Successfully Advising High Net Worth Clients During Wealth Transfer

As a financial advisor you’re well aware of the Great Wealth Transfer, but leaving a legacy is a topic that may resonate with some clients more than others. For high net worth clients and prospective clients, conversations about legacy are an opportunity for financial advisors to demonstrate their value and deepen relationships.

By 2048, asset-holders are expected to transfer around $124 trillion, with $105 trillion flowing to heirs and $18 trillion to charity. And as those assets begin to change hands, demand for financial advice is growing exponentially. In fact, 51% of U.S. financial advisors noted that their clients initially engaged with them because of inherited assets. High net worth clients are the most eager, raising the issue of wealth transfer at twice the rate of core clients.

But to successfully navigate these conversations and grow relationships with high-net-worth clients, financial advisors need support from the firms behind them.

Wealth transfer and building a multi-generational practice

Preserving client relationships through a wealth transfer is a critical way for financial advisors to build their practice, particularly with high net worth clients. Providing sophisticated personalized advice during transition deepens trust and can endear a financial advisor to multiple generations of clients in a family.

At Edward Jones, our Generations offering helps financial advisors support high net worth clients through complex conversations and planning — all with a long-term approach that protects the family’s values and sets them up for success. After all, about 70% of financial advisors say their clients want to pass on financial responsibility and literacy as part of their legacy.

The resources financial advisors need to help clients manage wealth transfer

Wealth transfer starts with clarity. According to a recent Edward Jones survey, among households with more than $5 million in assets, 57% have begun or are preparing to transfer wealth. For many, it’s about more than just numbers: 62% of affluent Americans say leaving an estate for their heirs is an important long-term goal, and 30% plan to give assets to their heirs during their lifetime.

Financial advisors who can connect these priorities to actionable strategies are better positioned to serve as partners.

Generations is built on Edward Jones’ philosophy of deep, personal relationships, enhanced by a network of planning, estate, tax and other professionals who work together in service of clients. Our financial advisors can access advanced planning tools such as tax, estate and trust strategies, investment management, business succession planning, philanthropic solutions and more—all under one roof.

“My high net worth clients are focused on their legacy and seek advanced planning to help them achieve those goals,” said Jesse Abercrombie, an Edward Jones financial advisor in Plano, Texas. “Many firms can meet the needs of high net worth clients, but we’re unique because we put the financial advisor at the center of the planning team. Our relationships and experience help us know what’s most important to clients.”

Our platform also provides the products and flexibility high net worth clients expect. This includes access to alternative investments and products such as SMAs that provide customizable, tax-efficient portfolio options. We currently have more than 130 SMAs, with plans to ramp up to 225 by the end of the year.

Staying ahead of the Great Wealth Transfer

The Great Wealth Transfer will continue to shape client priorities for years to come. With Edward Jones’ Generations offering, our financial advisors have the opportunity to meet the needs of high-net-worth clients, preserve multi-generational relationships and grow their practices.

If you’re interested in learning more about how Edward Jones financial advisors support high-net-worth clients, visit our Careers page for more information.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult with your tax advisor or CPA on all tax-related matters and with your attorney on all legal matters before taking any action suggested through the Edward Jones Generations suite of products and services.