Ep. 88 Unbundling Financial Services and Maximizing Value for High-Net-Worth Individuals
The financial services industry has undergone a major transformation, shifting from commission-based models to fee-based Registered Investment Advisors (RIAs). While this change aimed to align client and advisor interests, it also led to the bundling of investment management with financial planning—raising the question:
Are clients actually getting maximum value from bundled services?
In this episode of Live Life Liberated, Derek Myron, CFP®, Managing Director, and Sean Clark, Director of Financial Planning, discuss:
- The rise of the fee-based RIA model
- Above-the-line vs. below-the-line planning—what truly moves the needle
- How high-net-worth individuals can optimize income tax, wealth transfer, and balance sheet management
- Steps to take if you feel underserved by your current financial team
The Evolution of Financial Services: From Commissions to RIAs
How Did We Get Here? A Brief History
Financial services have evolved dramatically, from commission-based brokers to fiduciary-focused RIAs:
- Pre-1980s: Trust and estate planning was primarily for Rockefeller-level wealth
- 1980s-1990s: Stockbrokers dominated the market, earning commissions on trades
- 1990s-2000s: Discount brokers and online trading changed the game, leading to fee-based models
- 2000s-Present: RIAs grew significantly, emphasizing fee transparency and fiduciary responsibility
“The RIA industry didn’t really take hold until the 2000s, when access to information and online trading made commissions obsolete.” – Derek Myron
What Does It Mean to Be a Fiduciary?
Unlike brokers who follow a suitability standard (recommending acceptable products), RIAs must adhere to a fiduciary standard—meaning they are legally obligated to act in the best interest of the client.
“Being a fiduciary means finding the best-in-class solutions—not just the products our firm endorses.” – Sean Clark
However, as RIAs expanded, many firms began bundling services, raising concerns about whether clients were receiving tailored, high-value financial planning or simply a one-size-fits-all approach.
Above-the-Line vs. Below-the-Line Planning: Where’s the Value?
At Centura Wealth Advisory, planning is categorized into two levels:
Below-the-Line Planning: Necessary but Incremental
These services support investment management but don’t necessarily drive exponential financial outcomes:
❏ Cash flow planning
❏ Asset allocation and location
❏ Basic stress testing
“Below-the-line planning is helpful, but it’s not what transforms a client’s financial future.” – Derek Myron
Above-the-Line Planning: Where the Real Impact Happens
For high-net-worth individuals, true financial impact comes from above-the-line services:
❏ Income tax planning – Forward-looking strategies to reduce lifetime tax burden
❏ Wealth transfer planning – Structuring assets to maximize intergenerational wealth
❏ Balance sheet optimization – Managing debt, asset structuring, and liquidity events
“Income tax planning isn’t just about this year—it’s about the next 5, 10, or even 20 years.” – Sean Clark
While most financial firms offer planning, it’s often bundled with investment management, making it difficult for clients to measure true value.
The Problem with Bundled Financial Services
Why Do Firms Bundle?
Many firms bundle planning with investment management to:
- Increase client retention by adding perceived value
- Differentiate themselves in a competitive investment management space
- Create a “sticky” client relationship where it’s harder to separate services
But for high-income earners and ultra-high-net-worth families, bundled services often result in surface-level planning that lacks depth and customization.
“Bundled planning often does just enough to justify an AUM fee, but not enough to deliver transformative results.” – Derek Myron
The Case for Unbundling: Paying for What You Need
Why Separating Services Matters
Unbundling financial services provides greater transparency and accountability. Clients can:
❏ Clearly define what they are paying for in investment management vs. financial planning
❏ Measure value by comparing services and outcomes
❏ Ensure planning is proactive, not reactive
“A clear, delineated value proposition ensures that clients know exactly what they’re paying for and what results they should expect.” – Sean Clark
Who Benefits Most from Unbundling?
For individuals with $20M+ in net worth and $2M+ in annual income, specialized tax and wealth transfer planning can yield significant financial advantages.
“When you reach a certain level of wealth, incremental planning isn’t enough—you need strategic, proactive financial guidance.” – Derek Myron
How to Assess Your Financial Team: Are You Getting Maximum Value?
If you’re unsure whether you’re getting the best financial advice, consider these steps:
Step 1: Self-Assessment
❏ Am I paying for bundled services without understanding their value?
❏ Do I have income tax pain and need forward-looking strategies?
❏ Is my estate structured for efficient wealth transfer?
Step 2: Ask Your Professionals the Right Questions
✔ CPA: Do you provide forward-looking tax consulting, or just compliance?
✔ Estate Attorney: Are you considering my entire financial picture, or just drafting documents?
✔ Financial Advisor: What is your process for proactive income tax and balance sheet optimization?
“If your financial team can’t articulate their process, it’s a red flag.” – Sean Clark
Step 3: Consider a Second Opinion
If you suspect you’re underserved, it’s worth consulting with a fiduciary advisor who offers specialized planning and a clear fee structure.
Final Thoughts: Is It Time to Unbundle?
For many high-net-worth individuals and business owners, unbundling financial services leads to:
❏ Greater clarity on where fees are going
❏ Higher-quality financial planning tailored to complex needs
❏ More control over wealth, taxes, and long-term strategy
If you’re ready to explore an unbundled, results-driven approach to financial planning, connect with Derek Myron at [email protected] or Sean Clark at [email protected].
Disclaimer
The information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Centura Wealth Advisory. The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.
Centura Wealth Advisory (Centura) is an SEC-registered investment advisor with its principal place of business in San Diego, California. Centura and its representatives are in compliance with the current registration and notice filing requirements imposed on SEC-registered investment advisors in which Centura maintains clients. Centura may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. Past performance is no guarantee of future results. Tax relief varies based on client circumstances, and all clients do not achieve the same results.
