Why the rich want specialists

Wealth management firms are failing because they confuse segmenting clients with  specializing in their needs. Without deep expertise – especially for entrepreneurs and family wealth transfers – advisors are making costly mistakes that hurt clients and destabilize firms. 

Brett Bernstein, CEO and co-founder of XML Financial Group, speaks from experience. After leaving Merrill Lynch and LPL Financial to build his own RIA, he now leads a firm rooted in team-based planning, deep specialization, and a relentless focus on leadership development. 

For Bernstein, true client service requires a shift in mindset: advisors must think like head coaches, guiding not just investments but an entire ecosystem of legal, tax, and business strategies. 

“You have to start with having a diverse, educated group of wealth advisors,” Bernstein says. “Not every wealth advisor specializes in the needs of those segments, specifically, let’s say, entrepreneurs and female investors.” 

While he doesn’t believe clients should be served only by those who look like them, he stresses that skill alignment is non-negotiable. “You need to have the right skill set and understanding of the needs,” he explains. 

Bernstein’s own career path and route to independence reflects that philosophy. “I was liberated. I was free,” Bernstein says of launching XML Financial Group, arguing that first-hand experience as a business owner sharpens an advisor’s value. 

That real-world connection, he says, is what too many advisory models lack. Good general advice isn’t enough for entrepreneurs managing both personal and corporate finances. What’s needed is a team-based, collaborative approach. 

“I’m the head coach of the football team. The client is the owner. My job is to work with the offensive coordinator, the defensive coordinator, and if we don’t have it in house, we need to make sure that we are looping in the CPA, the tax attorney, the corporate attorney,” Bernstein says. 

Without that coordinated expertise, Bernstein warns, advisors risk operating with blinders on. “Otherwise, you're going to have advisors that only focus on what they see in front of them,” he explains. 

He’s equally critical of how many advisors view continuing education – as a box to check, rather than a leadership tool. “Some people might choose to just check the box and take the path of least resistance,” Bernstein says. Staying sharp means engaging deeply with legal experts, attending symposiums, and knowing when to bring in outside teams. “Rather than building it out from scratch, maybe it makes sense to hire a team or acquire a firm in totality,” he explains. 

Bernstein also believes the industry too often blurs important client distinctions, particularly among business owners. Being self-employed isn’t the same as being an entrepreneur, and advisors who miss that nuance risk falling short. 

“Entrepreneurs are dealing with borrowing money, managing small business loans, riding out the highs and lows,” Bernstein says. It’s a different reality that requires different expertise. 

Even within the entrepreneur category, he warns against lumping clients together. “The entrepreneur of a tech startup might be different than someone who started an HVAC company in the Midwest,” he says. “Do you have the advisors, the COIs, or the personal experience to work with them?” 

The need for a nuanced approach extends to multigenerational families. Bernstein sees a shift underway, with older generations becoming more open about wealth transfers. 

“The more open communications they can have, the better strategies can be created,” he says. Increasingly, families are choosing to gift wealth now rather than waiting for estate plans to trigger distributions. “Why am I waiting to give this money to my children? You’re all adults… I get the enjoyment of doing that now,” Bernstein says. 

At every level – from entrepreneurs to families – Bernstein’s view of the modern advisor comes back to one word: leadership. It’s no longer enough to rely on credentials or traditional planning scripts. 

“You can’t become an expert in something overnight,” Bernstein says. “Eight credits of a continuing education course isn’t going to cut it.”