Financial advisors who connect health with wealth can tap into a better future for their clients — and for themselves, according to experts speaking at
In one panel, two advisors and a clinical psychologist discussed why it's important for planners to devote time to their own self-care in order to help their clients. In another panel, three wealth management executives explained how the field could expand its base of clients by using
The "greatest compoundable asset" is "self-worth and self-value," said Preston Cherry, who is president of the Financial Therapy Association in addition to being head of the University of Wisconsin at Green Bay's personal financial planning program and the founder of Concurrent Financial Planning.
"We're talking about giving ourselves compassion, giving ourselves some grace, investing in one's self," Cherry said. "Before we start investing in compoundable financial assets, we have to invest in ourselves."
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In a stressful profession that often consists of calming frazzled investors' nerves, experts say financial advisors
Dave Welling, the CEO of $37-billion RIA consolidator Mercer Global Advisors, cited research suggesting that advisors spend only a "shocking" amount of 17% of their
"We're in a golden age of financial advice, particularly fiduciary based advice that's aligned around the client's interest," Welling said. "The role of the advisor, as it evolves, just becomes more human. They become more connected with the client and I think not less technical, but maybe relying on other technical people or applications or technology behind the scenes to do work that typically has been in the hands of the advisors."
A practice management-focused startup RIA consolidator named Journey Strategic Wealth advocates for advisors spending 80% of their time with clients and prospects, according to the Summit, New Jersey-based firm's president, Penny Phillips. She argued that the emphasis on tech with the constant discussion of tools such as artificial intelligence and new software can sometimes distract from the main function of a practice.
"Advisors need to be mindful of the consumer and the client and the changing preferences and needs of the client," Phillips said. "Regardless of what advancements take place in our industry, the reality is, we say we're in financial services, but we are in the business of helping people solve problems. And we happen to deliver financial services and wealth management services to do that."
Jason Wenk, the founder of advisor tech firm Altruist, countered that only enhanced digital tools can give advisors the means to reach as many clients as possible. He mentioned Moore's law, the scientific observation that the capacity of densely integrated circuits doubles every two years. Wealth tech is "so early in the scatterplot," Wenk said.
"I really do hope and see a future where there's a really amazing huge leap," he added. "When that happens, the advisors would serve like 10 times as many people as they do today. They'll do way better work."
That goal for the future may never be reached if advisors don't first check on their own health and wellness. Financial advisor Emlen Miles-Mattingly, the founder of Madera, California-based Gen Next Wealth, host of the Minority Money Podcast and
Miles-Mattingly completed "an incredible exercise" that "basically got yourself back on track," said Phil Pearlman, the founder of a health planning and fitness company called The Pearl Institute and author of a wellness publication called the Prime Cuts Newsletter.
"You have that ability to be able to reframe yourself anytime that you want," Pearlman said. "We could do that in all different types of areas too. We can go from being, 'Hey, I'm lazy' to 'Hey, I'm really active' or 'Hey, I'm ungrateful' to 'Hey, I'm grateful.' We could do it about almost anything."
Like computers that get faster and handle more tasks, advisors will see a business impact when they consistently follow their own healthy habits, Miles-Mattingly said. Consistency is "life's cheat code," he said. In other words, an advisor's internal transformation could, in turn, alter the future of the industry.
"When I can track the days that I actually woke up, went to the gym, journaled, meditated, and read — whatever it is for me, that's my thing — I can look at those days and I can see the level of productivity changed on those days," Miles-Mattingly said. "When I know I'm going to have a good month, it's how many of those days I had, right? And those days are going to lead into what I'm trying to create, because I've been consistent."
