The Essential Advisor: Building Value in the Investor–Advisor Relationship

The ESSENTIAL ADVISOR

There is a growing gap in the investing industry that has left advisors increasingly confused about what clients want and clients equally confused about what advisory firms can do for them. The Essential Advisor clears the air on both sides by including the client′s perspective of financial services while laying out a concrete framework every advisor can use to better communicate his or her value.

Automation is part of the new investing landscape, but computers alone can′t manage and grow wealth as well as a human being skilled at leveraging digital tools. The easy–to–follow, conversational style in this refreshing guide shows you how to deliver the transparency, hands–on interaction, and around–the–clock access of robo–advisors, along with the consistent, better–than–expected returns of personal judgement. Every chapter conveniently includes key takeaways and a standalone section diving into the client′s perspective on the covered topic in order to enhance learning and provide a quick reference. Advisors who follow the principles outlined here and commit to crossing the digital divide between themselves and investors immediately increase in value and quality of service to current clients and attract potential clients looking for customer–centric wealth management. The book also brings realistic and refreshing insights for consumers on what they should expect in a relationship with an advisor. This complete guidebook allows advisors and investors to:

Close the trust gap between the parties by applying experienced insight, best practices, and digital techniques Identify the new technologies advisors should leverage and clients should expect to drive an outstanding investor experience Deliver better outcomes to clients by gaining efficiencies to invest more time in client relationships

The financial services industry is evolving, and adapting isn′t hard when you have experts guiding you through it. The knowledge transferred in this book shines a spotlight on the importance of good financial advice now and into the future, built around The Essential Advisor.

Foreword by Jean Chatzky ix

Preface xiii

Acknowledgments xv

Chapter 1 The Evolution of Financial Advice 1

Chapter 2 The Evolution of Complexity 19

Chapter 3 The Digital Divide: Napster or Amazon? 43

Chapter 4 The Pillars of Value 57

Chapter 5 Communicating the Essential 75

Chapter 6 Building the Essential Relationship: Who Are You Going to Call? 109

Chapter 7 Success in the Digital Revolution 127

Chapter 8 Maximizing Value 145

Chapter 9 Finding the Essential Advisor 167

The Last Word by Jud Bergman 179

About the Interviewees 185

About the Authors 193

About the Contributors 195

Index 197

BILL CRAGER is the president and cofounder of Envestnet, where he leads platform, product, and marketing strategy. He has been a driving force behind the firm′s sixteen–year rise to be the leading managed solutions service provider in terms of total platform assets and financial advisors served.

JAY HUMMEL is managing director, Strategic Initia–tives and Thought Leadership at Envestnet. Hummel leads the firm′s advisor training, consulting, and content development activities. Prior to joining Envestnet, he was the president and COO of a large RIA based in Cincinnati, Ohio.