Specialize in What Matters to Your Clients
How to differentiate yourself and your services
Survivalists may camouflage themselves in the wild to avoid danger. The RIAs who thrive are the ones who can perfectly match their clients’ needs yet stand out from the crowd of competitors—with differentiated services that attract their ideal customers and deliver on their firms’ value propositions.
Matching the Pattern of Client Demand
As client needs have evolved, financial services have evolved too. Nowhere is this more evident than the topic of tax planning. Traditionally, clients sought only technical tax information and advice, provided by CPAs. But today’s client wants more strategic tax planning guidance to navigate the tax implications related to their financial planning process—a type of guidance best provided by their financial advisor. The guidance of the financial advisor complements, and does not replace, the advice of a CPA. This is now the most requested service among advisory clients with over $250K investable assets.
Top Five Most Wanted Services
% Clients With > $250K Assets Who Request Each Service
Today’s clients with investable assets over $250K seek personalized guidance to address their greatest concerns. The majority (more than seven in 10) want help with tax planning and retirement planning.
2023 Herbers & Company Service Market Growth Study. *Among consumers with at least $250k household assets.
Do You Offer Tax-Informed Planning Services?
According to the 2024 Advisory Services Survey conducted by The American College of Financial Services, most independent advisors use tax-efficient withdrawal strategies (91%) and/or perform tax planning related to life events (78%).
Further, the study shows independent advisors generally offer the services clients demand most—with one exception: Among those who say their clients “always” or “often” request small business owner tax planning services, more than half of independent advisors (54%) are not currently providing such services. This gap represents an opportunity for applied knowledge and differentiation such as through the Tax Planning Certified Professional™ (TPCP™) designation program.
Personalizing Services in a Competitive Field
In response to evolving client needs, RIA firms offer personalized financial services across an array of applied knowledge areas, many of which are included in their asset management fees. For example, the tax planning need identified as a top request of clients ranks among the top three most offered services.
Wondering How to Personalize Profitably?
Focusing on your ideal clients will help you bring systemic, repeatable solutions to systemic challenges. Plus, the more services are included in asset management fees, the more reason to streamline certain activities to protect your margins. Check here for time-saving ideas.
Serving Clients Through Specialization
% RIA Firms With >$250M AUM Offering Specialized Financial Services
Results for all firms with $250 million or more in AUM. 2023 RIA Benchmarking Study from Charles Schwab, fielded January to March 2023. Study contains self-reported data from 1,300 firms. Participant firms represent various sizes and business models categorized into peer groups by AUM.
Did You Know?
To help with your marketing and sales differentiation, alumni of The American College of Financial Services who hold designations and are in good standing have access to an Advisor Toolkit to help educate clients and prospects about each designation we offer. Learn more about the Professional Recertification Program.
What Will You Do Next?
Adventurers are always looking for the next area to explore. Thinking about the shifts in client needs and wants, what’s the best way to get ahead and differentiate from your competitors with services that deliver? Assess your skills and interests relative to how your clients’ needs are evolving to determine where you may specialize next. It’s important to remember that going deep to demonstrate value and navigate client complexity requires knowing “a lot about a little.” Navigating with limited skills will only get you so far. The CFP® certification and ChFC® designation provide valuable foundational planning knowledge–but to specialize, you need to commit to the specialized knowledge your ideal clients need.
A Legacy of Industry Leadership
Founded in 1927 by financial services education pioneer Dr. Solomon Huebner, The American College of Financial Services has a rich history in financial services education—standing strong as the standard-bearer for academic quality.
As we approach 100 years of academic excellence, we hope that you leverage all the opportunities The College has to offer. By taking part in The College’s recertification program, you’ll be joining us on the front lines as we march the financial services industry toward a future that benefits more Americans and allows us to change more lives.
Your Life's Work
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The American College of Financial Services provides equal opportunity to students and employees, regardless of race, color, and national or ethnic origin. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
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