What You Need to Know
- More than 1.3 million client households have been served by the MoneyGuide planning platform.
- Expanding use of Salesforce delivers artificial intelligence-derived planning insights at scale.
- Advisory offerings need to resonate with younger clients who stand to earn and inherit significant wealth.
Some 2 1/2 years after Edward Jones announced plans to provide its 19,500 advisors with access to the MoneyGuide planning platform, more than 1.3 million client households have been served by the tool, according to Lena Haas, head of wealth management advice and solutions.
That is more than twice the projected uptake at this stage, Haas recently told ThinkAdvisor, and it’s strong evidence that a healthy culture of internal “coopetition” is driving tech adoption and fostering a planning-first service mindset at the firm.
Haas said she expects the vast majority of the firm’s 8 million-plus client households to eventually come to embrace the planning toolset, driven by advisor advocacy and organic market demand for more holistic financial planning services that go beyond investment management.
“It’s been really special to see how our advisors are talking about the tools internally and inspiring one another to engage in this planning-first approach,” Haas said. “They are embracing a deep discovery process with their clients. What are their wants? What are their wishes? Are they protected for the future?”
Other signs of an evolving planning culture, Haas said, are the fast pace of CFP designations being earned across the firm’s advisor force — along with big strategic investments and partnerships with external wealth management technology providers.
This includes the recently revealed collaboration with the estate planning platform provider Vanilla via Edward Jones Ventures and new integrations with U.S. Bank, along with expanding use of the Salesforce platform in a way that delivers artificial intelligence-derived planning insights at scale.
“We’re already at 5,500 branches now using Salesforce,” Haas said. “We are continuing our rapid pace of rollout throughout this year, and we’re gathering actionable insights from more than 500,000 client interactions on a weekly basis.”
Teaming and Home Office Support
Haas said another important area of evolution with Edward Jones is the expanding use of advisor teaming strategies, wherein multiple advisors work together to build a unified book of business within a branch office.
So far, Haas said, some 2,600 advisors are working in a team-based practice, and the option has proved to be important to both advisor recruiting and advisor retention. She said the firm has gained some 360 advisors on net so far this year, and it hopes to add more even amid a highly competitive landscape.
“We’re working very hard to make Edward Jones a place that makes sense for advisors to start or base their practice,” Haas said. “That includes the teaming approach, which has been available for more than two years now, as well as new home office support offerings that have been very popular.”
The support offerings, according to Haas, are delivered by an on-call team of specialists with expertise across a variety of knowledge domains, including estate planning, taxation, portfolio transition management and insurance.
“Access to these experts allows our financial advisors to help their wealth clients in a deeper way — without having to learn every single aspect do everything themselves,” Haas said. “For example, advisors can get support when it comes to things like planning a multi-year tax transition for a client with a complicated portfolio.”
The partnership with Vanilla is another way that Edward Jones is helping advisors do more for their clients more efficiently, Haas added, especially with many clients entering retirement and seeking to get their legacy planning in order.
Winning Next-Gen Clients
Asked what she sees as potential challenges for Edward Jones and the advisory industry at large, Haas said that firms need to take care to replace retiring advisors with younger and more diverse faces.
By the same token, Haas said, firms need to ensure that their advisory offerings resonate with younger generations of clients who stand to both earn and inherit significant wealth.
Haas pointed to findings from a 2023 Edward Jones survey showing that the majority of Americans ages 18 to 34 view themselves as struggling or merely surviving in life — yet this group is also optimistic about the future.
“With most worried about rising costs and an inability to save, this will have vast implications for the wealth management industry,” Haas said. “Our purpose calls us to identify how we might help this age group plan and reach their life goals — across health, family, purpose and finances.”
Survey respondents cited a short-term mindset when it comes to finances, Haas noted, focusing on everyday expenses, budgeting and saving for large purchases over other financial matters. Only 13% have paid off college debt, only 57% have health insurance and less than a third (27%) have life insurance.
To thrive, those in this life stage could benefit from financial education and professional advice, Haas said. Currently, however, only 12% go to a financial advisor to discuss their finances, while 52% speak with their parents as a trusted source of financial guidance.
“Another feature about this generation is that, yes, they do go to social media and TikTok looking for information, but they also come to such sources with a healthy skepticism,” Haas said.
Indeed, the survey findings suggest that only 1 in 5 reported using social media or influencers as trusted sources of financial guidance among the many other perspectives they seek.
Also positive, Haas said, is that 68% view financial advisors as an important sounding board for ideas, and even though they are the digital generation, 66% of people in this age bracket prefer in person interactions with their financial advisors.
“Working with a financial advisor can improve your financial knowledge and confidence and help you feel more in control,” Haas added. “Our research found that 68% don’t think they have enough income or savings for professional advice. But it’s never too early to get started. Financial advisors can remove complexity and help you focus on the most important first steps.”
“I am incredibly grateful for the travel rewards program offered by Edward Jones. It has not only allowed me to explore new places and cultures but has also given me the opportunity to create unforgettable memories with my daughter that will last a lifetime. From our adventures in exotic destinations to the simple moments of togetherness, these experiences have strengthened our bond and enriched our lives in ways I never thought possible. Thank you for making it possible for us to share these precious moments and create a treasure trove of memories that we will cherish forever.”
“We went to the Grand Caymans this past February. What made this trip unique is that we decided when each of our kids turns 10, we have 3, we’ll take them on their own special trip without their other siblings. My daughter was the first to turn 10, so this was her trip with my wife and me. It was such a great trip being able to focus on just her for 7 days.”
