LPL Financial, headquartered in San Diego, has announced the expansion of services available to its financial advisors, specifically aiming to assist them in catering to high-net-worth clients.

What's New in High-Net-Worth Services?

The newly introduced services include advanced financial planning, estate and philanthropic planning, and personalized portfolio construction, in addition to the previously announced tax planning support.

Dedicated Team of Experts

LPL emphasizes that a team of seasoned professionals with expertise in the field will be providing these services. This team comprises attorneys, CPAs, and experienced advanced planners dedicated to assisting advisors in building, maintaining, and catering to high-net-worth and ultrahigh-net-worth families.

Enhancing Advisor Competitiveness

Jen Hollers, Senior Vice President of Planning and Advice Services at LPL, highlights the ease these expanded services provide for advisors to enhance their competitiveness in the market. By offering access to a group of professionals, advisors can better meet the complex needs of affluent families.

Comprehensive Support for Wealthy Families

Wealthy and ultrawealthy families often require more than just investment management and basic financial planning. These services aim to assist them with estate planning for wealth transition to the next generation, tax planning strategies, and charitable giving initiatives. Evolving Wealth Management Practices for High-Net-Worth Clients

In recent years, the needs of high-net-worth clients have been a driving force behind the evolution of wealth management practices. A report from Cerulli Associates highlights this trend, defining high-net-worth investors as those with at least $5 million in investible assets.

Expanding Services

According to the report, 70% of high-net-worth practices now offer estate planning, a significant increase from 56% in 2017. Additionally, the percentage of practices offering tax planning has jumped to 45% from 29% during the same period.

Growing Wealth Control

High-net-worth households are increasingly controlling a substantial amount of wealth, with a total increase of over $23 trillion since 2011, as reported by Cerulli.

LPL Financial: A Diverse Approach

LPL Financial collaborates with over 22,000 financial advisors. While initially established in 1989 as an independent broker-dealer, LPL's scope has expanded significantly. The company now works with financial advisors in various capacities, including hiring some as W-2 employees, acting as a custodian for registered investment advisor firms, and providing support to independent contractors.

Financial Performance

As a publicly traded company, LPL's shares have risen by 11.6% this year. The company recently reported earnings that exceeded expectations, solidifying its position in the wealth management sector.