Displaying items by tag: clients

In today’s market, financial advisors can show real value by building actively managed, customized portfolios using low-cost passive ETFs instead of pricier active funds. A core-and-satellite approach — with an S&P 500 ETF at the center and defensive sectors, bonds, and gold ETFs as satellites — has proven particularly effective in 2025, outperforming the broader market. 

Strategic rebalancing between the outperforming satellites and a weakening core has been key to managing risk and enhancing returns. Defensive ETFs like XLP, XLU, and XLV, along with bond funds like AGG and SGOV and the gold-focused GLDM, have offered strong, risk-adjusted performance this year. 

This flexible framework allows advisors to adjust portfolios to market conditions, client goals, or macroeconomic shifts while keeping costs low and transparency high. 

Finsum: Ultimately, it strengthens the advisor’s role as an active, thoughtful manager of client wealth without relying on expensive fund managers.

As the wealth landscape evolves, the number of high-net-worth individuals is on the rise. And that means financial advisors who can cater to their complex needs will be in high demand. Are you prepared to meet the challenge?

Our infographic provides key strategies to help you become the go-to advisor for these discerning clients, such as:

• Leveraging professional designations
• Offering diverse financial strategies
• Using technology as a service tool

Are you ready to seize this growth opportunity? Transform your approach to serving high-net-worth clients today.

Download the infographic here.

Commonwealth Financial Network®, Member FINRA/SIPC.

Focusing on others can be challenging, as our brains are naturally wired to center on self-related thoughts and needs. Research by Shenbing Kuang highlights this tendency, showing that our attention defaults to self-focus, which can hinder effective communication, especially in client interactions for financial advisors. 

Self-focus is linked to activity in the medial prefrontal cortex, while focusing on others activates a different brain area, the temporoparietal junction; however, the prefrontal often dominates, drawing us back to self-related concerns. 

Advisors can counter this bias through mindful awareness and empathy, training themselves to recognize inward shifts and refocusing on clients' needs. By consciously practicing empathy and active listening, advisors can enhance their client relationships, building trust and understanding.

Finsum: This is a great way to focus on personal growth as an advisor and find a way to form deeper connections with clients. 

Artificial intelligence is becoming crucial in financial advisory operations, automating tasks and enhancing efficiency. This allows advisors to focus more on client interaction and strategic work.

 AI leverages big data and advanced analytics to identify patterns, detect market trends, and anticipate client needs with greater precision. Consequently, clients receive more personalized advice and recommendations. 

Additionally, integrating various financial technologies enhances client engagement and produces better outcomes. The rise of open architecture ecosystems enables the integration of best-of-breed solutions tailored to a firm’s specific needs.

Finsum: AI tools can be used for simpler tasks like client outreach and personalization but also for more advanced tasks like portfolio construction. 

The nature of being a financial advisor has shifted significantly over the past decade. It’s gone from being centered around selecting investments and managing portfolios to financial planning and client service. Model portfolios have been ascending along with this evolution and are forecast to exceed $1 trillion in assets over the next decade.

According to surveys, clients invested in model portfolios are more likely to have higher levels of trust with their financial advisors and believe that volatility is an opportunity to grow assets. Additionally, they are more likely to be interested in other services offered by an advisor. They can also help in terms of aligning the interests of advisors, the firm, and clients. They also free up time and energy for advisors to spend on factors that ultimately drive success for advisors, like client service and prospecting. 

Another benefit is that model portfolios provide an extra layer of due diligence, with 77% of advisors saying that they help with managing risk. In essence, it gives clients access to a higher quality of investment management and a more comprehensive relationship with an advisor.

Models also mean that advisors’ services become more scalable, enabling growth and expansion. In recent years, models have expanded to include offerings from third parties and a wider array strategies, which means there are possibilities for endless customization to fit clients’ unique needs and goals.

Finsum: Model portfolios bring the promise of a win-win for clients and advisors. Clients invested in model portfolios report higher levels of confidence with their advisor and don’t fear volatility. For advisors, they offer the ability to decrease time spent on investment management and focus more on client service and prospecting.