Issue link: https://resources.envestnet.com/i/1527487
Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 3 SUMMARY AND KEY FINDINGS This report, commissioned by Envestnet Inc. and produced by Aite-Novarica Group, provides an assessment of the delivery of financial wellness by financial advisors to their clients in helping clients achieve peace of mind and financial security regarding their ability to meet their financial needs and attain their goals across the financial household. There are several key attributes and practices financial advisors use to benchmark their financial wellness offering, including a range of services offered, breadth of advice and planning support, method and frequency of client engagement, and utilization of platforms and applications. These are the key findings from this report: • Defining financial wellness varies: Most definitions suggest that financial wellness means that one feels secure in one's ability to meet current and future financial obligations. • Strive to meeting holistic financial needs: Advisors delivering financial wellness help clients organize their resources to meet their current and future goals and build a healthy relationship with their money. Delivery of financial wellness strongly correlates with the breadth of financial advice delivered. • Financial planning is foundational: Advisors must move beyond helping with longer-term goals and address issues that affect clients' and family members' day- to-day financial lives. • Address client emotions toward money: Advisors who discuss these attitudes and behaviors produce better outcomes for their clients. • Client and family engagement is critical: Advisors should involve both spouses and engage family members, as these are key factors in delivering financial wellness. • Platform capabilities serve as a foundation: The delivery of financial wellness is meaningfully correlated with the breadth of platform capabilities available to the advisor. • Financial wellness creates client value and satisfaction: The delivery of financial wellness leads to higher levels of client and advisor satisfaction.