How Advisors Can Thrive by Embracing Holistic Financial Planning

Introduction 

The U.S. wealth management industry is at a pivotal moment. As clients increasingly seek comprehensive guidance—including tax, retirement, estate, and life-stage planning—advice revenues have soared from around $150 billion in 2015 to $260 billion in 2024. 

Yet, this demand is colliding with a talent crunch. By 2034, the industry faces a projected shortage of 90,000–110,000 advisors unless structural change occurs.

 

Insight:
To thrive, forward‑thinking advisors must adopt a holistic approach—not just to serve more clients, but to stand out, drive productivity, and attract the next wave of talent.

 

The Holistic Imperative: Why the Time Is Now 

• Demand dynamics: 52% of affluent clients now seek comprehensive planning—up from 29% in 2018

• Value premium: Nearly 80% are willing to pay at least 50 bps more for human, holistic guidance 

• Advisor shortage: Headcount growth slowing to –0.2% annually; retirement expected to outpace hiring

Key takeaway: Clients need more, and fewer advisors are available—holistic practice is a competitive edge.

 

Redefining the Advisor Role: From Product Sellers to Life Coaches 

• Evolving scope: McKinsey expects the future advisor to become a “life and wealth coach” offering deep, analytically driven, multilayered advice.

• Holistic services to integrate:

  • Investment planning

  • Tax optimization

  • Estate and legacy structuring

  • Insurance and risk planning

  • Lifestyle and personal financial wellness

• Business model implications:

  • Fees tied to comprehensive planning, not just AUM

  • Future-proof branding based on trust and depth

 

Strength Through Scale: Productivity Wins for Holistic Practices

• Three productivity levers McKinsey emphasizes:

  1. Lead gen centralization → frees up 3–4% advisor capacity

  2. Team-based model: Teamed advisors manage ~20% more AUM than solos 

  3. Tech & AI integration: Gen‑AI boosts load by 7–15%, automates proposals, compliance, and insights

• Workflow in action:

  • Automated financial planning engines

  • Client portals, self-service tools

  • AI-assisted reporting and rebalancing

  • Workflow automation for onboarding, compliance, and event tracking

Goal: Deliver deeper advice without increasing headcount—critical in the face of advisor scarcity.

 

Attracting & Retaining Talent in a Shifting Landscape 

• Talent pipeline crisis: 110,000 advisors (~42% of assets) set to retire in a decade 

• Hiring gap: Industry must recruit 30k–80k net new advisors vs only ~8k over the past decade 

• Best-fit recruitment strategies:

  • Campus partnerships, internships, rotational programs within multi-disciplinary teams 

  • Tapping career-switchers—CPAs, attorneys, veterans, sales pros 

  • Promoting diversity: women now 15% of advisors; 60% of grads are female

• Retention via development: Structured mentorship, clear growth paths, emphasis on service roles vs product pushing

 

Designing Your Holistic Practice Model 

• Step-by-step plan:

  1. Holistic audit: Assess your current service coverage, identify gaps

  2. Modular offering creation: Define tiered packages—from planning-only to ultra-comprehensive

  3. Build multi-disciplinary teams: Onboard specialists (tax, insurance, estate) to supplement advisors

  4. Enable with tech: CRM, financial planning software, secure portals, AI tools

  5. Train & develop: Bring your team up to speed in holistic planning, behavioral finance, client experience

  6. Marketing for position: Promote your holistic identity through branding, digital channels, and referrals

• Case study highlight: Example advisor who integrated tax, estate, and risk planning, doubling engagement rates in 12 months

 

Overcoming Objections & Roadblocks

• Time constraints: Use tech and delegation to offset the new scope

• Financial modeling fears: Start small with add-on services before full integration

• Tool concerns: Leverage trusted platforms—e.g. iVaultx with eMoney, RightCapital, Advizr, and AI tools like Redwood Payments

• Regulatory considerations: Update agreements and ensure compliance measures align with expanded service offerings

 

Call to Action 

 As demand intensifies and advisor supply shrinks, becoming a holistic advisor is more than an advantage—it’s essential. Invite readers to:

• Download your full Holistic Advisor Guide

• Contact your firm to explore where you stand as a firm. Use this comparison matrix for reference.

• Attend webinars or training sessions on wealth-tech integration

References

McKinsey & Company. (2020). The future of US wealth management: Imperatives for success. Retrieved from https://www.mckinsey.com

McKinsey & Company. (2025, February). The looming advisor shortage in US wealth management. Retrieved from https://www.mckinsey.com