Kitces and Carl - Real Talk for Real Financial Advisors Scaling Financial Planning Client Affluence vs. Technology Efficiencies: Kitces & Carl Ep 172
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Sep 4, 2025 Discover the intriguing dynamics between client wealth and productivity in financial advising. Explore the ethical dilemmas faced when prioritizing affluent clients over community service. Dive into income disparities within financial planning compared to medicine, highlighting how market forces shape career choices. Learn about the strategic advantages of serving high-net-worth clients and the significant influence of client affluence on advisory outcomes. This thought-provoking discussion raises key questions about balancing financial incentives with ethical responsibilities.
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Affluence Beats Tech For Productivity
- The single biggest driver of advisor productivity is client affluence, not technology.
- Advisors with multimillion-dollar clients generate roughly 4x the revenue of those with half-million clients.
Higher Fees Yield Massive Hourly Leverage
- Higher‑net‑worth clients pay more per hour so advisors earn more per identical work hours.
- Average advisors earn about $250/hour while advisors with very affluent clients earn about $1,000/hour.
Scale By Averaging Up Clients
- Average up client mix and intentionally shed lower‑value clients to scale revenue per advisor.
- Reduce client count while increasing average fees so revenue rises without expanding advisor capacity.
