Winning Strategies for Financial Advisers as Clients' Lives Evolve

Financial advisers have long recognized that some of the most significant opportunities for growth arise when clients experience major life events — what many in the industry refer to as “Money in Motion.”

These moments can be transformative, yet unpredictable — a sudden inheritance, a spouse’s health crisis, a career windfall or the sale of a family business. Each instance brings both the risk of losing client assets and the potential to deepen relationships across generations.

A new study from NextChapter, an engagement consulting firm that specializes in client retention, consolidation and organic growth, sheds fresh light on how advisers can navigate these critical turning points more effectively.

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The NextChapter x NextGen 2024 Advisor Study offers a revealing look at how some of today’s most forward-thinking advisers are successfully guiding families through complex transitions — and what the broader wealth management industry can learn from them.

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Why Money in Motion matters

At its core, Money in Motion(SM) describes the dynamic circumstances in which individuals or businesses face pivotal financial decisions. Inheritances, bonuses, marriages, divorces and retirements all fall into this category. These inflection points often demand swift, informed action, yet they can also be fraught with emotion and uncertainty.

“Inflection points are key client engagement drivers that set money in motion and facilitate retention, consolidation and organic growth among NextGen clients and advisers,” says Steve Gresham, founder and managing principal of NextChapter. “They create a window of opportunity for advisers to demonstrate value, but only if they’re prepared.”

The NextChapter study took a deep dive into major Money in Motion(SM) triggers — frequent events that require engagement from a spouse or partner and often present a high potential opportunity for advisers to connect with the next generation of beneficiaries.

The research team spoke with senior leaders from both RIA and IBD firms, uncovering the strategies and challenges advisers encounter when guiding clients through these life transitions.

The study focused on five key areas:

• Adviser confidence in navigating trigger events
• Adequacy of training on triggers
• Availability of trigger tools and resources
• Ability of advisers to engage next-generation family members during or after a trigger event
• Access to subject matter experts (SMEs)

According to the study, most advisers who excel in handling Money in Motion events do so by building their own resources, tapping into specialized subject matter experts and adapting their technology to reflect a more holistic, family-oriented approach.

“We found that advisers who excel in this space largely do so on their own — by sourcing SME partners and modifying policies and planning software to reflect the family as the client,” Gresham notes. “It’s an opportunity for the industry to step up and provide more robust support.”

Key insights from the study

The interviews revealed that practice management, resource availability and proactive engagement with next-generation family members all play critical roles in harnessing Money in Motion opportunities.

Rethinking practice management

Advisers who successfully navigate generational wealth transitions typically start by making family engagement a core part of the onboarding process. They invite spouses, partners and adult children into early discussions, ensuring that everyone feels both informed and empowered.

At the same time, traditional success metrics — such as AUM growth alone — may mask deeper issues. Advisers in the study are turning to more nuanced indicators like gender-weighted revenue, age-weighted revenue and share of household to gauge the long-term health of their books.

Another persistent challenge is planning software that doesn’t fully capture the client’s family dynamics. Advisers reported a strong desire for features like interactive family trees and “solution spokes” that address common inflection points such as black swan health events.

One adviser noted, “I currently create a client family tree on paper — having it in eMoney would be a game-changer.”

Building and accessing resources

The study also found that many advisers are piecing together their own training and referral networks. When a client faces a sudden caregiving crisis or a cognitive decline issue, advisers frequently rely on a patchwork of online searches, one-off conversations or local specialists.

“We Googled and searched key topics and built our own network, but it’s not national,” said one participant. “Having a slate of SMEs — where do I sign up?”

Interestingly, smaller firms often prove more nimble in responding to these events. They might bring in a social worker on a per diem basis to support clients facing a health event or host a workshop on estate planning to engage both existing and next-generation clients.

These creative approaches can serve as a blueprint for larger organizations seeking to do more with less.

Solutions and product strategies

When it comes to offering specific solutions, many advisers see the value of protection products like long-term care insurance or annuities, especially for next-generation clients.

Yet complexity remains a major hurdle.

“Long-term care insurance can be a nightmare,” admitted one adviser, citing hour-long underwriting interviews that frustrate clients.

Fintech and insurtech firms may hold the key to streamlining these processes, making it easier for advisers to incorporate insurance solutions into their practices without derailing the client experience.

One adviser shared their approach to presenting long-term care options to clients: “We will show long-term care insurance in different flavors — just the pure premium product, the annuity rider and the life insurance rider.”

Overcoming industry gaps

Despite these success stories, the study also highlighted areas ripe for improvement. Advisers gave low marks — an average score of 2 (on a 1-to-5 scale) — for the availability of trigger-related resources.

“We have a per diem social worker on our team now,” said one participant, “but that’s because I took the initiative. Firm-level support or manufacturer-driven tools simply aren’t there.”

