Displaying items by tag: practice management

LPL Financial’s new Advisor Growth Study (AGS) analyzed six years of data from more than 14,000 advisory practices to uncover the behaviors that drive consistent, sustainable growth. Using supervised machine learning and explainable AI, LPL developed the Advisor Growth Index, a diagnostic tool that benchmarks advisor performance across client acquisition, development, and retention. 

The research found that firms demonstrating even two of the four core growth habits outperformed peers by fivefold. These high-growth advisors build a strong foundation by focusing on scalable operations and long-term clients, with a balanced client age mix under 60 and fewer than 35% in decumulation. 

They also segment clients strategically, prioritizing service to those with high assets or complex needs, while maintaining deep engagement with existing relationships to strengthen retention and generational continuity. 

Finsum: Data-driven client acquisition, leveraging M&A, digital marketing, and centers of influence, can help grow new client assets.

Assets under management is one way to value an advisory firm, but buyers also want stability, leadership depth, and client retention. Consultant Linda Bready, author of The Exit Equation, says successful sales depend on seven “pillars,” including clear exit goals, strong financials, next-generation leadership, scalable operations, client stability, effective technology, and reduced compliance risks. 

Buyers look for firms that can run smoothly without the founder and have systems in place to support future growth. To prepare, Bready advises advisors to organize their financials, document processes, and consider continuity beyond the founder. 

She also stresses the importance of knowing what life after the sale will look like, since that influences buyer fit. 

Finsum: Asking pointed questions of potential buyers and addressing risks upfront can strengthen both valuation and trust in the process.

High-net-worth clients face financial challenges that extend far beyond investing — from tax strategy and estate planning to philanthropic giving and risk management. The tricky part is, they often don’t realize what’s missing until something goes wrong. 

That’s where an advisor steps in — not necessarily as an all-knowing expert, but as a skilled generalist who knows how to ask the right questions and rally the right specialists. The best advisors lead like point guards: coordinating tax professionals, estate attorneys, and insurance experts to keep the client’s entire financial picture aligned. 

They play offense and defense — identifying blind spots, managing risks, and preparing families for wealth transfer long before a crisis hits. 

Finsum: With the right team, proactive mindset, and a client-first playbook, you can position yourself as the go-to strategist for high-net-worth households.

Artificial intelligence is rapidly becoming a fixture in the financial advisory space, with over three-quarters of firms already using or exploring it. Rather than viewing AI as a threat, advisors should see it as a valuable ally that enhances efficiency and allows more time for meaningful client engagement. 

AI tools can streamline research, summarize documents, and provide fast answers to complex client questions, saving hours of manual effort. During meetings, AI-driven transcription services like Zoom AI Companion and Jump AI can capture notes and action items, allowing advisors to stay fully present. 

In marketing, platforms like Canva and Mailchimp now use AI to create polished content quickly, while tools like ChatGPT can also help formalize internal documentation and standardize processes.

Finsum: By embracing these tools, advisors can elevate service quality, boost operational efficiency, and increase the long-term value of their firm.

Vanguard has introduced a generative AI-powered tool designed to help financial advisors create personalized, compliant client communications more efficiently. The tool generates tailored summaries of Vanguard’s most-read market insights, adjusting for client knowledge level, life stage, and preferred tone. 

It also automatically includes the appropriate disclosures, streamlining the compliance process. Lauren Wilkinson, head of advisor technology, emphasized that this beta-tested tool reflects Vanguard’s broader push to integrate innovative technologies that support both advisors and clients. 

Beyond AI, Vanguard is also exploring cutting-edge fields like spatial computing, quantum technology, and blockchain to enhance investor outcomes and deliver deeper personalization.

Finsum:  AI can enhance advisor effectiveness by enabling more customized and meaningful client interactions.