LPL Financial Services Expansion for Advisors

LPL Financial, headquartered in San Diego, has announced an expansion of services aimed at assisting financial advisors in catering to affluent clients. The company now offers advanced financial planning, estate and philanthropic planning, customized portfolio construction, and tax planning among other services, enhancing its high-net-worth offerings.

Dedicated Team of Experts

A dedicated team of experienced professionals will deliver these services to advisors. This team includes attorneys, CPAs, and veteran advanced planners who are well-equipped to address the varied and complex needs of high-net-worth and ultrahigh-net-worth families.

Empowering Advisors

Jen Hollers, Senior Vice President of Planning and Advice Services at LPL, emphasized the company’s commitment to enhancing advisors’ competitiveness in their respective markets. By offering access to a team of seasoned experts, advisors can build, maintain, and service relationships with affluent clients more effectively.

Comprehensive Solutions

Wealthy families often require more than just investment management and basic financial planning. LPL’s expanded services recognize the need for assistance in estate planning, tax planning, and charitable giving as these families prepare for wealth transfer to the next generation.

For further information on the specific costs associated with these services for advisors and clients, LPL financial has not provided immediate responses.

Evolution of Wealth Management Practices for High-Net-Worth Clients

In recent years, wealth management practices catering to high-net-worth clients have been expanding their service offerings to meet the evolving needs of this demographic. A report by research firm Cerulli Associates identifies high-net-worth investors as those with a minimum of $5 million in investible assets.

Enhanced Services for High-Net-Worth Clients

The report highlights a significant increase in the provision of services by high-net-worth practices. For instance, the percentage of practices offering estate planning rose to 70% in 2023, compared to 56% in 2017. Additionally, there was a notable uptick in the availability of tax planning services, increasing from 29% to 45% during the same period.

Growth in Wealth Among High-Net-Worth Households

According to Cerulli, high-net-worth households are amassing a substantial amount of wealth, with a total increase of over $23 trillion since 2011.

LPL’s Adaptive Approach in Wealth Management

LPL, a prominent player in the financial advisory space with over 22,000 financial advisors, has undergone a transformation since its establishment in 1989. Originally an independent broker-dealer, LPL now offers a diverse set of capabilities to cater to financial advisors in various arrangements.

Diversified Business Model

While LPL continues to support independent practices and 1099 independent contractors, the company has expanded its services to include hiring advisors as W-2 employees, acting as a custodian for registered investment advisor firms, and providing additional support to 1099 advisors in managing their practices effectively.

Strong Performance and Growth

As a publicly traded company, LPL has seen a positive trajectory in its financial performance, with shares rising by 11.6% year-to-date. The company recently reported better-than-expected earnings, underscoring its continued success in the market.

In conclusion, the wealth management landscape for high-net-worth clients is evolving rapidly, with firms like LPL adapting and innovating to meet the complex needs of this affluent demographic.