Gresham sees this as a missed opportunity: “There’s a clear need for microlearning and reactive support built into wealth management platforms.

If firms integrated just-in-time training, best-practice guides and SME connections into their planning software, it would not only help advisers handle crises more effectively, but it would also position them as trusted partners during some of life’s most vulnerable moments.”

Why more collaboration is needed

Suzanne Schmitt, managing director at NextChapter, believes the industry must step up to better equip advisers for these key “moments that matter.”

“This study’s results indicate that one of today’s big challenges in wealth management is the adviser’s access to tools, resources and SMEs during key ‘moments that matter.’ Advisers are seeing these critical life events but don’t have resources or an established playbook, so they’ll Google a topic like gray divorce, cognitive decline or elder fraud — tackling client issues one by one.

“There’s a huge tradeoff in terms of time and resources when you handle these problems as one-off solutions, compared to what can be replicated successfully with the right adviser tools and training resources.”

Schmitt also points out that the advisers in the study who rated themselves highly confident did so primarily because they took the initiative to learn, rather than relying on firm or product-manufacturer support.

“Firm ownership and finserv manufacturers could gain significant share if they invested in book mining, reactive support and point-in-time coaching and microlearning,” she says.

In other words, the next phase of evolution in wealth management may hinge on collaboration. By bridging the gap between advisers’ day-to-day challenges and the resources they need — from technology integrations to SME partnerships — the industry can help financial professionals forge stronger, more enduring relationships with clients and their families.

“Another aspect of collaboration is tapping into a bevy of time-tested free resources to help advisers gain confidence in understanding family money dynamics and for facilitating productive family conversations,” Schmitt says. “In addition to our NextChapter content, we recommend advisers explore resources from The Conversation Project and the National Alliance for Caregiving.”

Five action steps for advisers

Based on the insights from the NextChapter study, here are five steps financial advisers can take to better engage clients during key Money in Motion events and drive household consolidation and growth:

1. Build your own playbook

The study found that the most confident advisers have taken a do-it-yourself approach, curating their own training materials, client engagement strategies and referral networks.

“I had to seek out training myself. My firm began to promote longevity planning, but they had no clue what they were doing,” said one adviser in the study.

Without a firm-wide or industry-standard playbook for handling complex client situations — such as elder fraud, gray divorce or caregiving crises — advisers must take the initiative.

Creating an internal knowledge base and best-practice guides can provide structure for addressing these critical issues more efficiently.

2. Establish SME partnerships

Access to subject matter experts (SMEs) in areas such as health, housing and caregiving can be a game-changer. Instead of relying on ad hoc research, advisers can proactively establish relationships with trusted experts who can provide guidance and support during clients' major life transitions.

One adviser in the survey said, “We saw a need with health care situations — and found a per diem MSW (master’s of social work) professional who could help families.”

3. Learn from small firm innovation

Smaller firms often excel in personalizing client experiences by developing bespoke resources, forming strategic SME partnerships and hosting tailored workshops.

Some have brought in social workers or legal specialists on a per diem basis to assist clients facing health-related or financial challenges. Large firms can take inspiration from these nimble, client-centric approaches by integrating similar resources into their service models.

4. Rethink protection product strategies

Many advisers acknowledge the importance of protection solutions like long-term care insurance and annuities, but accessibility remains a barrier. Lengthy underwriting processes and product complexity can deter both advisers and clients.

Keeping abreast of emerging protection products to simplify these solutions can help ensure that clients receive the protection they need without unnecessary friction.

5. Engage next-generation clients in financial planning

The study found that next-generation clients are open to protection products and financial planning discussions — advisers just need to feel comfortable introducing them.

Advisers who proactively engage the next generation in discussions about risk management, longevity planning and intergenerational wealth strategies will strengthen relationships and improve long-term client retention.

Conclusion

By following these steps, financial advisers can better handle Money in Motion moments, strengthen multigenerational client relationships and become trusted guides during life’s critical transitions.

In a trust-based profession, advisers who effectively manage life’s key moments can achieve more than client satisfaction — they can build enduring client families.

The NextChapter study shows that strategies for success during Money in Motion events will distinguish thriving firms from those that are merely surviving.

By preparing for crucial moments, advisers can solidify their roles as essential partners, ensuring assets remain under their care.

The NextGen x NextChapter 2024 Advisor Study included 16 90-minute in-depth telephone and Zoom interviews with senior leaders — both RIA and IBD advisers — from a nationally representative sample of firms and practices. Researchers explored advisers’ experiences with key Money in Motion flow triggers that frequently involve the non-CFO spouse or partner, offering high potential for engaging next-generation beneficiaries and successor decision-makers. For a copy of the full study, email info@nextchapterinnovation.com.

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