Adapting to clients’ ever-changing needs and expectations can be challenging. To deliver what clients are looking for today, some RIAs are choosing to adopt a holistic business strategy and offer services such as banking and advanced financial planning. Transitioning into a holistic advisor can be a smart move for businesses. Here’s a look at 10 stats that highlight the demand for comprehensive financial support, and why this path can pay off for advisors:

Investment Advice Has Become a Commodity

The rise of digital advice platforms and robo-advisors is making it more important for advisors to provide value beyond investment advice.

  1. Robo-advisors’ assets are expected to reach beyond a half-trillion dollars by 2023.

(Source: Investment News)

  1. Another projection suggests even more, with robo-advisors’ assets possibly reaching $1.26 trillion in 2023.

(Source: Investment News)

Retirement Planning Has Become More Complex

Clients are living longer and need more advanced planning strategies to ensure they don’t outlive their assets.

  1. Over the last four decades, life expectancy in the United States has increased and is currently 78.9 years.

(Source: Centers for Disease Control and Prevention, via US News and World Report)

  1. A quarter of 65-year-olds will hit age 90, and one in 10 will live beyond age 95.

(Source: US News and World Report)

  1. While Americans often expect to be able to live on 80 percent of their prior income when retired, many retirees need more because of medical expenses and other lifestyle factors.

(Source: AARP)

Wealth Is Starting to Pass from Baby Boomers to Their Children

As baby boomers continue to age, RIAs will see more wealth transfer from clients to their children. To retain clients, advisors will need to ensure they can meet the needs of their clients’ family members.

  1. By 2061, $58.1 trillion will have moved from one adult population to another.

(Source: Deloitte Research)

  1. Wealth transfers from one generation to the next have historically resulted in 90 percent of heirs changing advisors.

(Source: Deloitte Research)

The Weight of Educational Expenses Has Become Heavier

Many Americans pay back student loans for decades and have to choose between paying off college debt, saving for retirement, and saving for their children’s college — which makes financial lifestyle advice even more valuable.

  1. Since 1980, tuition and fees at four-year public colleges and universities have risen 19 times faster than the median family income in the United States.

(Source: CNBC)

  1.  On average, it takes Americans 21 years to pay off student loan debt. Here’s a breakdown of the average time to repay student loan debt based on the degree type earned:
  • Some college (no degree): 17.2 years
  • Associate degree: 18.3 years
  • Bachelor’s degree: 19.7 years
  • Graduate degree: 23 years

(Source: Credible)

  1. The monthly amount of a student loan payment for borrowers in the U.S. is between $200-299.

(Source: Federal Reserve)

As these stats demonstrate, there are multiple trends driving the demand for holistic financial experiences.

Of course, RIAs that are interested in broadening their services need to consider several things. For example, becoming a holistic advisor requires RIAs to be open to change and to work with a flexible custodian that supports a wide variety of products — from banking to alternative investments and everything in between.

So, before choosing this path, RIAs need to make sure they are working with a custodian that can support their move with the right solutions. In some cases, RIAs looking to branch out may realize that their current custodian is not well-suited to help them transition into the type of business they want to become — and a change is necessary.

RIAs that are interested in evolving into more holistic advisors should know that the transition is easier with a supportive custodian. For a closer look at why some RIAs are choosing to provide holistic financial experiences and how custodians are making that possible, download this eBook: Becoming a Holistic Advisor. And, to learn about the many ways Axos Clearing helps RIAs provide comprehensive client experiences, schedule a free consultation.


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