More investors will seek comprehensive financial planning

Advisors expect that 54% of clients will receive ongoing comprehensive planning advice by 2027, up from the current 48%, according to the latest Cerulli Edge—U.S. Advisor Edition.

A comprehensive financial plan covers a client’s entire financial situation, explained Noah Serianni, research analyst at Cerulli Associates. Examples of comprehensive financial services include retirement income planning, tax planning, estate planning and education funding, among others. “These services are important to clients because they now expect more than just basic investment management from their advisor, and they want an advisor who can serve their full financial life,” he said.

Factors driving the change

What might be some of the reasons for this change?

“Investment management is commoditized, causing advisors to expand their financial planning capabilities to further differentiate themselves,” said Serianni. “High-net-worth investors are particularly interested in advanced planning services, such as estate and tax planning. Advisors are increasingly offering these services, either in-house or by outsourcing, to move upmarket and grow their practice organically,” he said

Benefits of offering comprehensive financial planning

What are some of the most important benefits of comprehensive planning services for advisors? Serianni pointed out that Cerulli’s survey of financial advisors revealed the top-reported benefits of providing comprehensive financial services include stronger client relationships, increased client referrals and increased client retention. Respondents also cited the importance of the “technology stack.”

Technology plays a major role in allowing advisors to effectively scale their financial planning services as they grow their business, Serianni said. This is important to the end investor as well, as robust platforms are increasingly valued by investors.

“Technology is a critical part of financial planning, particularly when engaging younger retail investors who are used to, and highly value, the easy-to-use online brokerage platforms on which they may have accumulated their assets,” Serianni added. However, he pointed out that technology can also pose difficulties for advisors — 58% reported that their financial planning technology lacks key features, functionality or integrations.

Retail investors represent a fast-growing segment, and financial advisors of all sizes would be wise to segment and expand their capabilities to match the growing expectations of these investors for comprehensive, technology-enabled financial advice, Serianni said.

Another fast-growing segment

Another group that is growing quickly consists of consumers who are low- and moderate-income investors.  According to a survey by The BlackRock Foundation and Commonwealth, more than 54% of Americans living on low and moderate incomes (household incomes ranging from $30,000 to $79,999 annually) are currently retail investors in the capital markets. And among this group, more than half are new investors who began investing within the past five years.

The survey said that more than one-third of investors living on low and moderate incomes who have entered the capital markets in the last five years plan to invest long-term, for at least 11 more years. Eighty percent of this cohort also plan to continue investing for at least three years or more. Individual stocks are the most commonly held assets by newer investors. More than one-third of them hold exchange-traded funds and 34% have mutual funds. This distribution highlights an opportunity to strengthen investor education on diversification practices, the survey revealed.

In addition, newer investors are primarily driven by long-term goals. When asked to identify their current investment goals, of which they could select more than one, the most chosen goals were: retirement (37%), money for the future (35%), reducing financial stress (27%), and more money for their children/family (27%). And 79% of newer investors are both investing in retail markets and saving for retirement.

Challenges encountered

What are some of the challenges faced by this group? More than one-third reported pausing investing at some point, according to the survey. Uncertainty about what to invest in is the top reported challenge for respondents who are newer investors. Other reported challenges include concerns about risk, slow portfolio growth, and balancing investing with monthly and emergency expenses.

This recent surge in participation among low- and moderate-income investors marks a pivotal opportunity, the survey said. Millions of consumers who did not previously participate in financial markets have stepped in — and they’re doing so with long-term goals in mind.

The survey, which examined retail investments outside tax-advantaged retirement 2020 accounts, was conducted in January 2025 with more than 2,750 respondents, all of whom are individuals from households on low and moderate incomes ranging from $30,000 to $79,999 annually.

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