Envestnet Whitepapers

Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 1 Table of Contents SUMMARY AND KEY FINDINGS ............................................................. 3 INTRODUCTION........................................................................................... 4 METHODOLOGY ............................................................................. 4 WHY FINANCIAL WELLNESS MATTERS AND HOW ADVISORS NEED TO CHANGE THEIR PRACTICES ................................... 5 FINANCIAL PLANNING IS FOUNDATIONAL.......................... 6 THE INTELLIGENT FINANCIAL LIFE ADVISOR PRACTICE SCORE .............................................................................................................. 9 HOW ADVISORS BENEFIT FROM DELIVERING AN INTELLIGENT FINANCIAL LIFE ........................................................................... 14 CONCLUSION ............................................................................................ 17 APPENDIX: THE METHODOLOGY BEHIND THE INTELLIGENT FINANCIAL LIFE ADVISOR PRACTICE SCORE ................... 19 ABOUT AITE-NOVARICA GROUP ...................................................... 22 CONTACT....................................................................................... 22 AUTHOR INFORMATION .......................................................... 22 List of Figures FIGURE 1: U.S. HOUSEHOLDS' USE OF FINANCIAL PLANNERS FOR INVESTMENT AND BORROWING ADVICE .................. 6 FIGURE 2: TRADITIONAL FINANCIAL PLANNING'S EXPANSION INTO FINANCIAL WELLNESS ..................................................... 7 FIGURE 3: DISTRIBUTION OF ADVISOR PRACTICE SCORES ... 11 FIGURE 4: AVERAGE SCORES FOR THE FIVE COMPONENTS OF ADVISOR PRACTICE SCORES, BY ADVISOR TYPE .......... 13 FIGURE 5: MEDIAN AND AVERAGE AUM FOR TOP-QUARTILE AND BOTTOM-QUARTILE ADVISORS ................................. 14 FIGURE 6: CORRELATION BETWEEN ADVISOR PRACTICE SCORES AND CLIENT FINANCIAL WELLNESS OUTCOMES ................................................................................... 21 Sept ember 2022 Taking the Measure of Advice The Intelligent Financial Life Advisor Practice Score and How It Benefits Advisors' Practices

• Cover
• SUMMARY AND KEY FINDINGS
• INTRODUCTION
• METHODOLOGY
• Why financial wellness matters and how advisors need to change their practices
• Financial planning is foundational
• The Intelligent Financial Life ADVISOR PRACTICE score
• How advisors benefit from delivering AN INTELLIGENT FINANCIAL LIFE
• Conclusion
• Appendix: the methodology behind the Intelligent Financial Life Advisor Practice score
• Appendix: the methodology behind the Intelligent Financial Life Advisor Practice score (1)
• Appendix: the methodology behind the Intelligent Financial Life Advisor Practice score (2)
• Appendix: the methodology behind the Intelligent Financial Life Advisor Practice score (3)