on how energy and infrastructure challenges work out over the next 12 to 18 months, markets could respond positively or negatively.

Patient capital positioned for long-term trends tends to outperform reactive approaches based on short-term excitement.

Global fragmentation: A more divided world

Countries are becoming increasingly protectionist as trade relationships shift and geopolitical tensions affect supply chains and markets. This fragmentation impacts corporate profits, inflation and market stability while increasing uncertainty around global growth.

Traditional assumptions about global integration and free trade no longer hold as reliably as they once did. Supply chains are reorganizing around security considerations rather than pure efficiency, creating new cost structures and investment opportunities.

Well-constructed portfolios anticipate these global shifts through geographic diversification and exposure to companies positioned for a more fragmented world rather than chasing short-term reactions to geopolitical events.

Economic disparity: The K-shaped economy

Different segments of the economy grow at vastly different rates, with some industries and households thriving while others struggle. This can create uneven market performance and influences consumer behavior, employment patterns and investment returns.

Traditional models assuming smooth, uniform growth across the economy no longer reflect reality. Financial plans must account for this uneven landscape rather than expecting consistent outcomes across all sectors and demographics.

Successful advisers help clients position for this disparity through diversified approaches that can benefit from growth areas while avoiding overexposure to struggling sectors. The focus shifts to building resilience across various economic scenarios.

Building trust through informed conversations

There are two ways to drive revenue for financial advisers: 1) continue to retain the clients you have today to serve them longer and 2) encourage new families to do business with you. The PAGE framework helps advisers work towards accomplishing both objectives:

Stronger client retention can develop when advisers who understand these four macro conversations can have informed discussions with current clients. They retain families for longer and potentially capture higher wallet share over time because they're seen as well-informed and authoritative advisers.

Clients don't necessarily need advisers to provide directional market calls; they want advisers who can articulate that their plan already accounts for uncertainty and demonstrate that preparation within their plan.

Smarter prospect conversations can emerge when advisers can ask thoughtful questions, such as "How is your investment and financial plan prepared to deal with these four macro themes this year?"

The goal is for prospects to respond with statements like "I'm not sure" or "I don't know."

This opens the door for meaningful dialogue about comprehensive financial planning and provides a natural wedge for advisers to explain their approach.

Confidence over constant change

Change will continue accelerating, and uncertainty remains part of the investment environment rather than something to eliminate. Advisers who understand and communicate macro forces become indispensable partners for families navigating an increasingly complex world.

PAGE represents more than just a framework for understanding current conditions. It helps provide a foundation for building confidence through knowledge rather than predictions.

Clients can gain clarity not from knowing what will happen next, but from understanding how their plans are designed to handle whatever develops.

In our faster, more complex world, the ability to provide this perspective becomes the ultimate differentiator for successful advisory practices.

Related Content

• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• Optimize, Grow, Retain: The Power of Annual Client Reviews
• Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
• Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
• Are Clients Asking About Adding Crypto to Their Retirement Plans? This Is How Advisers Can Approach This New 401(k) Frontier

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

I love my job. As part of Vanguard's Financial Advisor Services team, I meet with financial advisers across the country to discuss their fast-growing technology stacks and determine how they can use AI to deliver better investment outcomes to their clients in a responsible way.

Our advice is to always focus on improving outcomes for investors, and that may mean using AI to help free up time that can be dedicated to supporting clients. Vanguard research shows the real benefit for clients lies in behavioral coaching.

But for advisers to use AI in ways that truly lead to better outcomes, they need to understand and trust it. In our 100-plus meetings with advisers in 2025 alone, these are their most common AI-related questions.

How can I get started using AI?

As you get started using AI, consider your north star. If you haven't developed a north star — what you want to accomplish with AI — you should. The north star should be established at the C-suite level, be mission-aligned and include a governance framework.

Vanguard's north star, for example, is to use AI to deliver better investor outcomes in a responsible way.

At the more tactical level, advisers who are newer to AI adoption are looking for quick, practical productivity wins. For advisers, the easiest wins involve using AI to support client interactions, summarize information and draft everyday content.

Every step of a client touchpoint can, and should, be enhanced with AI:

• Before a meeting, a GenAI application can create prep materials summarizing email activity and previous engagements logged in your customer relationship management (CRM) system
• During the meeting, AI can transcribe and take notes, allowing you to be more engaged
• After the meeting, AI can create customized follow-ups to keep the conversation going

As you continue using AI to help with client engagements, it will learn from your feedback and build its database of client communications, providing stronger drafts in the future.

Between client meetings, advisers spend much of their time reading and analyzing complex documentation — market perspectives, forecasts, economic news and policies, and so on.

At Vanguard, we leverage GenAI tools to summarize our market updates and perspectives to help advisers create personalized insights for clients based on their financial acumen, allowing advisers to more quickly get actionable information in their clients' hands.

Speed is of the essence when building trust with clients, and AI can help.

How can I build a data foundation that maximizes my AI tools?

You may have heard the phrase "garbage in, garbage out." Your AI tools are only as good as the data you have. In our conversations, many advisers have expressed that inconsistent data is a top constraint on AI value.

Beyond simple data collection from a CRM system or related tool, data classification and architecture are critical components to any enterprise AI strategy.

As advisers collect data for an AI tool to leverage, classification is critical. Advisers must ensure they have a system that designates access levels for all information, from simple emails to personal client data.

Most companies have established policies to designate data as being confidential, public and in-between. Those companies must ensure their AI tools — and their team members — understand and adhere to them.

For larger firms, investing in data engineers can be a great first step to create accountability in data classification and metadata development. By cleanly organizing data, AI tools can work more efficiently.

How do I find the right vendors?

When sourcing vendors, your north star and current tech stack and data infrastructure must be considered. Vendors that can stitch together existing tools such as CRM platforms, email platforms, content repositories and more can help avoid some of the "swivel chair" work that comes from platforms not being truly integrated.

Enterprise data privacy is a critical safeguard. It ensures your data remains within your organization's boundaries. Your vendor's technology must clearly distinguish what data it can and cannot use, preventing any information from being fed back into the LLM during employee interactions.

While most providers claim to offer this protection, we recommend validating it through a pilot period.

We also recommend that companies have multiple lines of "human-in-the-loop" governance reviews with quality control checks before any AI use case is made widely available. This can address potential hallucinations or biases and ensure any generated content is compliance-approved and aligned with your brand.

Even after these checkpoints, employees should still be trained on responsible use cases with any new tool.

What's next with AI?

When discussing AI adoption with advisers, I tend to define adoption in three stages, or the three As: assist, augment, and action. The industry is well into the "assist" stage, as advisers are already using algorithmic models to estimate Social Security income and health care costs in retirement.

In the near future, we are likely to see GenAI take these tools to the next level, supporting advisers with portfolio health checks, analysis and recommendations, moving us into the "augment" stage.

Further out, we will enter the "action" stage, where AI will move beyond helping to taking actions on the adviser's behalf. Advisory firms will leverage AI agents to execute tasks such as portfolio monitoring, rebalancing and routine client service, allowing advisers to focus fully on strategic planning and relationship building with their clients.

From quick productivity wins to building a robust data foundation and selecting the right partners, success with AI starts with clarity of purpose and responsible governance.

Advisers who embrace these principles will not only streamline operations but also free up time for what matters most: Guiding clients through complex financial decisions with confidence and care.

Related Content

• In 2026, the Human Touch Will Be the Differentiator for Financial Advisers
• The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
• Sorry, But AI Alone Doesn't Cut It for Financial Planning
• How AI and Human Expertise Are Changing Wealth-Management Services
• How Technology and Agile Are Reshaping Customer Experience in Financial Services

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Picture this scenario: You're standing at the front of a steakhouse private room, halfway through your presentation. In the crowd, several attendees are nodding along and taking notes — proof that dinner seminars can be a great way to connect with potential clients. Still, you can't help but also notice a few guests focused more on the ribeye than the retirement strategies you're sharing.

For financial professionals, this experience is familiar. Dinner seminars have long been a reliable way to attract new clients.

But as marketing costs rise and consumer skepticism grows, some advisers find that seminars often attract people who are there for the free meal rather than for genuine financial advice.

Is there a better way? Can you stop chasing cold leads and start attracting high-quality prospects who actually share your values?

The answer may lie in a fundamental shift: Moving from transactional marketing to relationship-based referral marketing.

It's a strategy that could transform your entire practice, as demonstrated by Cramer & Rauchegger, a firm based in Maitland, Florida.

The high cost of cold marketing

Before finding a sustainable path, Scott Cramer and Tom Rauchegger, the founders of the firm, faced the same grind many advisers experience today. Their calendar was packed with three seminars every eight days. They were churning through venue rentals, direct-mail campaigns and catering bills.

While they were generating appointments, the cost of acquisition was steep — both financially and emotionally. They realized they were inviting the public and hoping to find qualified prospects. It was an expensive game of chance.

This is a critical reminder for any financial professional that prioritizing volume over value can be exhausting and inefficient. The key is to stop asking, "How do I get more bodies in the room?" and start asking, "How do I get the right bodies in the room?"

The psychology of referrals

The shift to a referral-only model isn't just about saving money; it's about leveraging trust.

When a prospect comes from a cold channel, you build trust from ground zero. With referrals, they borrow trust from the referrer.

During their transition, Cramer and Rauchegger discovered research suggesting that the conversion rate for qualified referrals hovers around 90%. This aligns with the famous business axiom: "All things being equal, people will do business with a friend; all things being unequal, people will still do business with a friend."

To make this shift work, you must change your mindset. Existing clients aren't just accounts; they're your advocates and most effective sales force.

Strategy No. 1: The honest conversation

One of the hardest hurdles for advisers is the fear of asking for help. However, transparency is a powerful tool. When Cramer and Rauchegger pivoted, they called a "town hall" meeting with their top clients — the 50 to 60 households they enjoyed working with the most.

They were honest about the changes, explaining that they wanted to focus entirely on serving their existing families better. They asked for help in building a community of like-minded people.

Key takeaway: Don't be afraid to tell your top clients that you want to clone them. Explain that you do your best work for people just like them and that you want to build your business around those shared values.

Strategy No. 2: Reframing the 'ask'

Many advisers struggle with referrals because it feels like begging: "Please give me a name so I can grow my business."

The approach needs to be reframed around value. The goal isn't to get a favor from the client; it is to provide such exceptional service that the client wants to share a name.

Cramer puts it this way: "We don't want you to refer us because you think you're helping us. We want to do such a good job for you that you're excited to refer us."

When you frame referrals as a benefit to the client's friends and family — ensuring their loved ones are taken care of by someone they trust — it removes the awkwardness. It transforms the referral from a transaction into an act of care.

Strategy No. 3: The 'gala' approach

If you're looking to complement or diversify your marketing beyond traditional dinner seminars, consider where your event budget can have the most impact.

You reinvest it in your clients. Instead of public seminars, consider hosting "Appreciation Galas" or social events where admission is simple: The client brings a guest.

• Educational events. In some months, host dinners with presentations on your services or market updates to emphasize your professional experience.
• Social events. In other months, host social gatherings that help build relationships.

This creates a natural, low-pressure environment. The guests (referrals) get to meet you, but more importantly, they get to meet your other happy clients. The social proof in the room does the selling for you.

The ROI of relationships

The results of this strategy speak for themselves. In the case of Cramer & Rauchegger, the firm trimmed its marketing budget, spending only 0.2% of its assets under management on client acquisition.

But the return on investment wasn't just financial; it was cultural, too.

Benefits of a referral-only model:

• Higher closing ratios. With a 90% conversion rate, you spend less time selling and more time advising.
• Natural filtering. Clients tend to hang out with people who share their socioeconomic status and values. This means prospects are likely to be as pleasant to work with as your best existing clients.
• Enjoyable work environment. As Rauchegger noted, events become celebrations rather than awkward networking sessions, allowing you to spend time with people you like.

