“Unlock Top Ideas and Insights: How Wealth Managers Are Adapting to Industry Changes and Developing New Skills”
As the wealth management field continues to evolve, advisors are seeking ways to adapt and develop new skills to meet the changing demands of their clients. One major shift in the industry is the increasing overlap between wealth management and accounting, highlighted by the updated CPA exam that now includes a section covering financial planning and retail tax services for individuals. This change reflects the growing recognition that tax planning is a crucial component of comprehensive financial planning.
According to Andy Watts, Vice President of Planning and Growth Solutions at Avantax Wealth Management, incorporating tax planning into financial planning is essential for providing clients with a complete and effective strategy. He believes that in the future, financial planning without tax planning will be considered unthinkable.
In addition to technical skills, mentorship is becoming an increasingly vital component of professional success for advisors, particularly for women in the industry. Mara Derderian, a financial and risk management professor at Bryant University, emphasizes the importance of mentorship in helping individuals navigate their careers and develop the necessary skills and qualities for success. Mentorship programs can have a significant impact on the advancement of women in finance, creating a ripple effect as successful women go on to mentor the next generation of talent.
However, the industry continues to present new challenges for advisors, such as working with polyamorous clients. Danika Waddell, founder and president of Xena Financial Planning, points out that the current tools and structures in place are not designed to accommodate nontraditional relationship structures, posing challenges for advisors in providing comprehensive financial planning for these clients.
To stay ahead in this rapidly changing landscape, savvy advisors are actively growing their toolkits and developing new skills to better support their clients. By staying informed and adapting to new challenges, wealth managers can position themselves for success in an industry that is constantly evolving.
In conclusion, the wealth management field is undergoing significant changes, with advisors needing to adapt and develop new skills to meet the evolving demands of their clients. Incorporating tax planning into financial planning, seeking mentorship, and addressing challenges such as working with polyamorous clients are all key aspects of staying competitive in this dynamic industry. By staying proactive and continuously developing their skills, advisors can position themselves for long-term success in the wealth management field.