With a historic wealth transfer underway, comes a defining opportunity for advisors. Yet, when you think about the industry there is a bit of inertia.
Many experienced advisors have spent years building deep relationships with their clients and that approach has worked for a long time, but many advisors haven’t formed meaningful connections with their clients’ loved ones. This inertia can lead to blind spots given the Great Wealth Transfer, which is unfolding in two waves.
In the first wave, assets will transfer to surviving spouses – most often women. Yet in many cases, the female partner is not fully included in advisor conversations. This mistake carries consequences: more than 70% of widows change advisors within the first year of losing a spouse. Advisors who don’t build relationships with both spouses risk losing the relationship when women step into the role as the sole steward of family wealth.
In the second wave, wealth passes to the next generation. And the numbers are telling: 81% of heirs say they plan to work with an advisor to manage their inheritance, according to research from Equitable.
At Equitable Advisors, the wealth management business of Equitable, we believe that the advisors best positioned to succeed during the Great Wealth Transfer are those who build meaningful relationships – not just with clients, but with their spouses, children and grandchildren. Further, to these advisors it’s not just about the numbers, it’s about trust, emotional intelligence and continuity.
So, what are the most effective advisors doing differently? We see three key behaviors:
The first strategy for navigating these shifts isn’t complicated—but it requires intentionality. We’ve seen that the most successful advisors involve both spouses in meetings, ensuring both voices are heard, and not assuming one partner is less financially engaged. They also invite the next generation into the conversation. With today’s technology, it’s never been easier to connect with clients’ children—even if they’re spread across geographies. Video conferencing can bring everyone together and can go a long way to help advisors connect with the next generation.
To build a practice that is equipped to serve clients across generations, it’s essential for advisors to think about the people behind the advice. Having a team that spans generations can provide continuity for families and their practices.
At Equitable Advisors, we’ve built a model to support advisors in building their own teams. Our average advisor age is 45—well below the industry average—because we’ve made it a priority to train, mentor and develop next-generation talent. Often, that means pairing experienced advisors with rising professionals who can connect with the next generation of clients.
In fact, several of our teams are built by advisors alongside their own children, creating a multi-generational dynamic that resonates with families. If your firm doesn’t have this structure or you’re a solo advisor, consider partnering with a firm that understands the importance of team continuity and provides the infrastructure to make it happen.
Financial planning is not just about the numbers, it’s about what matters most to clients and how that translates into how the money will be allocated. To lead with empathy, advisors can look at sharpening their skills beyond the mathematical so they can engage more emotionally with their clients, their spouses and the next generation.
We partnered with Columbia University on a holistic life planning program that brings emotional intelligence to the forefront of planning and teaches advisors how to ask questions that engages clients and their families in deeper and more meaningful conversations.
These questions can lead to open dialogue around family values, expectations and aspirations. We have found that this approach translates to trust because these conversations help clients – and their families – feel seen and understood.
If you’re not actively investing in these relationships now, someone else will. Advisors who lean into these strategies will not only build continuity for their clients, but for their practices.
David W. Karr is the chairman of Equitable Advisors, the wealth management business of Equitable, and is a member of the Equitable Operating Committee.
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