Conclusion

Transitioning to a referral-based practice requires courage. But if you can execute this pivot — fostering true partnerships, communicating with transparency and reinvesting in your advocates — you won't just build a more profitable business; you will build a business that gives you the freedom to enjoy your success.

Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier.

Our firm is not affiliated with the U.S. government or any governmental agency. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 5154512 – 1/26

Related Content

• Savvy Marketing Tips for Financial Pros From a Financial Pro
• Optimize, Grow, Retain: The Power of Annual Client Reviews
• Train, Integrate, Retain: A Strategic Playbook for Adviser Onboardings
• Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

An adviser I know well had built what most would consider a dream practice. Twenty years of hard work had produced $200 million in AUM, a steady stream of referrals and a six-figure income.

But something was wrong.

He found himself arriving at the office before dawn to catch up on paperwork, staying late to return client calls and spending weekends reviewing portfolios. A family vacation meant checking emails poolside and taking "quick" client calls from the hotel room.

When his teenage daughter asked why he was always working, he realized he'd built a business that owned him — not the other way around.

This adviser's story isn't unique. Most successful financial advisers reach a similar crossroads: They've built thriving practices through hard work, client service and tactical excellence, but they find themselves trapped in the day-to-day operations that once fueled their growth.

The very skills that built their business now prevent them from scaling it.

How can advisers avoid this trap? By making the shift from "doer" to "visionary."

Understanding the doer trap

The adviser-as-doer mentality feels productive because you're constantly busy. You're in client meetings, reviewing portfolios and handling the thousand small decisions that keep a practice running. But this approach puts a dangerous ceiling on growth.

When you're the primary producer, your business can grow only as much as your personal capacity allows. More concerning, you become the single point of failure. Clients depend on you specifically, making it nearly impossible to step away without the practice suffering.

The tactical mindset focuses on execution: Completing this quarter's reviews, processing that rollover and preparing for next week's client appointments. While these tasks matter, they consume the mental bandwidth needed for strategic thinking about where your practice should be headed.

The transition from doer to visionary isn't about abandoning client service or delegating everything away. It's about fundamentally reimagining your role in the business you've created. Advisers who make this shift successfully tend to grow larger practices and build enduring enterprises that operate beyond their individual capacity.

Becoming the brand

The first step toward visionary leadership is recognizing that you're not just an adviser anymore; you're a brand. This shift requires intentional positioning that extends beyond your individual client relationships.

Start by articulating what your practice stands for beyond investment management. What specific value do you deliver that others don't? For some advisers, it's comprehensive tax planning integrated with wealth management. For others, it's specialized expertise serving a particular profession or life stage.

The key is defining this clearly enough so that clients, staff and referral sources can articulate it without you in the room.

Your brand should permeate every client touchpoint. This doesn't mean slapping your logo on everything; it means ensuring every interaction reflects your core values and distinctive approach.

When a client receives their quarterly report, does it communicate your unique methodology? When a prospect visits your website, do they immediately understand what makes your practice different?

Being the brand also means becoming visible in ways that extend beyond individual client relationships. This might include thought leadership through articles or speaking engagements, active participation in professional organizations or strategic involvement in your community.

The goal isn't self-promotion. It's establishing your practice as an institution rather than a collection of client accounts managed by one person.

Shifting from producer to CVO

The transition to "chief vision officer" requires delegating not just tasks but entire functions. This may feel uncomfortable for advisers who built their practices on personal service and attention to detail. The fear is understandable: What if the work isn't done to your standards? What if clients prefer working directly with you?

These concerns, while valid, reflect tactical thinking. Strategic thinking asks different questions:

• What functions must I be the only one to perform?
• Which tasks leverage my highest-value skills?
• Where should I invest my limited time and attention to drive the greatest long-term value?

Begin by conducting an honest audit of how you spend your time. Track every activity for two weeks, categorizing each task as strategic (only you can do it, and it directly impacts long-term success), important (needs to be done well, but others could handle it) or tactical (necessary but easily delegated).

In my experience, this exercise reveals that for most advisers, 60% to 70% of their time is spent on tasks that others could perform. The challenge isn't identifying these tasks; it's building the teams and systems to handle them effectively.

Building the infrastructure for vision

Visionary leadership requires infrastructure that supports strategic thinking rather than demanding constant tactical involvement. This infrastructure includes three critical components:

People. You need team members who can own entire functions rather than just complete assigned tasks. This means hiring for judgment and initiative, not only technical skills.

Your operations manager shouldn't just process paperwork; they should own the entire client onboarding experience and continuously improve it.

Your lead adviser shouldn't just conduct reviews; they should develop the review methodology and train others on it.

Process. Documentation becomes crucial as you step back from daily operations. The knowledge currently residing in your head needs to be captured in systems that others can follow.

This doesn't mean creating rigid bureaucracy; it means establishing frameworks that guide consistent decision-making even when you're not directly involved.

Technology. The right tech eliminates low-value activities rather than just digitizing them.

For example, your CRM should do more than just store client data. It should automate routine communications, trigger appropriate follow-ups and provide visibility into practice health without requiring your constant monitoring.

Leading from vision

With infrastructure in place, your role shifts to setting direction rather than managing execution. This means dedicating significant time to questions that most busy advisers never address:

• Where is our industry heading?
• What client needs will emerge in the next three to five years?
• How should our service model evolve to remain relevant?

Visionary leadership also means making fewer decisions but ensuring they're the right ones. Instead of approving every client communication, you establish brand standards that others implement. Rather than reviewing every portfolio personally, you set the investment philosophy and risk parameters that others execute within.

This doesn't mean becoming disconnected from operations. Effective vision requires staying close enough to ground truth that your strategic thinking remains realistic. The difference is you're gathering intelligence to inform strategy rather than diving into tactical execution.

Schedule regular time for strategic thinking, treating it as seriously as client meetings. Some advisers block one day each quarter for planning. Others reserve Friday afternoons for big-picture thinking. The specific approach matters less than the commitment to protecting this time from tactical intrusions.

Making the transition

The shift from tactician to visionary rarely happens overnight. Most successful transitions follow a gradual progression: First delegating purely administrative tasks, then client service activities, eventually handing off the majority of direct client management while maintaining key relationships.

Start with one area in which you're not the best resource. Perhaps it's portfolio rebalancing, where a skilled associate or outsourced investment team can provide support. Or maybe it's preparing for client reviews, where you can delegate to a paraplanner who can compile the information you analyze.

As you ease out of each function, resist the temptation to micromanage. Provide clear parameters and expectations, then trust your team to execute. When things don't meet your standards, improve the process rather than taking the work back.

The transition also requires mindset shifts. You need to measure success differently. Production metrics that once defined your value become less relevant than enterprise metrics: Client retention across the entire practice, team productivity, the scalability of your model and strategic positioning in your market.

The payoff

Advisers who successfully make this transition might discover something unexpected: They enjoy their work more. Instead of grinding through an endless list of tasks, they're building something that extends beyond themselves.

Client relationships deepen because interactions focus on big-picture planning rather than tactical execution. Team members thrive with increased responsibility and clearer growth paths.

Your practice becomes more valuable, both financially and personally. Buyers pay premiums for businesses that operate independently of the founder. More importantly, you've created something that can serve clients well beyond your personal involvement.

The journey from doer to visionary isn't about working less or caring less about clients. It's about multiplying your impact by building systems, teams and brands that extend your values and expertise far beyond what you could accomplish alone. That's the real opportunity in shifting from producer to chief vision officer.

Related Content

• To Build Client Relationships That Last, Embrace Simplicity
• Smart Business: How Community Engagement Can Help Fuel Growth
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The regulatory landscape for retirement investing shifted dramatically last August. A signed executive order opened the door for alternative assets — including cryptocurrency — to enter 401(k) plans.

For advisers, this creates both opportunity and obligation: Clients will ask about crypto, and you need a clear framework for responding.

What changed (and what didn't)

This change doesn't mandate that plans adopt cryptocurrency. Rather, it compels regulators at the Department of Labor, SEC and Treasury to revisit previous guidance that discouraged digital assets in retirement accounts.

Previously, the DOL issued guidance suggesting plan administrators exercise "extreme care" before adding cryptocurrency options, effectively discouraging adoption without outright prohibition. The August order rescinded these "extreme care" warnings, restoring a more neutral regulatory stance.

The absence of restrictive guidance doesn't mean the absence of fiduciary responsibility. Plan sponsors and advisers still must demonstrate prudent processes, ongoing monitoring and appropriate risk management.

The practical effect is that crypto in 401(k)s has moved from "highly discouraged" to "proceed carefully with proper safeguards."

New rulemaking expected early this year should provide clearer parameters on key issues such as tax concerns and digital assets permitted within retirement strategies, but advisers working with clients interested in this space need frameworks now to address uncertainties.

The client perspective: Benefits and risks

If you haven't already, you may begin hearing from clients who are curious about adding crypto to their retirement plan. Clients considering adding crypto to their account need balanced information about both the potential benefits and risks.

Here's a look at some of the potential benefits:

Diversification beyond traditional assets. Crypto behaves differently from stocks and bonds, potentially providing portfolio diversification benefits during certain market conditions.

Exposure to digital asset growth. Clients who believe in long-term blockchain adoption gain access to this emerging asset class within their retirement savings.

Access to broader alternative investments. The regulatory shift applies not just to crypto but potentially to private equity, real estate, infrastructure and other alternative assets previously difficult to include in 401(k) plans.

Despite these benefits, significant risks exist that demand clear communication:

Extreme volatility. Crypto prices can swing dramatically in short periods, creating substantial account value fluctuations that many retirement savers aren't prepared to handle.

Valuation and liquidity challenges. Unlike publicly traded securities with daily pricing, some crypto holdings lack consistent valuation methodologies and may not be easily redeemable.

Regulatory uncertainty. Rules continue to evolve, potentially affecting the tax treatment, custody requirements and permissibility of various digital assets.

Operational complexity. Custody, security, recordkeeping and reporting for crypto require specialized infrastructure that many plan providers don't currently offer.

Fiduciary liability. Plan sponsors and advisers must document their prudent process for adding, monitoring and potentially removing crypto options.

The education challenge is substantial. Your role includes helping clients understand not just what crypto is, but whether it belongs in their specific retirement strategy.

Clarifying crypto through education

Perhaps the biggest challenge is that many clients who express interest in crypto lack a fundamental understanding of what they're actually buying, how it's valued or what risks they're taking.

Some participants approach crypto as a lottery ticket, hoping for life-changing returns without appreciating the equally life-changing potential for losses.

Others extrapolate recent performance into the future, assuming past gains will continue indefinitely. Still others hear about crypto from friends, family or media without understanding how it differs from traditional retirement investments.

Consider creating a client education framework, developing or sourcing educational materials that explain crypto basics, risk characteristics and appropriate use within retirement portfolios. Your client education could address:

Basic mechanics. What crypto is, how blockchain technology works and why digital assets might (or might not) have long-term value.

Risk characteristics. The potential for substantial losses, not just gains, and how crypto volatility compares to traditional retirement assets.

Portfolio context. Why allocation limits matter and how crypto fits within diversified retirement strategies.

Behavioral pitfalls. The dangers of emotional trading, over-concentration in speculative assets and investment decisions driven by the fear of missing out (FOMO).

Moving forward carefully

Cryptocurrency in 401(k)s represents a significant shift in retirement investing. For some clients and plans, carefully implemented crypto access provides valuable portfolio diversification and meets legitimate participant interest in emerging assets.

For others, the risks and complexities outweigh potential benefits.

Your role as an adviser is to help clients navigate this decision thoughtfully, implementing appropriate safeguards when crypto makes sense and explaining why it doesn't when circumstances don't support it.

