Maybe it's because there was a large employer nearby. Perhaps a new sport had emerged. Or it could have been a personal struggle that translated into a professional opportunity.
Whatever the reason, many financial advisors have taken the plunge into specialization and found taking the risk rewarding.
And while generalists may worry they're leaving money on the table by sharpening their focuses so drastically, those who serve smaller client segments said they would never go back.
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Deciding to specialize
Thomas L. Cook, founder and financial planner at
"I didn't always know I would be this narrowly focused, but it evolved as I was preparing to launch my own RIA," he said.
While he was working for another firm, his favorite client was a couple from Tellico Village who were pickleball enthusiasts. He had personally been playing pickleball since 2017, and he wanted to attract more clients like them.
"Most pickleball players have an active lifestyle and are friendly, making them a perfect group of people I love to be around," he said.
Even though this sounds like a small group, the retirement community's pickleball group has over 1,000 members.
"Thinking I only need to serve 5% of that community has helped me have an abundance mindset," he said.
Lili Vasileff, president of
"This niche remains underutilized and underappreciated," she said.
Cook said the focus has aided his marketing efforts. He paid for a professional pickleball player to do two clinics in the morning with 16 members each. Afterward, they held a match called "pickleball pro vs. local legends," which had 100 people in attendance. This led to him being invited to even more local pickleball groups throughout the week. He's even about to launch his pickleball-themed podcast, "Match Point: How To Win The Money Game."
"Despite being less than a year into building my firm, the power of a niche is proving to be real," he said. I'm gaining traction much quicker, and more importantly, with the people I want to serve."
Chad Holmes, founder of
"I used to serve a general client base but found my marketing to a general audience was lost in the noise of every other advisor's generalized content," he said. "I hate the idea of not being able to help everyone. I had to accept the fact that to run an efficient solo practice and enjoy time with my family, I had to set boundaries. In doing so, I can streamline my services better and not be so hodgepodge like I was in the beginning."
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Rob Schultz, senior partner at
"It worked out for me as a young advisor but could be considered delayed gratification as they're typically paying off student loans and saving for a house first before they start investing large sums of money," he said.
Bryan Courchesne, CEO and founder of
"It is still an overlooked sector compared to traditional assets," he said.
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'You get me'
Uziel Gomez, the founder of
"I understand the struggles of being a first," he said. "First-generation Americans are children of immigrants who typically are the first in their family to graduate college, first to be professionals and first in their family to build wealth."
Dr. Cobin Soelberg, founder and principal advisor for
"As a physician, we immediately have a sense of trust that otherwise takes years to build," he said. "I know the specific financial challenges my colleagues face. I know about the crushing burden of six-figure student loan debt. But even more, I understand what it is like to study and train for 10-plus years. I understand what it feels like to watch a patient die on the operating table. I know the exhaustion of being up for 24 hours straight on call. And these connections help me serve my clients better."
Daniel M. Kopp, a financial planner with
"Cold leads quickly turn to warm as they say things like, 'You get me,'" he said. "If anything, I will only be getting deeper and deeper into the niche of Gold Star Widows. I've even started handing off some of the non-niche clients in the past year so I can add even more of the niche-focus clients."
Jay Zigmont, CFP and founder of
"We've found that about a third of our introductory meetings end up in tears," he said. "We asked our prospects why, and they told us it was the first time they felt heard and seen. It is powerful to be there for people who otherwise may not be served, heard and seen."
Advice to others
Matt Smith, founder and lead advisor of
"You must do this," he said. "It seems scary, but it is a great differentiator. The key is being able to get yourself in front of your audience."
Ed Snyder, co-founder of
"Get good at knowing what things impact the group you want to work with and then put yourself out there in front of them as a resource to provide the information to help them," he said.
Holmes said advisors choosing a specialty don't have to pick age, employer, religion or industry as their niche.
"It can be any unique problem you like solving," he said.
Megan Kopka, managing partner at
"Advisors should consider specializing if they have a personal connection to a niche or see a specific need that isn't being adequately addressed," she said.
Kevin Estes, founder and financial planner at
"Other financial planners could benefit from specialization," he said. "A clear signal works. Noise doesn't. People just outside the niche will join if enough resonates."
Kopp said that despite the upsides of specialization, it can be difficult to break into the market at first. However, once the word gets out, the benefits become obvious.
"Initially it can be difficult if you aren't already known, trusted and liked in the niche space," he said. "It can take a few years to build that expertise or demonstrate it enough in public to attract those clients. But once that flywheel picks up a few years in, the momentum just keeps growing."