The Evolving Role of Financial Advisors in Today’s Landscape

In decades past, the term “financial advisor” may have been synonymous with managing investments and tracking market movements, but when it comes to what’s expected of financial advisors today, the expectations are shifting.

This is due in large part to advancements in technology which have made certain aspects of wealth management (like buying and selling stocks) more easily accessible to individual investors. Even AI-driven robo-advisors with risk tolerance analysis are being leveraged by a broader range of investors to pursue more complex strategies. These advancements, coupled with increased competition across the financial services landscape, have made it critical for modern advisors to rethink their roles and adapt accordingly.

Here are the changes we've seen taking place, and what we believe investors should expect from their advisors moving forward.

Digitally driven interactions

While digital communications between advisors and clients was already in use, the onset of Covid-19 plunged us all deep into the world of working virtually. As a result, more people than ever are comfortable communicating remotely with their advisor – including retirees and those nearing retirement.

Not to mention, younger investors are reaching the age where they’re ready to engage with an advisor – especially as wealth begins to transfer down to Gen Xers and millennials. As these investors continue building wealth and receiving sizable inheritances, their need for financial advice grows.

Even prior to Covid, members of these generations have always been much more tech–savvy. They expect their advisor to have tech capabilities and systems already in place that enable them to work together seamlessly in a digital landscape. This may include gaining instant, online access (through a digital vault or dashboard, for example) to accounts and communicating back and forth with their advisor via text email, or messenger app.

Moving forward, advisors should be able to facilitate a relationship that’s both digitally driven, yet able to be personalized to address the client’s needs.

Connection is key

More than ever, investors who choose to work with a financial advisor want to feel that they're getting value out of the relationship beyond portfolio returns – and that means feeling a deep, meaningful connection with their advisor.

We’ve all been inundated with generic communications that try to lump us into a category. But the reality is, every person is different and deserves custom solutions to address their unique concerns. Two people who may look similar on the surface(say, they’re both 65 and retiring from the medical field) can have vastly different values, priorities, legacy goals and income needs in retirement. To stick them both with the same portfolio model based on their age alone would not be in their best interest – and could ultimately hurt their chances of enjoying retirement to the fullest.

Investors recognize that in a world where so much is automated and standardized, it’s critical that their advisor take the time to understand their unique needs and deliver guidance that addresses them fully.

Holistic wealth management is here to stay

Back in 2020, an in-depth analysis by research company McKinsey and Company hit the nail on the head when they concluded:

“In the next 10 years, advisers will gradually shed their role as investment managers and become more like integrated life/wealth coaches who advise clients on investments, banking, healthcare, protection, taxes, estate and financial wellness needs more broadly.”

The role of a financial advisor is no longer simply to develop and manage a client's portfolio – that’s just one piece of the financial planning puzzle they're expected to address. For a financial advisor to be an effective partner and guide for today’s investors, they must be able and willing to address the full spectrum of someone’s life, integrating financial decisions with personal goals, values and well-being.

The reality is, money gets messy, especially when there’s a lot of it and when there are many vying for a piece of the pie. That’s why your advisor should guide you on matters far beyond financial planning – everything from retirement, estate planning, wealth protection and succession planning must be addressed. But they also must help with relationship and familial issues that ultimately revolve around money, too.

Ready to Align Life and Wealth^®?

At Conway Wealth, our objective is to help our clients meet their long-term goals while investing in a way that aligns with their values and supports a fulfilling life. To accomplish this, we delve deep into what makes each client unique and where their true priorities lie – beyond simply achieving certain financial goals. We learn about their priorities, aspirations and objectives, which we then use to help build a more meaningful, long-standing relationship.

We’ve found that taking this holistic perspective is critical to being the best partners we can be, which is not only our personal passion but something we are required to do as fiduciaries. We are constantly inspired by our clients’ zest for life and desire to live it to the fullest, and we strive every day to help them find a balance between life and wealth.

If you’d like to learn more about our philosophy or services, we encourage you to send us a message today, email info@conwaywealthgroup.com or call 973.285.3640. 7409201.1

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