Start with small pilots if you're exploring this space. Test infrastructure with a limited number of participants before doing a broader rollout. Gather feedback about education effectiveness and operational friction points. Document your process meticulously, including risk assessments, client communications, education efforts and the rationale behind investment decisions.

The evolution of retirement investing is underway. Advisers who develop clear frameworks for addressing cryptocurrency questions — whether that means carefully implementing access or explaining why they're waiting for greater regulatory clarity — will serve clients better than those who simply ignore the topic or react defensively.

The key is approaching crypto in 401(k)s the same way you approach any retirement investment option: With due diligence, appropriate risk management, clear client communication and a well-documented fiduciary process.

Related Content

• Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)
• Investment Management: A Return to Simplicity
• The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In the rapidly evolving world of business, simplicity often gets overshadowed by the allure of the latest technology and artificial intelligence (AI) advancements.

While these tools offer incredible potential, they can also introduce complexity that distracts from the core mission — providing exceptional service to your team and your clients.

To truly scale your business, embracing simplicity is key. That is what will allow you to distinguish yourself in a market that becomes more automated.

Stay focused on essentials

Scaling a business is akin to building a house. Without a solid foundation, even the most glamorous architecture will crumble. In business, this foundation consists of a few core principles that, if consistently applied, yield great success:

Know what you do well. Being able to communicate what you do well, specifically when it comes to helping people enjoy a successful retirement, is key. Often, we take for granted how good we are at helping people plan their retirement.

Guiding clients in the areas of income, taxes, estate planning and health care is a big differentiator from the person who helps only with investments.

Streamline workflows. Audit your operational processes to eliminate redundancies. It's amazing how we can complicate things through the years. We often add to, but very seldom subtract from, our processes.

Embrace technology, but don't think it's the magic solution

Technology is a powerful ally in the quest for growth, but it should be used strategically.

Employ selective automation. Use technology to automate repetitive, non-client-facing processes like data entry or scheduling, freeing up resources for more high-touch activities.

Leverage AI for efficiency. If you aren't using AI, you're falling behind — because your competitors are using it. AI can enhance your ability to analyze data, predict client needs and personalize interactions at scale.

Just remember that it should complement, not replace, the human touch that builds trust and loyalty.

Use data-driven insights. Leverage analytics tools to understand client behaviors and preferences. These insights inform strategies that enhance client interaction without requiring you to overhaul your existing system.

The impact of personal touches

In today's digital world, the human connection can be your most powerful differentiator. Personalized, unautomated interactions show clients they are truly valued.

Send handwritten notes. A simple, heartfelt note can convey authenticity and appreciation, qualities that mass-produced emails often lack.

Make phone calls. Taking the time to personally check in on a client conveys care and commitment. In a time when most interactions are digital, a voice call can strengthen relationships.

Cultivate meaningful client relationships

Building and nurturing relationships is at the heart of business success. A relationship-first approach not only retains clients but turns them into advocates.

Do fun things together. At Advisors Excel, our biggest investment, outside of staff, is in creating meaningful experiences with our adviser community.

Are you doing the same with your clients? Think through how you can create a connected community of fans.

Elevate your impact with one-to-many communication. While personal touches and regular check-ins are vital to success, you can save yourself a lot of work by finding ways to communicate to a large group of your clients at one time.

Regular events like "Wine and Wisdom" or "Markets and Mimosas" are fun ways to bring clients together and communicate en masse.

The power of simplicity

Scaling a business doesn't require adopting every new piece of technology or being everywhere all at once. It's about doing a few things exceptionally well and maintaining a personal connection with those you serve.

As we embrace new opportunities in 2026, let's remember that simplicity, combined with a commitment to personal touch, will set the foundation for scalable growth and enduring client relationships.

By focusing on what truly matters, relationships and taking the time to show genuine appreciation, you will continue to succeed in an ever-changing world.

Results from the use of these strategies are no guarantee of your future success.

Cody Foster is co-founder of Advisors Excel in Topeka, Kansas. Advisors Excel has a mission to help "good financial advisors become great business owners so they can help people enjoy an amazing retirement." Since its founding in 2005, the company has grown from the three original founders to over 1,000 employees today, making them one of the largest employers in Topeka.

Related Content

• Smart Business: How Community Engagement Can Help Fuel Growth
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Financial advisers are feeling a shift in real time. Clients with growing wealth have increasingly nuanced needs, AI is reshaping service expectations, and competition among credentialed advisers is intensifying.

This article speaks directly to advisers who want to stay ahead of that curve. The question is no longer whether specialization is coming — it's how advisers can deliver it and communicate it in a way that resonates with today's clients.

While many advisers still operate as generalists, the complexity of wealthy clients' needs, combined with consumer demand and technological change, suggests the future of financial planning belongs to specialized experts.

The profession is maturing

The financial services profession is going through a significant maturation. CFP Board's public awareness campaign and resulting growth have helped create a well-recognized, credentialed baseline for financial planners and those they serve.

The American College of Financial Services' Chartered Financial Consultant® (ChFC®) provides the same education (plus an additional course) without the high-stakes exam or bachelor's degree requirement, but it isn't as well known to the general public.

Together, these credentials point to a potential future where half (or more) of advisers will hold one or both, raising the proficiency floor while also making it harder for advisers to stand out on credentials alone.

Beyond the expertise of a generalist

That level of baseline education is incredibly valuable to the majority of American families. Yet advisers tend to desire clients with wealth, generally $1 million or more in investable assets, and with wealth, comes complexity that often stretches beyond what a generalist can comfortably navigate.

This is where advisers typically turn to their centers of influence for guidance, but many still end up wading through complexity on their own.

Early in my career, I remember reading horror stories that resulted not from bad intentions but from avoidable knowledge gaps. Ed Slott and Company's events were filled with examples: distribution errors that triggered unnecessary taxes, paperwork mistakes that derailed wealth transfer plans and timing missteps that couldn't be undone.

Not a single one dealt with a poorly allocated portfolio. They were all issues rooted in technical details.

Navigating this kind of complexity doesn't always require more time — it requires knowing what to do when, understanding the downstream implications and having the confidence to anticipate problems before they occur.

That's what most consumers in our recent research with Endeavor Business Intelligence say they want. And it raises the central question for advisers: How do we deliver it consistently and credibly?

Specialization is gaining momentum

A segment of the profession is already embracing specialization. Many thought leaders, and a growing number of advisers, talk about the value of niche expertise, the discipline it requires and the difference it makes in serving clients with highly specific needs.

But there are still far too many generalist advisers positioning themselves as specialists. From where I sit, raising consumer awareness and strengthening education is one of the most effective paths forward.

Specialists do exist in financial planning; consumers simply don't yet have an easy way to identify them.

Once consumers understand that financial planning is evolving, in a way similar to other professions that developed deep specialties over time, they will quickly recognize the value of differentiated expertise, even if they don't yet know how to spot it in a bio or on a business card.

That broader understanding is still likely a decade away. But AI could accelerate the shift by absorbing more of the generalized advice that younger or less complex clients typically need.

That would increasingly force advisers to distinguish themselves not by the basics, but by the depth of their technical knowledge and their ability to guide behavior through uncertainty.

How advisers can deliver specialization: Starting now

Consumers are already looking for advisers who can help them with very specific needs. Advisers who lean into this shift early will have a strategic advantage.

Here are steps advisers can take now to signal their specialization and deliver deeper expertise:

1. Define the complexity you want to serve

Rather than trying to "specialize in everything," advisers should identify the intersection of:

• The client problems they are best equipped to solve
• The scenarios they encounter frequently
• The areas where they already have deeper education or interest

Clarity here doesn't limit growth — it directs it.

2. Strengthen the technical foundation

Specialization must be backed by education. Programs such as the ChFC®, CLU®, RICP® or WMCP® provide structured paths toward deep expertise in areas ranging from retirement income to insurance to portfolio construction.

This kind of training goes beyond high-level guidance and equips advisers to handle complex client scenarios confidently.

3. Formalize a network of experts

No specialist operates alone. Advisers should develop a consistent, vetted ecosystem of tax professionals, estate attorneys and insurance experts.

Making these relationships visible to clients reinforces credibility and signals that the adviser is committed to delivering comprehensive expertise, not just general advice.

4. Communicate differentiation clearly

Clients cannot hire what they cannot identify. Advisers should:

• Update digital bios to reflect precise areas of expertise
• Create brief educational content that showcases specialty knowledge
• Highlight specific client scenarios they solve (without revealing identities)

Consumers increasingly look for advisers who "speak their language," and specificity communicates confidence.

5. Use AI to elevate, not replace, expertise

Advisers should embrace AI for what it does best: streamline analysis, automate routine tasks and model scenarios quickly.

That frees up time for advisers to focus on the high-value work only humans can do, interpreting goals, coaching behavior and navigating complexity.

AI will not diminish the role of advisers. It will amplify the advantage of those with deep expertise.

The path forward for advisers

Consumers already want specialists. The industry is moving in that direction. AI will only accelerate the shift.

Advisers who embrace specialization and make it visible, credible and consistent will be better positioned to serve the complex needs of wealthier clients, differentiate themselves in a crowded marketplace and build stronger, longer-lasting relationships.

The advisers who thrive in the decade ahead will not be those who try to be everything to everyone.

They will be the ones who confidently step into the areas where they deliver exceptional value and communicate that specialization clearly to the clients who need it most.

Related Content

• Smart Business: How Community Engagement Can Help Fuel Growth
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Divorce and widowhood rank among life's most stressful transitions, often thrusting individuals into navigating complex financial decisions — asset division, budgeting on a single income and long-term retirement planning — while grappling with profound emotional upheaval.

Women, in particular, confront systemic financial headwinds that compound these challenges. The gender pay gap remains significant, with women working full time earning only about 81% to 84% of what men make.

Coupled with caregiving responsibilities and more career interruptions than men, this disparity can impact their future financial landscape.

As a financial adviser, your ability to bridge this gap during one of life's most difficult transitions can be transformative.

By approaching conversations with empathy and compassion, you can support women and help them have clarity, confidence and control of their financial futures.

Follow their lead

The first interaction in helping those facing life transitions should be to ask: How can I help you?

The emotional toll of divorce or widowhood is immense, and even small financial decisions can feel overwhelming or deeply personal.

For many, shifting accounts, selling assets or restructuring finances can feel like letting go of cherished memories.

Advisers must approach every interaction with patience, empathy and sensitivity, understanding that progress will happen in steps, and that even the smallest transitions deserve care and compassion.

It's important to take your time and encourage clients to do the same. By seeking your guidance, they've already taken a critical first step toward regaining control of their finances.

Moving deliberately and thoughtfully ensures they're approaching decisions from a place of clarity, rather than in the immediate emotional haze following the loss of a spouse.

Advising clients to proceed at a manageable pace not only supports better financial outcomes, but also reinforces their confidence and sense of control during this challenging transition.

Most clients in this position come in not knowing exactly what they need, but they usually have immediate pain points. Your ability to listen actively without overwhelming them becomes the foundation for trust.

After the initial meeting, follow-up is essential — but so is respecting their boundaries. Some clients prefer frequent touchpoints. Others need space.

A typical engagement pattern might include:

• Monthly check-ins for the first three to six months (email, phone or in person)
• Quarterly meetings in year one
• Semiannual planning reviews once stability is achieved

Encourage clients to take the time they need. There's rarely a decision so urgent that it can't wait a few weeks. The biggest gift you can offer is presence without pressure.

Building financial clarity and confidence

Everyone experiences major life transitions, and financial literacy levels can vary widely. It's critical not to assume prior knowledge — start from the basics, but present information in a way that feels empowering rather than condescending.

The goal is to frame education as a tool for independence and confidence during uncertain times.

For example, a divorcée married for more than 10 years might not realize she could be eligible for Social Security benefits based on her ex-spouse's record, even if she never worked outside the home.

