Lead advisor key to Creative Planning model

Peter Mallouk of Creative Planning.

Drive for continuous improvement keeps firm at the front of the pack, says CEO Peter Mallouk.

While the future of wealth and investments is hard to predict, for Peter Mallouk it will revolve around a culture of constant improvement. At his firm, Creative Planning, their goal is continual self-betterment.

“We’re looking at every aspect of our operation and asking, ‘How can we make this better?’” he says. “This applies to our technology, our internal processes, and the quality and speed of our services. It’s about continuous improvement – involving all team members. We believe that when we channel this collective energy toward improvement, the results can be transformative.”

According to data from Gartner, AI in finance will automate approximately 25 percent of tasks in banking by 2025. What’s more, AI is expected to generate $16 million in revenues in risk-related finance net year.

However, in this increasingly tech-dependent field, it’s important advisors not lose that human touch. For Mallouk, it was his career beginnings in the tax field that ultimately shaped his client-centric approach to wealth management.

“My earlier experience in providing legal, tax, and planning advice was enlightening,” he says. “It became clear that clients were yearning for independent advice, portfolios tailored to their unique situations, and a profound understanding of the tax implications of their investments. This recognition was pivotal in shaping our approach at Creative Planning.”

Under Mallouk’s guidance, Creative Planning has pioneered a comprehensive service model, integrating planning, investments, legal, tax, and trust services. The company was among the first to consolidate all these services under one roof – an integration that enabled them to create customized solutions for clients, aligning their investment strategies with their personal objectives. Its growth has been impressive, spurred by last year’s acquisition of Goldman Sachs’ RIA wealth division, previously known as United Capital, which it bought for $750 million in 2019.

“The lead advisor is key to our client relationship model,” says Mallouk. “They’re responsible for understanding the client’s goals in depth and navigating them through our comprehensive services. This approach ensures that we’re not just providing a service; we’re crafting a personalized financial path for each client.”

Financial education is also a crucial aspect of Mallouk’s philosophy. He emphasizes the importance of bridging the gap often found in basic financial understanding. Creative Planning’s response to this need is the Pathway Education Center, a program designed to offer financial knowledge to underserved communities.

“There’s a significant gap in financial education, which often leads to preventable financial challenges,” says Mallouk. “At Creative Planning, we took it upon ourselves to empower those in underserved communities with the knowledge they need. Our Pathway Education Center teaches essential skills like debt management, budgeting, and goal setting. The success we’ve seen in Kansas City is just the beginning, as we aim to take this initiative nationwide.”