North America Drives Global Wealth Growth in 2023

According to BCG’s Global Wealth Report 2024, North America emerged as a powerhouse in financial wealth accumulation, representing over 50 percent of all new financial wealth generated in 2023. This growth was largely attributed to a resurgence in the stock market, particularly the impressive gains seen in the S&P 500 index, primarily driven by the so-called "Magnificent Seven" tech giants.

Sustained Growth and Cross-Border Inflows

The report emphasized that the United States has solidified its status as the fastest-growing booking center for Western wealth. The country continues to attract global capital, with cross-border wealth inflows increasing by 5.6 percent in 2023, and projected to rise by approximately 6.9 percent annually through 2028. ### Challenges Facing Financial Advisors

As a result of this wealth creation, top financial professionals in the U.S. have an opportunity to showcase their skills and expertise. They face a myriad of challenges, including market volatility, evolving client expectations, fee compression due to the rise of robo-advisors and low-cost ETFs, and an ever-changing regulatory landscape.

Lynn Chen-Zhang, CEO of Zhang Financial, pointed out that in order to thrive, leading firms must emphasize value-added services beyond mere investment management. This includes comprehensive financial planning and proactive compliance with current regulations.

Industry consolidation has also posed a significant hurdle. Jesse Hurst, founder of Impel Wealth Management, notes the impact of private equity buying up smaller wealth management firms. He highlighted that successful professionals are not only keeping pace but are actively embracing technological advancements such as generative AI to enhance productivity and efficiency in serving clients.

Spotlight on the Best in the Business

Among those recognized for their exceptional performance is Craig Gould, CEO of Binah Capital Group. Following a successful merger between Wentworth Management Services and Kingswood Acquisition Corp., Gould’s firm is now positioned to provide cutting-edge services to its more than 550 registered investment advisors (RIAs) and manage assets totaling between $25 to $30 billion.

Reflecting on the merger, Gould stated, “It was a year and a half in the making… and to get that behind us was certainly a good feeling.” He underscored the importance of creating long-term shareholder value through strategic growth and collaboration with RIAs.

Another standout, Thomas Ruggie, founder and CEO of Destiny Wealth Partners, has shown foresight in adapting to market conditions, specifically by transitioning to a fee-based advisory model ahead of many competitors. “I always felt if you didn’t have commissions driving recommendations, it gave you an unbiased approach,” he explained.

Similarly, Liz Miller, founder and president of Summit Place Financial Advisors, has embraced a people-first approach in her practice, ensuring each advisor maintains close relationships with their clients and adopts a holistic view of their wealth management.

Embracing Technology for Future Growth

Mike LaMena, CEO of Wealthspire Advisors, shared insights into the organization’s broad growth, which now approaches $28 billion in assets under management across 24 offices nationwide. He emphasized a commitment to nurturing client relationships while utilizing technology to streamline processes, noting the importance of balancing tech reliance with human connections.

“As we keep evolving, I think the future is more tech-enabled but also more human,” LaMena remarked, highlighting a critical trend in the financial advisory space.

Jeffrey DeHaan, managing partner at Clearwater Capital Partners, echoed similar sentiments regarding technology’s role in consultation services. His firm has recorded organic growth exceeding 13 percent over the past year by enhancing client security measures and improving their technological infrastructure.

The Hot List of Top Financial Professionals

InvestmentNews has released its 2024 Hot List, recognizing leading financial professionals across the industry, including:

Adam Gana, Managing Partner, Gana Weinstein LLP
Alan Moore, CEO, XY Planning Network and AdvicePay
Barry Sommers, CEO of Wealth & Investment Management, Wells Fargo
Edward “Ted” Pick, CEO, Morgan Stanley

These individuals exemplify the leading edge in the finance sector, showcasing innovative strategies, a commitment to ethical practices, and a customer-centric focus that defines success in the evolving world of wealth management.

As North America forges ahead as a leader in global wealth creation, the continual adaptation and innovation among financial professionals highlight a bright future for the industry as a whole.