Similarly, a widow might not be aware that claiming survivor benefits first could allow her own benefit to grow before switching later, creating a more strategic long-term outcome.

By addressing these often-overlooked details, financial advisers can not only help clients uncover hidden opportunities but also guide them toward decisions that bring stability, security and peace of mind during some of life's most difficult transitions.

One of the most critical components to establish early in these conversations is to create a net worth statement. It provides a starting point and clear baseline to begin assessing liquidity. In establishing liquidity, ask these questions:

• What resources are immediately available?
• What expenses are recurring?
• Which accounts are accessible now, and which might take time to settle?

A net worth statement also highlights initial risks and opportunities, whether it's debt that needs to be addressed, insurance gaps or investable assets.

Most important, it restores a sense of control; seeing finances organized on paper helps clients feel grounded and empowered.

Be the connector

As the client's adviser, you serve as a steady anchor, someone they can depend on for clarity, guidance and reassurance in the midst of uncertainty. But while your role is central, you should not be their only source of support.

True financial stability after divorce or widowhood requires a team-based approach.

• Coordinating with attorneys ensures legal protections and updated estate plans are in place
• CPAs provide critical tax guidance
• Estate planners help safeguard long-term wishes
• Social Security offices clarify benefit options

By bringing these perspectives together, you create an integrated plan that not only addresses immediate financial concerns but also positions your client for long-term security and peace of mind.

Especially in cases involving business ownership, complex estate issues or blended families, looping in a qualified legal team early can save your client money and time.

Don't overlook the emotional network. Include adult children or trusted family members in meetings if your client wants support. Being inclusive (with their consent) reinforces your role as a partner, not a gatekeeper.

Develop a checklist for your team

The widowhood process, in particular, involves an enormous list of to-dos. A comprehensive checklist can be a critical resource, as it shifts the emotional weight off their shoulders and gives them permission to breathe knowing there's a structure in place.

Some key components can include:

Administrative actions

• Work with the funeral home on arrangements
• Notify the employer of the deceased spouse
• Obtain at least 12 copies of the death certificate
• Contact the Social Security Administration (SSA) and Medicare (if not already alerted)
• Notify the financial team: CPA, attorney, executor

Asset documentation

• Organize all wills, trusts, deeds and account information
• Retrieve log-in credentials and digital assets
• Obtain the most recent two to three years of tax returns
• Compile a list of financial accounts, other assets such as real estate and business interests and liabilities to construct a comprehensive net worth statement

Account access and transition

• Open a new checking account in the client's name
• Transfer ownership of investment and bank accounts
• Cancel or reissue credit cards
• Update beneficiary designations

Social Security and government benefits

• Apply for survivor or divorced spousal Social Security benefits if appropriate
• Visit SSA offices in person when possible to ensure accuracy
• Contact the Department of Veterans Affairs or the U.S. Office of Personnel Management (OPM), if applicable

Legal and estate planning

• Review and revise estate documents: will, trust, power of attorney, living will
• File IRS Form 706 (estate tax return), if required or beneficial to elect portability of the spouse's estate exclusion

Credit and security

• Contact credit bureaus (Equifax, Experian and TransUnion) and mark a deceased spouse's file appropriately
• Cancel subscriptions, memberships and marketing lists

To help make this process more manageable, we've created a detailed, step-by-step checklist designed specifically for individuals navigating divorce or widowhood. You can access and download the divorce resource here, and the widowhood resource here, and use it as a practical guide to stay organized, ease decision-making and move forward with greater confidence.

As financial advisers, our job extends far beyond investment management in these moments. We become educators, counselors, advocates and, most importantly, active listeners.

Clients in transition don't need the cleverest strategy, but to be seen, heard, respected and have a sense of control. It's not just about numbers, but rebuilding a sense of security from the ground up.

Elizabeth R. Schaefer joined Johnson Investment Counsel in 2018. She is a Portfolio Manager and holds the Certified Investment Management Analyst (CIMA®) designation. Prior to joining the firm, Elizabeth was the Director of Sales & Client Service for Riazzi Asset Management. Elizabeth is a member of the Investment Management Consultants Association® and an active member of several charitable organizations, including St. Charles Parish, Archbishop Alter High School and United States Tennis Association.

Joseph P. White joined Johnson Investment Counsel in 2018 and serves as a Portfolio Manager. He holds the Chartered Financial Analyst® (CFA®) designation, CERTIFIED FINANCIAL PLANNER™ (CFP®) certification, the Certified Divorce Finance Analyst® designation and a Master's Degree in Accountancy from Wright State University. Joe works directly with high-net-worth families and individuals in providing integrated wealth management services. His focus includes developing complex, actionable solutions that blend portfolio management, retirement planning, tax planning, charitable planning and estate planning to assist clients in accomplishing their objectives.

Related Content

• Why Women May Want to Work Longer: It's About More Than Money
• A Financial Guide to Gray Divorce for Women
• How to Navigate Your Finances After Losing Your Spouse: Thoughts From a Financial Planner
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• New to Financial Advising? Nine Key Ways to Build Trust With Your Clients

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As a financial professional, you build your business on trust. Clients seek guidance on their most important life decisions, and that relationship is founded on more than just numbers. It's about connection.

What if you could deepen that connection, expand your reach and strengthen your team while making a tangible difference in your community?

Strategic community engagement offers a powerful way to do that. It's about aligning your firm's values with meaningful action.

The benefits go far beyond a simple tax deduction. When done right, giving back can boost brand recognition, drive referrals and foster a company culture that top talent wants to be a part of.

Let's explore how real advisers are turning community spirit into business growth.

Build your brand by building your community

In a crowded marketplace, a strong brand helps you stand out. Community involvement is an authentic way to show your firm's values.

Instead of just telling people about your causes, demonstrate them through action, creating a reputation that marketing dollars can't buy.

Just ask Rob Russell of Russell Total Wealth and Wellness. His Dayton, Ohio, firm decided to move beyond sporadic donations and focus its philanthropic efforts on four core pillars:

• Supporting military veterans and first responders
• Mentoring local youth
• Improving community health care
• Boosting Dayton's business reputation

By becoming a lead sponsor for such organizations as Big Brothers Big Sisters, the Russell name became highly visible at local events.

This strategic approach didn't just feel good; it helped elevate the firm's profile and showed the community who they were.

Turn authentic connections into client relationships

Many advisers find their best clients through referrals, which are built on trust. Community engagement is a natural way to build that trust on a wider scale.

When potential clients see you and your team volunteering or passionately supporting a local cause, they see you as more than just an adviser. They see you as a neighbor.

This is exactly what the team at Russell Total Wealth and Wellness experienced. The firm's deep community involvement led to referrals, including a client who likely would have never attended a traditional seminar. These clients were drawn to the firm's genuine commitment to the community.

David Brooks of Retire SMART found a similar path to connection, with a different method. His calls strategy involves re-engaging past prospects with timely, relevant information.

By reaching out with a thoughtful message tied to current events, he turns a cold lead into a warm conversation.

This approach, focused on personal connections, helped bring in a substantial number of assets in a single year. It proves that focusing on people first pays off.

Strengthen your culture and engage your team

A strong company culture is essential for attracting and retaining great employees. People want to work for a company with a purpose beyond the bottom line.

Involving your team in community initiatives can increase morale, foster teamwork and create a shared sense of pride.

Chad Slagle of Slagle Financial saw his employees become more engaged — and more grateful to work for a company with heart — by shifting to a service-oriented mission. Spurred to action by the death of a local police officer who left behind a wife and daughter, Chad founded Teaming Up for Good, his firm's philanthropic wing.

The initiative, which supports first responders, the military and children, gave his team a powerful cause to rally around. It transformed their workplace into a community of people making a difference together.

Create a legacy of lasting impact

While the business benefits are clear, the most profound outcome of community engagement is the positive change you create. By addressing local needs, you can help build a legacy that lasts.

Slagle's support for the Tyler Timmins Memorial Foundation, created in honor of the fallen officer, shows how a firm can help heal and strengthen its community in a time of need.

Similarly, Josh Bradley of Capital City Financial Partners hosted educational events with FBI agents to teach clients about elder fraud and cybersecurity. By providing this vital service, his firm became a trusted advocate for its community's most vulnerable members.

Actionable steps to get started

Ready to harness the power of giving? Here's how you can start:

Define your mission. Identify causes that align with your firm's values and resonate with your team. What are you passionate about?

Plan with purpose. Start small. You don't need a massive budget to make a difference. Choose one or two initiatives, and do them well.

Involve your team. Ask your employees what causes they value. Giving them a voice will increase buy-in and engagement.

Partner for impact: Collaborate with local nonprofits or community organizations. They have the expertise and infrastructure to help you make a real impact.

Share your story. Let your clients and community know what you're doing. Share updates in your newsletter, on social media or at client events. This inspires others and reinforces your brand's commitment.

Ultimately, integrating community engagement into your business model is a win-win. You'll build a stronger business, a more engaged team and a better community. It's a powerful reminder that doing good truly is good for business.

Related Content

• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Loosening the Reins in Philanthropy Could Mean Better Outcomes
• Developing a Charitable Giving Strategy: Where to Begin
• Integrity, Generosity and Wealth: A Faith-Based Approach to Business

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The 2020s have been a transformative time for advisers. After the COVID-19 pandemic, recent years introduced an unprecedented explosion of new products, platforms, changing demographics and rising expectations from time-constrained, tech-savvy clients.

Despite these transformations, the core of successful financial advising remains unchanged: the human touch.

In my daily interactions with advisers, the overwhelming viewpoint is: In 2026 and beyond, advisers must harness the power of technology to enhance the personal, authentic connections that are the cornerstone of their role.

Advising — it runs in the family

As shown by our research, the financial advisory industry is no longer simply managing investments; it provides comprehensive financial guidance and support.

However, who receives that support and what they expect from their adviser is changing rapidly.

We're in the beginning stages of the biggest wealth transfer ever. This means new clients who differ widely from their parents and spouses in terms of risk tolerance and communication preferences.

Inheritors might not settle for simply working with their spouses' or parents' advisers. They might look elsewhere to assess their options, and a key differentiator is empathy.

This is a significant opportunity for advisers. They must:

• Adapt their human touch to better serve a younger and more diverse clientele
• Develop skills to understand and address the unique financial needs and concerns of these clients, ensuring that they feel supported and heard

We're already seeing advisers adjust their practices to account for future transitions through family-based planning. Engaging with an entire family to workshop solutions ensures all members approve of the financial strategy, building trust and fostering long-term relationships.

The most successful advisers in 2026 will be those who prioritize coaching and planning with families over transactional services to counteract the increasing complexity of clients' financial lives and the need for personalized, holistic advice.

Humans lead, and technology must follow

Technology remains a fundamental enabler of success for advisers, and the pace of change is accelerating. Great advisers use sophisticated tools to manage portfolios, account transitions and tax-loss harvesting.

As advisers have updated their practices to account for increased demand for personalized counsel, technology will evolve alongside them.

Generative AI is a prime example. Advisers can use generative AI to take notes and recap calls, allowing them to worry less about capturing next steps and instead focus on building rapport with clients.

They can also use generative AI to summarize market trends and advice quickly based on the acumen level of clients and how they like to receive information. In both cases, advancements in technology help advisers focus on the human side of advising.

Extreme investment product proliferation has led to an overwhelming number of options for advisers and their clients, and has indirectly influenced the subsequent rise of separately managed accounts (SMAs).

While SMAs allow clients to receive tailored solutions, it complicates an adviser's bird's-eye view of their entire portfolios.

As more funds become available and clients increasingly expect personalized and flexible support, advisers should leverage AI to examine which will be true value-adds.

For example, advisers should analyze what they're purchasing to confirm products are "true to label" and without "hidden" drawbacks, such as having a high expense ratio relative to the peer group average.

