2024 has been a wild ride, and next year is sure to offer both opportunities and challenges for forward-thinking wealth management professionals.
According to the newly-released InspereX Pulse 2025 Outlook Survey, 67% of Advisors said they expect the S&P 500 to be up 10% or more by year-end 2025, while some 80% expect to see some sort of correction, and 72% stated they’re likely to add downside protection strategies to client portfolios in 2025.
Now is the perfect time to reflect, recalibrate, optimize your practice, and take proactive steps to ensure continued growth and success.
Audit Your Business Operations
Before embarking on new initiatives, assessing the past year’s wins and losses is essential.
A thorough evaluation of your practice will provide valuable insights into areas of strength and weakness:
- Enterprise health: Analyze revenue, expenses, and profitability. Look for recurring trends and areas where cost-cutting measures could be implemented if needed.
- Client relationships: Evaluate your client satisfaction, retention rates, and the effectiveness of your client communication framework.
- Marketing and branding: Assess the impact of your firm’s marketing efforts and brand awareness. Consider refining your message and re-evaluating your target audience.
- Technology and efficiency: Review the efficiency of your technology stack and operational processes. Identify opportunities to maximize new platforms powered by machine learning, streamline workflows, and improve productivity.
- Compliance check: Ensure you’re meeting SEC and FINRA regulations, particularly if you’ve recently transitioned to an RIA model. Update your ADV filings and ensure all marketing materials are compliant.
- Staff performance: Conduct year-end reviews for your team. Acknowledge successes, address areas for improvement, and set goals for the coming year.
Businesses across every sector face a pivotal year ahead. The financial services landscape promises to evolve rapidly, and client priorities will shift accordingly in a competitive marketplace. It’s essential to embrace adaptability and fluid decision-making for the coming year.
Become Client-Centric
A volatile market throughout 2024 and current global uncertainty means savvy Advisors should pay special attention to their clients’ pain points and focus on delivering an unparalleled customer experience in 2025.
Add to your value proposition with an in-depth analysis of their current mindset, risk tolerance, and investment goals. Rebalancing can help mitigate volatility and capitalize on growth opportunities. Identify clients who may benefit from tax-efficient repositioning, charitable giving, or loss harvesting before year-end.
AI leveraged to enhance hyper-personalization will be another major theme of 2025. However, Advisors should be wary of depending too heavily on robot-powered platforms.
“AI fatigue” is a real thing, and consumers are regularly bombarded with bots, scams, and off-putting AI-generated communications that lead straight to the Uncanny Valley. Take the time to give your clients invaluable individualized attention, and strengthen every relationship with active listening.
Many younger investors are dealing with aging parents, kids, lingering student loans, medical bills, side hustles, and certain levels of financial illiteracy. They want an Advisor who can do more than recommend the right tech stocks — many clients crave holistic and comprehensive frameworks for planning their family’s future.
Explore Your Opportunities
For those seeking new horizons, more freedom, and better work/ life balance, the end of the year can be an ideal time to assess your situation and consider new possibilities.
Whether you’re considering an Independent move to a boutique RIA firm or starting your own independent practice, professional consultation with a firm such as TERRANA GROUP as well as careful planning while choosing the level of support you will need is absolutely essential.
The holidays are always hectic, but it’s vital to create room for self-assessment and reflection. Stagnation can lead to unhappiness and your clients deserve an Advisor who is fully committed to their success.
Continuing education and skill-building are essential for growth in the wealth management space, especially if you have your sights set on change in the coming year. Register for live events in 2025 to network with peers, stay abreast of the latest trends, and gain insights into exciting new opportunities.
Embrace Expert Guidance
The financial services industry is facing a seismic shift in 2025, and the best way to strategically position yourself is by partnering with the senior consultants at TERRANA GROUP.
While thorough research and planning are the keys to success, having an expert guide gives you a competitive edge. Making the move from a behemoth or old-fashioned wirehouse to an RIA, hybrid, or turn-key model can feel overwhelming, but our team is here to help you overcome the fear gap and find the perfect fit.
For more than 32 years, TERRANA GROUP has been involved in over 3000 professional placements for Advisors, with client assets transferring to the hiring firm exceeding $100 billion. Our greatest strength is relationship-building — let’s start the conversation today!