Though all investing is subject to risk, this extra analysis can help advisers feel confident they're giving their clients the best chance for investment success.

Advisers can also leverage tools and support from such asset managers as Vanguard to oversee ongoing portfolio management. Asset managers can help advisers achieve scalability with portfolio construction tools that can run on-demand diagnostics of portfolio risk and return drivers to create custom reports and action plans for clients.

By using AI and other tools to weed through new offerings and develop scalable solutions, advisers can more quickly make decisions, allowing them to spend more time on strategic planning, relationship management and prospecting, and less on administrative tasks.

The talent shortage is a 'right now' problem

McKinsey estimates that, by 2034, the financial services industry will face a shortage of about 100,000 advisers. As with the generational wealth transfer, this is a "right now" situation.

To account for and address shortages, firms, banks and home offices alike must rethink their practice management — both from a talent and a tool standpoint.

For example, we work with advisers who are experimenting with teaming to maximize resources and embrace efficiencies, while other advisers lean on diversified, managed model portfolios to free up time to take on new clients.

To attract and retain top talent, institutions must provide autonomy to advisers where possible. In this era of rapid innovation, it will be important to offer the freedom to choose from a broader universe of products.

Scalable, portfolio-based solutions can help advisers make their role more manageable and appealing.

Institutions can also offer training programs that focus on both technical skills and soft skills, such as communication and empathy, to help advisers connect with new prospects and existing clients.

The reality is that, even in the face of a talent shortage, expectations and demand aren't slowing down. The good news is that neither will the evolution of technology. By leaning into technology to streamline tasks and evolving practice management, advisers can stay ahead.

Conclusion

Next year will be defined by the seamless integration of innovative technology and the irreplaceable human touch.

By leveraging new technology to better provide coaching and planning and address the talent shortage, advisers can thrive in an increasingly competitive market.

Related Content

• Investment Management: A Return to Simplicity
• The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills Matter
• I'm a Personal Finance Expert: Here's the Truth About Using AI to Plan Your Retirement
• How AI and Human Expertise Are Changing Wealth-Management Services
• Sorry, But AI Alone Doesn't Cut It for Financial Planning

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Today's clients no longer want piecemeal financial help. They want a family office experience, even if they're not ultra-wealthy.

That means receiving investment guidance, tax filing and planning and estate planning all in one place. The old model of an adviser building a 60/40 portfolio or a CPA filing a return once a year no longer meets expectations.

Clients increasingly expect integrated investment, tax and estate planning support as part of holistic wealth management.

The technology options of the past — single-purpose, siloed solutions — do not deliver on this need. Tax software that doesn't integrate with financial plans or estate planning tools that operate in isolation only add friction and duplication of work.

Investments in tech and talent

Forward-thinking wealth management firms are investing in talent and technology to meet these demands. At the same time, CPAs are reshaping their roles by becoming financial advisers, affiliating tightly with advisers or being acquired outright.

While the largest CPA-affiliated wealth firms now oversee hundreds of billions in assets under management (AUM), the more telling trend is the rapid growth of integrated advisory models in which tax and wealth services are converging to meet client demand for year-round guidance.

Estate planning is evolving in the same way. Once a service reserved for ultra-high-net-worth families, estate planning access has been democratized by platforms such as Trust & Will, Vanilla and Wealth.com, which are using technology to rapidly build and update planning frameworks and documents.

Advisers understand the stakes: If clients need to go elsewhere for estate planning, the entire relationship is at risk.

With trillions set to transfer between generations over the coming decades, firms that integrate estate planning will be positioned to retain both assets and trust.

What advisers can do to keep up

For advisers, this shift means rethinking what "comprehensive" really looks like.

It's no longer enough to simply add services; data integration between these offerings is required to deliver truly holistic guidance.

Advisory firms need to start by mapping where their clients' financial, tax and estate data currently reside and then identify and address the friction points between systems and providers.

Building integrations between technology solutions enables important data sharing between tools and teams by allowing information to flow seamlessly between investment, tax and estate planning systems.

In fact, many advisers are embedding tax and estate planning platforms directly into onboarding workflows and client portals so that they become part of ongoing financial advisory conversations.

Even firms not equipped to hire in-house tax professionals and estate planners can integrate with these solutions to deliver tax and estate services that feel frictionless to clients.

Tech requirements

To truly deliver on the family office model, the adviser technology stack of the future must:

• Enable seamless data flow between financial plans, tax returns and estate documents
• Facilitate collaboration between clients, financial advisers, tax professionals and estate planners in one integrated environment
• Provide proactive insights, using automation and AI, to anticipate client needs and optimize decisions in real time

The most innovative firms have already recognized this shift and are moving quickly to make it real.

They are investing in building technology infrastructure that allows shared data without sacrificing privacy and building teams in which tax, legal and financial professionals work in coordination with one another.

Indeed, as technology and talent continue to converge, the family office experience will no longer be a privilege of the ultra-wealthy; it will become the new standard for comprehensive wealth management.

Related Content

• Ten Ways Family Offices Can Build Resilience in a Volatile World
• How Women of Wealth Are Creating a New Model of Giving Through Family Offices
• The Four Key Pillars of Wealth Management of the Future
• How Financial Advisers Can Turn Compliance Into a Competitive Advantage
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

After the early steps taken to lower rates from the Fed and historically low spreads in many sectors of public credit, traditional fixed income yields are near the lows of the last few years, prompting advisers to turn to private credit as they look for more durable income solutions.

Asset-based and real estate lending, in particular, offer a timely entry point, providing elevated yields, short to intermediate durations and strong collateral backing.

Over the next 12 to 24 months, these strategies offer a window of opportunity to access income streams supported by structural protections while helping to fill financing gaps left by banks and other traditional lenders.

For income-oriented portfolios, they offer a compelling way to add both resilience and long-term value.

A tangible and timely opportunity

Real estate bridge lending is one area where the opportunity is both tangible and timely. For example, a first-lien loan on an industrial property in a key southeastern U.S. market was recently secured by a 10-acre site with shipping and logistics infrastructure, generating strong in-place cash flow and supported by long-term demand.

The loan carried a conservative loan-to-value ratio and was structured with a fixed-rate coupon and regular interest payments over a short duration.

These types of short-term, income-generating loans, typically backed by income-producing assets, can offer attractive yields, downside protection and the flexibility to recycle capital quickly.

For high-net-worth or income-focused clients, they offer a way to diversify and enhance portfolio durability.

Downside protection and attractive yields

Asset-based lending (ABL) presents a similarly compelling case. Demand from small and midsize businesses remains strong, especially for working capital, equipment purchases and inventory financing.

These loans are typically secured by tangible assets, offering meaningful downside protection and attractive yields.

The ABL market spans a wide range of sectors, including examples such as transportation, equipment leasing and structured risk transfers (SRTs), just to name a few — each with distinct risk-return profiles.

Transactions in these spaces can offer meaningful diversification across borrowers and sectors, which is especially attractive for clients seeking steady income with strong risk reward.

Together, these areas highlight a key point: In private credit, return is driven not only by yield, but by structure.

Both ABL and real estate lending are backed by tangible assets and offer protections that can help mitigate downside risk.

For clients who are wary of duration risk in traditional fixed income or are looking to reduce exposure to public market volatility, these strategies provide targeted, income-producing alternatives.

A rich set of opportunities

This is especially relevant today. Even as interest rates begin to ease, tighter credit conditions and stricter bank capital requirements have limited the flow of traditional financing, including in sectors vital to economic growth like real estate and small business finance.

The securitization market also remains constrained, making it harder for certain borrowers to access capital.

As a result, private credit managers with origination capabilities and structuring expertise are stepping into the gap, creating a rich set of opportunities for investors who are prepared to act.

For advisers, the key is to look beyond traditional corporate direct lending and consider the full spectrum of private credit.

That means identifying managers with access to differentiated deal flow and the ability to source and structure investments in sectors where capital is both scarce and valuable.

When grounded in discipline and strong underwriting, asset-based and real estate lending, in particular, can help advisers construct income portfolios that are more resilient to today's risks and more responsive to tomorrow's opportunities.

Related Content

• Private Markets for Main Street: What Financial Advisers' Clients Need to Know
• If You're Ignoring Private Markets, You're Missing Most of the Action
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Financial Advisers Can Build Retiring Clients' Confidence
• The Four Key Pillars of Wealth Management of the Future

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

As Giving Season fast approaches, advisers are gearing up for familiar conversations around philanthropy, taxes and year-end planning.

Many now include donor-advised funds (DAFs), one of the most flexible and tax-efficient charitable planning tools. DAFs allow donors to contribute assets, secure an immediate deduction, invest contributions tax-free and recommend grants over time.

Beyond their simplicity, DAFs offer advisers a powerful toolkit for navigating complex financial situations. They become especially valuable during periods of appreciated asset growth and as part of long-term wealth and estate planning.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

For advisers, Giving Season provides an ideal opportunity to surface these benefits and help clients approach generosity with intention and tax efficiency.

Below are three tax-smart strategies — plus several year-end considerations — that can help maximize both philanthropic impact and client financial outcomes.

1. Take tax deductions in the years when they matter most

A core benefit of a DAF is the ability to decouple when clients receive a tax deduction from when they ultimately choose the charities they want to support.

This is especially effective for individuals with fluctuating income — such as business owners, executives with equity compensation or anyone realizing a sizable gain from selling a home or business.

In high-income years, clients can "front-load" charitable contributions into a DAF and capture the full deduction immediately, even if they're not ready to commit to specific organizations.

For example, a client might contribute $100,000 in a high-income year but plan to grant only $20,000 right away.

A DAF lets them take the full deduction now, invest the remaining balance tax-free and take time to research charities that align with their values and giving philosophy.

This approach not only smooths charitable planning during complex financial years but also allows clients to make more intentional, well-researched granting decisions — without sacrificing the tax advantages of acting promptly.

2. Reduce capital gains exposure by donating appreciated assets

One of the most powerful ways clients can support charitable causes — and improve tax efficiency — is by donating long-term appreciated assets instead of cash.

By contributing long-term appreciated assets, clients capture the full appreciated value without triggering capital gains and can deduct the asset's fair market value, boosting the overall tax benefit.

Charities often lack the infrastructure to process complex asset gifts efficiently. DAFs, however, are designed to handle appreciated securities and even illiquid assets such as private company stock, cryptocurrency or real estate.

That means advisers can help clients unlock tax savings while giving nonprofits the ultimate benefit of a simple cash grant.

For clients with sizable estates or multigenerational legacy goals, DAFs can also help manage estate tax exposure. Assets contributed to a DAF are removed from the donor's taxable estate, offering a philanthropic tool that doubles as a long-term planning mechanism.

3. Use 'bunching' to maximize deductions under higher standard deduction thresholds

With today's higher standard deduction thresholds, many taxpayers no longer itemize annually. DAFs create an effective workaround through "bunching" — consolidating multiple years of charitable contributions into a single year.

For example, a client might contribute two or three years' worth of donations to their DAF in one tax year, itemize that year to capture a larger deduction and then take the standard deduction in subsequent years while continuing to make grants from the DAF.

For clients on the cusp of itemizing, this approach can generate meaningful tax savings without altering their charitable goals.

Here are some additional year-end DAF strategies advisers should consider:

Align giving with strategic goals, not just year-end deadlines. DAFs also give clients flexibility, whether through recurring grants, setting aside capital for future needs or aligning giving with long-term goals.

Interested in more information for financial professionals? Sign up for Kiplinger's new twice-monthly free newsletter, Adviser Angle.

Match contributions to income volatility. For clients with highly variable earnings, DAF contributions can be "dialed up" in high-income years and "dialed down" during leaner ones, smoothing tax exposure while allowing giving to remain consistent.

Incorporate legacy planning. Encouraging clients to discuss the charitable legacy they hope to leave — whether through successor advisers on a DAF or by making the DAF a beneficiary in their estate plan — can deepen relationships and strengthen multigenerational planning conversations.

The bottom line for advisers this Giving Season

As philanthropy becomes a more integral part of wealth planning, advisers have a meaningful opportunity to expand the conversation beyond generosity alone.

One of the often-underappreciated advantages of a DAF is that advisers can continue managing the assets contributed to the account, investing them for potential tax-free growth while maintaining their advisory role. This strengthens the client relationship and ensures charitable dollars can grow before being granted.

Combined with the tax efficiency, flexibility and long-term planning benefits DAFs already provide, this investment management capability positions them as a powerful tool — especially during Giving Season, when clients are looking to make an impact and optimize their year-end financial strategy.

Related Content

• What the 2026 Tax Landscape Means for Advisers, From a Financial Planner
• Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• It's Not Too Late for Wealth Advisers to Participate in the Silver Tsunami

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Compliance should be an advantage, not an obstacle.

As financial advisers, you're focused on delivering exceptional advice to your clients. But let's face it: Compliance can sometimes feel like a roadblock rather than a resource.

However, when approached strategically, compliance can become a powerful ally in your practice — not just a box to check.

At Advisors Excel, we've learned that the key to making compliance work for everyone lies in collaboration. While our experience at AE Wealth Management provides a useful example, the principles we've developed while working closely with our advisers can apply to any financial firm.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

By fostering strong partnerships with your compliance teams, you can create an environment where compliance supports your initiatives, not stifles them.

Collaboration: The foundation of compliance success

Compliance isn't just a back-office function; it's a team effort. Financial advisers and compliance professionals need to work together to help ensure that regulatory requirements are met without disrupting the adviser-client relationship.

Open communication is the cornerstone of this collaboration. Regular compliance meetings, workshops and training sessions can help keep advisers informed about policy changes and regulatory updates.

Just as importantly, compliance professionals must ensure that advisers know exactly whom to contact when they have questions or need guidance.

Compliance teams also must be open to feedback from advisers, remembering that collaboration is a two-way street. Policies that are too complex or impractical can hinder advisers' ability to serve their clients effectively.

By inviting advisers to share their concerns and suggestions, compliance teams can create policies that are effective, realistic and user-friendly.

When advisers feel heard and supported, they're more likely to embrace compliance as a partner in their success rather than a hurdle to overcome.

Transparency: Building trust through openness

Trust is the bedrock of any successful relationship, and the adviser-compliance relationship is no exception. Transparency is essential to building that trust.

At AE, we prioritize transparency by openly sharing compliance policies, regulatory updates and even audit findings with our advisers. This openness helps advisers navigate the regulatory landscape with confidence and encourages them to proactively address potential compliance issues before they escalate.

Transparency also extends to our interactions with regulatory bodies. By maintaining clear and honest communication, we demonstrate our commitment to doing things the right way.

Advisers play a critical role in this process by adhering to documented procedures and upholding the firm's reputation for integrity.

Education: Empowering advisers to excel

The phrase "knowledge is power" may seem cliché, but this axiom is especially pertinent when it comes to compliance. Advisers who understand the "why" behind compliance requirements are better equipped to meet those standards and more inclined to integrate them into their daily practices.

Interested in more information for financial professionals? Sign up for Kiplinger’s new twice-monthly free newsletter, Adviser Angle.

That's why ongoing education is a priority. At AE, we develop training programs tailored to specific regulatory challenges advisers face. These programs help provide advisers with the knowledge and skills they need to stay compliant while focusing on what they do best: serving their clients.

When advisers feel confident in their understanding of compliance, they contribute to a culture of excellence and trust.

Moving forward together

The relationship between financial advisers and compliance teams doesn't have to be adversarial. By working together, prioritizing transparency and investing in education, we can turn compliance into a strategic advantage — one where everyone benefits.

Advisers feel supported, compliance teams thrive, and clients receive the high-quality service they deserve.

Whether you're part of a large RIA or an independent practice, these collaborative principles can help you navigate the complexities of financial regulation while building trust and driving results.

4883036 – 11/25

Related Content

• What the 2026 Tax Landscape Means for Advisers, From a Financial Planner
• From Vision to Value: A Blueprint for Helping to Build Your Advisory Practice
• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Alternative investment strategies, including those in the private markets, have long been a component of sophisticated portfolio construction.

But there is a notable new trend in the financial advice industry: Retail investors are asking about them.

As product innovation lowers entry points and broadens distribution, individual investors want to access the strategies once reserved for institutions and the ultrawealthy.

Successfully providing advice in this new era will require targeted client education, the setting of realistic expectations and keeping updated on the proliferation of products and offerings being introduced to the public.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The opening of private market opportunities to retail investors is being framed as "democratization," suggesting that broader access equates to a larger, more accessible playing field.

But it's crucial to remember that greater availability does not ensure client understanding.

Alongside explaining the many benefits of private market investing, leading advisers will need to interpret and effectively communicate the unique characteristics of private assets — such as limited liquidity, complex valuations and wide performance dispersion — to clients who are mostly familiar with public markets.

To be sure, as beneficial sources of diversification, private market assets have grown popular for a reason. Gaining exposure to excellent companies and investment strategies that aren't available in public markets is something to be legitimately excited about.

But, as clients become more interested, they'll also be looking more keenly at adviser performance. Discerning quality, evaluating managers and aligning structures with each client's liquidity needs and investment horizons will be crucial for making a good impression — and a good return.

The new opportunity for advisers

Institutional allocators were the first to harness the diversification and return potential of alternatives, helping private market assets under management surge to $16 trillion in 2025 — nearly triple what they were a decade ago.

Financial advisers who were early adopters of these strategies know that client interest in private markets is easily piqued. As product innovation and coordinated marketing campaigns broaden public awareness, more and more clients will aim to fit these investments into their long-term plans.

When used appropriately, private market strategies can be excellent complements to public market holdings.

Product options are indeed proliferating. Evergreen funds, interval funds and non-traded vehicles have opened the door to retail investors by lowering minimums, streamlining tax reporting and introducing partial liquidity.

For advisers, this represents a client conversation that needs to be led. The most effective practitioners will shape expectations, determine which clients are best suited for private market exposure and align allocation size and liquidity profiles to individual goals.

Clients may also need basic guidance in how these investments differ from traditional public market vehicles — especially in terms of structure, transparency and performance reporting.

Common private market performance metrics such as internal rate of return (IRR) or multiple on invested capital (MOIC) will need to be explained and contrasted with the time-weighted return measures common to public markets.

Educating clients that private investments typically involve longer holding periods and offer less liquidity can be an opportunity to emphasize investment patience, disciplined behavior and the avoidance of reactionary decisions during short-term market swings.

Due diligence: Operations and strategy

Most advisers select private market funds and strategies from a home-office bench or platform of pre-vetted offerings. But professional discernment still matters greatly. Due diligence is an exercise to understanding both how managers operate and how their strategies fit within client portfolios.

For example, in low-interest-rate environments, easy capital contributes to compressed yields and can mask differences in skill among private managers. Today's higher rates have made for more discriminating capital, and performance dispersion has widened.

Learning how to identify managers with exceptional operational discipline, unique deal-sourcing advantages and transparent reporting will be crucial.

Advisers must understand not only what is available, but why each fund or vehicle deserves consideration. If there is an attractive fit, advisers should be able to explain how its structure and liquidity align with a client's objectives; if it doesn't, they should be able to explain why not.

The ability to translate a list of firm-approved products into a coherent, client-specific strategy is what distinguishes informed selection from mere access.

Interested in more information for financial professionals? Sign up for Kiplinger's new twice-monthly free newsletter, Adviser Angle.

Given the opacity, complexity and diversity of private markets, specialized knowledge is critical. Advisers with advanced credentials such as the Certified Investment Management Analyst® (CIMA®) designation may be better prepared to evaluate fund structures, critique manager practices and integrate private assets responsibly into client portfolios.

The path ahead

As the world of alternative assets and private markets grows more intricate and diverse, the challenge of choosing and managing these investments will only increase.

Advisers who truly distinguish themselves will be those who know how to leverage them expertly in the client relationship: aligning choices with investor goals, benchmarking performance against public alternatives and managing expectations with candor.

No one can predict exactly how private markets will evolve from here, and every carefully selected private investment carries both the possibility of success and disappointment.

This means transparency and education will remain as the adviser's most reliable tools in maintaining trust and relationships across market cycles.

Sean Walters is CEO of the Investments & Wealth Institute, where he is responsible for the overall management and success of the Institute, a global leading association in professional development and certification for the financial advice profession. Since 2010, Sean has been pivotal in protecting and advancing the Institute’s non-profit mission to be the leading educational community of financial professionals, dedicated to elevating investment and wealth management client outcomes.

Mike Kurz is the director of programs at the Investments & Wealth Institute, where he serves to grow the strength of the Institute through continuous improvement in each of the certification programs and is a featured speaker in advanced education programs.

Related Content

• If You're Ignoring Private Markets, You're Missing Most of the Action
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Financial Advisers Can Build Retiring Clients' Confidence
• The Four Key Pillars of Wealth Management of the Future
• How Financial Professionals Can Build Trust With Clients

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

It's been nearly a decade since the last major overhaul of the U.S. tax code, and as 2026 approaches, advisers are preparing for what may be one of the most consequential resets in recent memory.

News has been circulating for months about the One Big Beautiful Bill Act (OBBB) since it was signed in July, but now is the time when many of its implications are beginning to take shape as we head toward their effective date in 2026.

The OBBB has replaced uncertainty with permanence, locking in lower individual income tax rates, expanding deductions for business owners and solidifying estate exemptions that had once been scheduled to expire.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

On the surface, the new environment feels simpler. In reality, it raises the bar for the financial planning profession. A tax code that stays still doesn't reduce the need for expertise; it amplifies it.

Advisers now face a different kind of challenge: transforming stability into strategy.

The changes introduced by the OBBB include:

Permanent lower tax brackets. The Tax Cuts and Jobs Act of 2017's reduced individual income tax rates are now permanent, preserving historically low brackets and expanded standard deductions.

Estate and gift tax exemption increase. The unified exemption rises to $15 million per person ($30 million per couple), permanently indexed for inflation.

The higher exemptions for wealth transfer provide new flexibility for families, business owners and legacy planning strategies.

Temporary enhanced state and local tax (SALT) deduction (2025-2029). The cap increases to $40,000 for modified adjusted gross income (MAGI) under $500,000, with a steep phase-out and reversion to $10,000 in 2030.

Many taxpayers will enjoy a few years of relief before the cap reverts, making timing and income management more critical than ever.

New itemized deduction limitation (effective in 2026). Top-bracket taxpayers (37%) will see itemized deductions limited to a 35% effective benefit, creating a window of opportunity for charitable and deductible planning before the change takes effect.

New temporary deductions and credits (2025-2028):

• No tax on tips and overtime (up to $25,000 each)
• A new deduction of $6,000 per taxpayer for people age 65-plus
• Auto loan interest deduction for U.S.-assembled vehicles (up to $10,000)

Child and family enhancements. The child tax credit rises to $2,200 per child (permanent), and so-called Trump Accounts introduce a $5,000/year child savings vehicle with federal seed funding.

Business tax provisions. Section 199A (20% qualified business income deduction) and 100% bonus depreciation are made permanent, while R&D expensing and business interest deductions are restored and liberalized.

Permanent relief for business owners. Key provisions for pass-through entities, depreciation and research expensing are no longer set to expire, ensuring continued support for entrepreneurial growth.

Long-term considerations are easier now

The permanence of lower brackets allows for the kind of long-term modeling that's been elusive since 2017.

Roth conversions, charitable giving and capital gains harvesting can all be viewed through a multiyear lens.

The absence of looming sunsets gives advisers a chance to coordinate across disciplines, working alongside accountants, attorneys and insurance specialists to build truly integrated wealth plans.

When the framework is predictable, planning can finally become architectural instead of tactical.

Yet markets remain unpredictable, and that's where the profession's human element matters most. If the last few years have taught us anything, it's that volatility is the one constant.

Advisers who guide clients through uncertainty, not away from it, will be best positioned to lead in this next phase. Helping clients understand the behavioral side of investing — including the fear that can derail discipline — will remain just as critical as tax or investment strategies.

Interested in more information for financial professionals? Sign up for Kiplinger's new twice-monthly free newsletter, Adviser Angle.

Periods of market weakness often present the greatest opportunities. When asset values dip, so do conversion costs and gifting valuations. Proactive advisers can help clients take advantage of those temporary conditions to create lasting tax advantages.

Volatility doesn't have to be a setback; it can be a planning tool, provided communication is timely and clear.

Diversification, too, will continue to test both advisers and clients. It rarely stands out in any single year but remains the foundation of long-term wealth preservation.

As the economic landscape becomes more complex, with global elections, shifting interest rates and evolving corporate earnings trends, diversification is what turns unpredictability into endurance.

Advisers who can contextualize that truth will keep clients grounded when the headlines turn noisy.

The importance of tax strategy

But perhaps the most defining difference in 2026 will be the rise of tax strategy as the profession's key differentiator. Investment performance may fluctuate, but the ability to minimize lifetime tax drag and enhance efficiency is measurable, durable and directly tied to advisor value.

The OBBB gives professionals a stable backdrop to design and execute those strategies.

In practice, that means looking at every decision through a tax-integrated lens.

• How do withdrawals affect future brackets and Medicare surcharges?
• When should a client harvest gains or accelerate income?
• How can charitable intent align with tax savings?

These aren't once-a-year conversations — they're the new rhythm of holistic financial planning.

Technology and automation will continue to support this work, but they can't replace the perspective advisers bring. The future of advice lies not just in data, but in dialogue.

Clients want to understand how their financial lives fit together and need reassurance that their plan accounts for what's controllable, even when the world isn't.

The OBBB is more than just another piece of tax legislation. It represents a chance to help clients create stability instead of reacting to uncertainty.

For an adviser, it's an invitation to elevate yourself from problem solver to plan designer, to turn clarity into confidence and to ensure that strategy, not circumstance, drives outcomes.

Related Content

• Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client Strategies
• Savvy Marketing Tips for Financial Pros From a Financial Pro
• Navigating Annuity Taxation: A Guide for Financial Advisers
• How Financial Advisers Can Build Retiring Clients' Confidence
• Advisers: Master the Fed Funds Rate, Help Clients Master Retirement

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

In late 2004, my partners and I found ourselves at both a crossroads and a kitchen table.

As independent advisers, we felt there was a gap in the industry — the essential support needed to truly thrive was missing. We spent countless nights huddled in my kitchen, mapping out a vision for a support system built by advisers for advisers. That vision became Advisors Excel.

Our journey from a basement office to an industry leader offers a blueprint not just for building a model independent marketing organization (IMO), but for building any successful advisory practice.

The principles we followed can be applied directly to your business, helping you create a practice that is resilient, client-focused and built for growth.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

These are the lessons we learned along the way.

Redefine your foundation: Think beyond the transaction

From day one, we knew that simply providing access to products was not enough. For an adviser, this is the equivalent of just managing a portfolio or selling a policy. While fundamental, it's the starting line, not the finish. True value lies in the comprehensive experience you create for your clients.

When we launched, we pooled our savings to build more than a distribution channel — we aimed to create a community of unrivaled partners.

Think about your own practice. Are you solely focused on the transaction, or are you building a client experience?

Consider what services you can layer on top of your core financial advice. This could include educational workshops, more comprehensive financial planning, strategic introductions to other professionals like CPAs and attorneys and even exciting interactive events that encourage clients to consider how they're spending their time, not just their money.

Your goal should be to become an indispensable part of your clients' financial lives.

Build your arsenal of support

Running a great practice requires you to be more than a great adviser. You're also a CEO, a marketer, a tech pro and a manager.

As we grew, we systematically built out services to help address the common operational hurdles that hold advisers back. You can apply the same mindset to your own business by identifying your weaknesses and strategically seeking support.

Solve complex problems. We created a dedicated case design unit because we knew advisers needed a resource for complex client situations. For you, this means building a network of specialists or mentors you can turn to.

Don't be afraid to collaborate with others to find the most ideal solutions for your clients. It demonstrates your commitment to their future.

Master your marketing. We launched a creative division to help advisers tell their stories and attract leads. Every adviser needs a marketing engine. What is your story? How are you communicating it?

Whether through a newsletter, podcast, local radio show or strong digital presence, you must find a way to connect with your ideal clients and articulate your value.

Embrace technology. We recognized the digital shift early and invested in platforms to improve efficiency and connectivity. What technology could streamline your operations?

A good CRM, financial planning software or automated marketing tools can free up your time, allowing you to focus on client-facing activities that generate revenue and deepen relationships.

The right tech isn't an expense — it's an investment in your capacity to grow.

By building out this back-office support — either in-house, through outsourcing or with a strategic partner like Advisors Excel — you can transform your practice from a one-person show into a scalable business.

Your mission is to clear away operational hurdles so you can focus on what you do best: serving clients.

Create your own community of excellence

Being an independent adviser can feel like a solitary journey, but it doesn't have to be. We made it a priority to bring advisers together for shared learning and relationship building through innovative trainings and world-class events.

The lesson for your practice is twofold: build a community for your clients and become an active member of a community for yourself.

Our first major event was a breakthrough. Seeing professionals share ideas and build friendships validated our vision.

Interested in more information for financial professionals? Sign up for Kiplinger's new twice-monthly free newsletter, Adviser Angle.

You can foster a similar sense of belonging for your clients through appreciation events, community engagement opportunities, educational seminars or client advisory boards. When clients feel like they are part of something bigger, their loyalty deepens.

Likewise, you need your own peer group. Seek out a study group, join an industry association or attend conferences.

Connecting with other successful advisers is not about finding competition. It's about finding inspiration, sharing best practices and pushing one another to be better. An environment where excellence is shared is one where everyone wins.

Your practice, your future

Looking back, our success came from sticking to a simple vision: to build the company we wish we'd had by adhering to our core principles and emphasizing core values.

For you, the call to action is to build the practice your ideal clients wish they had. Don't just be an adviser; be a partner in their success.

When you align your business model with their needs and provide the resources to help make their goals happen, the potential for your practice is limitless.

Cody Foster is co-founder of Advisors Excel in Topeka, Kansas. Advisors Excel has a mission to help "good financial advisors become great business owners so they can help people enjoy an amazing retirement." Since its founding in 2005, the company has grown from the three original founders to over 1,000 employees today, making them one of the largest employers in Topeka. 11/25-4883036

Related Content

• Don't Just Sell, Connect: How Financial Advisers Can Ignite Their Sales Growth
• Serving the HNW Market: How Financial Advisers Can Break Through and Deliver Lasting Value
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

The defined outcome exchange-traded fund (ETF) market has exploded in recent years, with assets growing from virtually nothing a decade ago to more than $70 billion today.

But despite their growing popularity, this investment category remains widely misunderstood by both advisers and investors.

Some view defined outcome ETFs as too complex for average portfolios, while others see them as silver bullets that have the potential to eliminate risk entirely.

The reality lies somewhere in between. Advisers who understand how these products actually work can use them strategically to help address specific client needs.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The mechanics of defined outcome ETFs

Defined outcome ETFs (also referred to as buffered ETFs) promise specific return profiles over predetermined time periods, usually one to two years. Fund managers use options strategies to deliver outcomes that fall between traditional equity and fixed income investments.

In most cases, the fund includes a broad equity index while simultaneously buying protective puts and selling call options to create what's essentially a collar strategy packaged as an ETF with some additional subfeatures depending on the desired outcome.

This structure creates three key characteristics that differentiate them from traditional investments:

Downside protection. While risk can never be 100% eliminated, defined outcome ETFs offer various ways to help mitigate risk through the use of buffers, barriers and floors.

Upside participation. Unlike traditional principal-protected products, defined outcome ETFs allow investors to participate in market gains up to a predetermined cap, usually ranging from 8% to 15% annually, or in some other cases, you can get an "uncapped" profile while giving up some initial gains on the first few percentage points.

Time sensitivity. The protection and participation features apply only if the ETF held for the full outcome period. Selling early can potentially expose you to some or all of the volatility of the underlying reference assets. It's usually somewhere in between, depending on the time left.

Common misconceptions

Many advisers hesitate to recommend defined outcome ETFs to individual investors because of persistent myths and misunderstandings about their complexity and suitability. Understanding the facts helps separate legitimate concerns from unfounded fears.

Myth No. 1: They're too complex for average investors.

While the underlying options mechanics are sophisticated, the end result is straightforward: known upside potential with limited downside risk over a specific timeframe.

Investors don't need to understand options theory any more than they need to understand bond mathematics to own fixed income funds.

Myth No. 2: The fees are prohibitively high.

Expense ratios average 0.78%, higher than broad index funds but reasonable given the active options management required.

More importantly, the fee structure is transparent and predictable, unlike some structured products with hidden costs.

Myth No. 3: They eliminate all investment risk.

Defined outcome ETFs still carry market risk within their protection parameters. If the underlying index falls 20% and the ETF has 10% downside protection, investors still lose 10%.

There's also a risk that protection may not apply if the fund is sold before the outcome period ends.

Strategic applications in client portfolios

Defined outcome ETFs work best when used strategically rather than as core holdings, addressing specific client concerns that traditional asset allocation struggles to solve.

Consider clients approaching retirement who worry about market timing and sequence of returns risk. They face a challenging dilemma: They need continued equity exposure for growth, but they can't afford significant losses that might derail their retirement plans.

Defined outcome ETFs can bridge this gap between accumulation and distribution phases, providing meaningful upside participation while limiting the downside.

These products offer a different kind of value for anxious clients who struggle to stay invested during volatility. There's a psychological benefit to knowing the maximum loss, and this benefit often outweighs the opportunity cost of capped returns.

Interested in more information for financial professionals? Sign up for Kiplinger's new twice-monthly free newsletter, Adviser Angle.

Rather than watching nervous clients bail out of the market during corrections, advisers can use defined outcome ETFs to help keep them invested with downside protection that can help provide emotional comfort.

Defined outcome ETFs also serve as effective tactical allocation tools. Rather than trying to time the market with cash positions that earn nothing, advisers can use these products to maintain equity exposure while providing some protection during uncertain periods.

This approach can help keep clients invested in growth assets while acknowledging legitimate concerns about market conditions.

Implementation considerations

Success with defined outcome ETFs requires careful attention to timing and client communication. Unlike traditional mutual funds that can be purchased anytime, these products work best when initiated near the beginning of their outcome periods.

The protection and participation features reset with each new series, typically launching quarterly. Advisers should track upcoming launches and time purchases accordingly, rather than buying at random points during the outcome period.

Client education is equally important. Investors need to understand that these products are designed to be held for specific timeframes and that early redemption can expose them to options volatility that undermines the protection features.

Setting appropriate expectations

Defined outcome ETFs represent a middle ground between the full upside potential of traditional equity investing and the capital preservation focus of fixed income. They are most valuable for investors who prioritize downside protection over maximum return potential.

Investors need to be aware that there is a trade-off of capped upside participation for protection against significant losses. During strong bull markets, traditional index funds will outperform, while protection features provide meaningful value in severe bear markets.

Advisers would be wise to position these products as tools for specific situations rather than replacements for traditional asset allocation. They work well for risk-averse clients, those approaching major financial transitions or as tactical allocations during periods of heightened uncertainty.

As always, the key is matching the tool to the client's specific needs and timeline. For investors who understand the trade-offs and can commit to the outcome period, defined outcome ETFs offer a compelling way to participate in market growth while managing downside risk in ways traditional portfolios cannot replicate.

AE Wealth Management, LLC (AEWM) is an SEC Registered Investment Adviser (RIA) located in Topeka, Kansas. Registration does not denote any level of skill or qualification. Information regarding the RIA offering the investment advisory services can be found on brokercheck.finra.org. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The personal opinions expressed by Ben Sullivan are his alone and may not be those of AE Wealth Management or the firm providing this report to you. This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security or insurance product. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the U.S. 4809206 – 9/25

Related Content

• Investment Management: A Return to Simplicity
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers
• The Hidden Risk Lurking in Most Retirement Plans: Human Behavior
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
• How Financial Advisers Can Build Retiring Clients' Confidence

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

America is minting "everyday millionaires" faster than ever before — 1,000 per day in 2024, according to the UBS Global Wealth Report 2025.

But for many people, having a seven-plus-figure net worth doesn't necessarily translate into feelings of financial security.

In fact, according to Northwestern Mutual's Planning & Progress Study, only one-third (32%) of American millionaires consider themselves "wealthy," and nearly half (48%) say their financial planning needs improvement.

This may seem like a paradox — despite having sufficient assets, high-net-worth (HNW) individuals often feel vulnerable.

The concern, however, is not so much about having enough money, but about managing it effectively and passing it along to the next generation efficiently and thoughtfully.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

This represents a huge opportunity for advisers interested in serving the HNW market.

But attracting and retaining HNW clients is no simple task. It requires a full complement of tools, services, expertise and skillsets to address these clients' sophisticated planning needs.

Whether an adviser is looking to bring in a new HNW client or support an existing one entering the HNW space, here are four actionable strategies they can implement to build that initial trust and deliver lasting value.

1. Elevate your capabilities

Wealthy clients have come to expect increasingly sophisticated financial planning solutions. They want an adviser who can offer a wide breadth of specialized skills and capabilities. Of course, they want a full suite of investment solutions — with access to alternative investments, separately managed accounts, direct indexing and more.

But they also want risk management, tax planning, business planning, family office services, legacy planning guidance, charitable giving advice and advanced banking capabilities.

These are nonnegotiable for many wealthy individuals today, and failing to deliver on them can be the difference between landing a client and losing their business.

But it's not enough for advisers to simply offer these products and services. They need to back it up with expertise to skillfully execute them. This is where continued education and advanced professional credentials become critical.

Obtaining designations like Certified Private Wealth Advisor® (CPWA®) and Tax Planning Certified Professional® (TPCP®), among others, not only deepen your subject matter expertise but instill confidence in HNW clients who seek that extra layer of credibility.

2. Deliver a comprehensive planning experience

It's not uncommon for HNW clients to work with multiple financial professionals — each managing a separate piece of their wealth puzzle. But this fragmented approach can be inefficient and deliver suboptimal results.

That's why more wealthy clients are seeking a one-stop-shop experience where all the different elements of their financial plans (investments, insurance, estate planning, etc.) are elegantly woven into one comprehensive strategy.

At the center of it all, they are looking for a trusted adviser to act as their financial quarterback — someone who understands the full scope of their financial lives and can serve as a point person to orchestrate a seamless, integrated plan.

To be successful in this market, aspiring HNW advisers need to clearly show how the different pieces of a comprehensive financial plan work together and help clients achieve their goals.

3. Build a strong, diversified team

To deliver the comprehensive planning experience HNW clients are looking for, you need to have the right team in place.

This means hiring talented people from diverse backgrounds — including highly credentialed investment professionals, experienced financial planners, tax and insurance experts and support players with top-notch soft skills.

The key is to build a strong, well-rounded team prepared to help clients with any situation that might arise in their lives — and do it with the level of white-glove service wealthy clients expect.

Some firms offer advisers access to specialized capabilities that reside within their corporate headquarters, which is a valuable benefit to advisers moving into the HNW space.

At Northwestern Mutual, for example, we have a dedicated team of sophisticated planners, as well as legal and tax professionals, advisers can tap for support when building bespoke plans to address HNW clients' complex goals and needs.

We also encourage advisers to participate in joint-work with their fellow advisers, where they can learn and work alongside national leaders who have more extensive experience serving the HNW market.

Advisers can also establish their own relationships with law firms, accounting firms and others to bring those specialized skills to clients and ensure there are no gaps in the planning experience.

Interested in more information for financial professionals? Sign up for Kiplinger’s new twice-monthly free newsletter, Adviser Angle.

The most successful advisers I see working with HNW clients have strong, diverse networks around them that complement and deepen their team's capabilities. Teams have even hired concierge leaders from the hospitality industry to ensure their HNW client experience provides the service clients expect.

Just be sure to remain in the role of team captain, aware of all that is happening, to deliver an efficient and tailored experience for the client.

4. Prioritize family wealth education

Eighty-four percent of HNW clients are interested in expanding their financial knowledge. Embrace your role as a teacher. Affluent families are increasingly saying the challenge isn't just managing money — it's preparing the next generation to inherit it.

That requires education and open conversations about how wealth is structured, how it aligns with the family's values and how to sustain it responsibly.

That's easier said than done. Money is the taboo topic in America. Many clients avoid conversations about finances with loved ones knowing, at times, they can be uncomfortable and emotional.

But generational wealth is not indefinite wealth. Most affluent families (70%) lose their accumulated wealth by the second generation, and the majority of millionaires say they are "self made." So, it's critical for HNW clients to involve their adult children and other heirs in planning conversations early and often.

More and more, we are seeing HNW clients place a premium on advisers who can help them navigate these difficult discussions. They highly value having a trusted partner with a deep understanding of their unique family dynamics, able to coach their families through both the technical and psychological aspects of financial planning.

By embracing this role, advisers have the unique opportunity to build trust and relationships that span generations.

Looking ahead

The wealth management industry is undergoing a profound transformation. Sophisticated planning strategies once reserved for ultra-high-net-worth individuals with $100 million or more in assets are now considered table stakes for clients with a tenth of that level of wealth.

At the same time, the advancement of digital tools has made these services more accessible for clients across all segments.

As the playing field levels, advisers are facing more competition than ever before in the HNW market. Our advisers have found great success in this environment by focusing on organic growth and forming deep relationships with clients of great potential before those clients grow into the highly competitive HNW market.

To stand out, advisers need to go beyond offering investment products and deliver a truly exceptional planning experience. HNW clients are looking for someone they can trust to understand their full financial picture, guide them through difficult decisions and help them leave a legacy that endures.

Advisers who meet the moment by delivering on this trust will ultimately win the client relationships that stand the test of time and be best positioned to not just compete, but thrive in the HNW market.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries, including Northwestern Long Term Care Insurance Company (NLTC), Northwestern Mutual Investment Services, LLC (NMIS) (Investment Brokerage Services), a registered investment adviser, broker-dealer, and member of FINRA and SIPC, and Northwestern Mutual Wealth Management Company® (NMWMC) (Investment Advisory Services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI. Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of Northwestern Mutual Wealth Management Company (NMWMC) are credentialed as NMWMC representatives to provide advisory services.

Related Content

• New to Financial Advising? Nine Key Ways to Build Trust With Your Clients
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers
• Seven Tips to Land Your First Client as a Financial Adviser or Entrepreneur

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

It's a message we frequently repeat at Advisors Excel: When record-breaking results are achieved — as they have been in recent years by many financial professionals — it's easy for complacency to set in.

Sales is the lifeblood of any business, and complacency can be its biggest threat. It's easy to do what we've always done, but to grow, we must commit to continuous improvement. Something as little as a 5% improvement in your conversion rate can lead to significant growth.

This isn't just about attracting new clients; it's about optimizing every interaction, from the first meeting to the follow-up touches.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Refine your appointment skills

The first step to improving any sales process is to refine your client meetings. Every meeting is an opportunity to build trust and demonstrate value. This doesn't mean a complete overhaul; instead, look for opportunities to tweak your process. After all, small hinges can swing big doors.

Here are a few strategies to consider:

Research and prepare. Before every meeting, ensure you understand the prospective client's background, needs and preferences. Tailor your presentation to address these specifics.

Tools like Catchlight can give you more information, but so can looking up prospects on social media. In today's online world, learning more about your potential clients is easier than ever.

Master asking questions. This is an area where complacency can set in. You sit in so many similar meetings every day that it can be easy to stop listening as attentively as you should.

Many great resources are available to help you learn how to ask better questions and listen.

Offer a clear value proposition. Articulate your value proposition clearly and concisely. Clients should leave the meeting with a strong understanding of how your solutions can benefit them.

One adviser I interviewed earlier this year noted his first appointments include about 30 minutes of him clearly articulating to potential clients how his firm is different.

Enhance touchpoints between meetings

The touches between meetings are just as crucial as the meetings themselves. Consistent and meaningful follow-ups keep you top of mind and build stronger relationships.

Personalize communication. Use personalized emails and calls to check in and provide updates. Tailor your messages based on previous interactions to show you remember and care about each client.

There is so much technology to help you achieve this, from artificial intelligence tools like Zocks and ChatGPT to BombBomb videos.

Provide educational content. Share relevant articles, blogs or industry insights that might interest your clients. This positions you as a thought leader and adds value outside the sales context.

Interested in more information for financial professionals? Sign up for Kiplinger’s new twice-monthly free newsletter, Adviser Angle.

Show appreciation. Gestures like handwritten notes or small gifts can create a lasting impression and uniquely position you. Never underestimate the power of a handwritten note.

Embrace technology

Adopting the right tools to help personalize and automate at the same time can be powerful.

But one caution: Don't let technology be your excuse for not doing the basics. So often at Advisors Excel, I hear our team members complain that we don't have the best technology solution, when sometimes the answer can be to just pick up the phone and call someone.

Lead by example

As a leader, your commitment to improvement sets the tone for your entire team. Demonstrate the importance of refining the sales process by constantly looking for ways to enhance your skills and actively participating in training sessions.

Sandler Selling, which you can access yourself and also through Advisors Excel, would be a great learning opportunity for your team.

More than anything, don't ever miss an opportunity to look for ways you can adjust your process and get your entire team on board with this constant improvement. Periodically try at least two new things to keep from becoming complacent.

Remember, the small, consistent actions you take today can yield significant results in the future. Let's continue elevating our sales strategies to work toward a remarkable future.

You help people enjoy their retirement. What you do matters, so do it with excellence.

Advisors Excel's mission is simple yet profound: to help good advisers become great business owners while enabling their clients to enjoy the retirement of their dreams.

Advisors Excel has been recognized by various third parties, including Great Place to Work®, the Best of Topeka awards, and Fortune. These recognitions are based on factors such as employee surveys, workplace culture, and community voting, and are not related to the services provided by Advisors Excel or its representatives. Advisors Excel did not provide compensation to receive these recognitions; however, certain awards may have required a standard participation or application fee. Recognition by such publications or organizations should not be construed as a guarantee of future success.

Advisors Excel and its story have also been referenced in publications such as Success Magazine, Darren Hardy’s The Entrepreneur Roller Coaster, and Tony Robbins’ Money: Master the Game. These mentions are for informational purposes only and do not constitute endorsements of Advisors Excel’s services. 9/25 — 4809206

Related Content

• New to Financial Advising? Nine Key Ways to Build Trust With Your Clients
• Winning Strategies for Financial Advisers as Clients' Lives Evolve
• How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)
• Addressing Your Clients' Emotional Side: Communication Techniques for Financial Advisers
• Seven Tips to Land Your First Client as a Financial Adviser or Entrepreneur

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.