For decades, the traditional wealth management model has followed a familiar and predictable arc. A business is sold. A company goes public. A substantial restricted stock position vests. An inheritance is received. And only then does the advisor step in.
But for the conscientious advisor, a critical question looms: by that point, is it already too late?
Even if the newly prosperous prospect answers the call, and even if the advisor is retained, many of the most consequential financial decisions have often already been made. Decisions that can shape an individual’s long-term financial trajectory frequently occur years or even decades before wealth becomes real.
Consider just a few examples of choices that may already be firmly in place by the time the check hits the account:
- Roth 401(k) versus pre tax contributions
- What to do with vested equity
- Approach to concentrated stock positions
- How much debt to assume
- Whether and how to defer compensation
- How to balance the financial needs of children and family members
By the time an advisor engages, these decisions are no longer theoretical. They’re lived realities.
Given that so many important decisions have been made in a vacuum in the years leading up to engagement, is it any wonder that an estimated 90% of high net worth family wealth is gone by the third generation? If advisors want to influence outcomes more meaningfully, it may be time to rethink when and how the advisory relationship truly begins.
Planting the Tree, Not Buying the Shade
Rather than waiting for wealth to arrive, strategically minded advisors are making a different kind of investment: an investment in time.
Advisory firms like ours are building relationships long before traditional wealth management economics would justify doing so and often before any meaningful wealth has been accumulated. In practice, that means working with professionals whose primary assets exist “on paper” as equity grants or in other non-liquid forms. It means advising entrepreneurs whose businesses are in early growth stages rather than on the brink of exit. And it means helping employees navigate retirement plans, tax considerations, and fundamental financial planning long before there is substantial wealth to manage.
This approach requires patience. In many cases, it involves years of guidance, education, and planning before a conventional wealth management relationship ever takes shape. Yet the payoff is meaningful: advisors who engage earlier can participate in the decisions that actually create long-term financial outcomes, not just those that react to them.
Perhaps most important, this model allows trust to develop organically. When assets eventually do arrive, there is no sudden handoff, just a seamless transition from trusted advisor to steward of wealth.
The Case for Playing the Long Game
Today, a growing share of wealth is being created through equity participation, not traditional salary or bonuses. Startup founders, early employees, executives receiving restricted stock units, and participants in employee stock purchase plans are building significant financial futures long before that wealth ever becomes visible on a balance sheet.
At the same time, these individuals are often navigating complex financial decisions with surprisingly little guidance. Equity compensation can create concentrated exposure to a single company. Tax implications surrounding stock options, RSUs, and vesting schedules can be significant. Liquidity events frequently bring sudden wealth and equally sudden tax obligations.
For many professionals at this stage, the challenge is not investment management. It is strategic planning.
When advisors engage only after liquidity occurs, they may do an admirable job managing wealth, but they may have missed the opportunity to help shape it.
How Employers Can Facilitate Earlier Engagement
In many cases, the opportunity to build these early advisory relationships begins inside organizations themselves.
Forward looking companies increasingly recognize that financial complexity is no longer limited to the executive suite. Employees lower in the organization may receive equity compensation they do not fully understand. Early career professionals may be making retirement, tax, and planning decisions for the first time. Entrepreneurs may be focused on growing their businesses while wrestling with personal financial choices that carry lasting implications for themselves and their families.
For companies that engage advisory firms to support employee financial education and planning, the benefits are mutual. Employees are better equipped to manage their finances over time and are more likely to understand, value, and maximize the financial benefits their employer provides.
Meanwhile, in the spirit of “people don’t care how much you know until they know how much you care,” advisory firms that are willing to invest early through education, retirement guidance, and tax support can begin building relationships that generate enduring value.
Of course, not every advisory firm is positioned to meet employers at this level. Advisory firms pursuing this path must be large and diverse enough to match the scope and expectations of institutional relationships. Employers are not looking for narrowly defined solutions. They need access to multidisciplinary expertise spanning retirement plans, tax planning, equity compensation, financial education, and comprehensive wealth strategy.
Firms that can bring depth, scale, and a coordinated team approach are far better equipped to support broad employee populations while maintaining the governance, consistency, and professionalism employers require.
How this support is delivered varies. Some organizations focus on a targeted population, VPs and above, for example. Others extend offerings deeper into the organization. Still others provide access across the entire workforce, from frontline employees to the C suite, specifically to avoid creating a divide between financial “haves” and “have nots.”
For employers that pursue this approach, establishing clear “rules of engagement” is essential. These boundaries ensure transparency and alignment and may address questions such as:
- Which employee populations are eligible
- Whether advisor outreach is proactive or employee initiated
- How and when advisors may communicate with employees
- Which services may be offered, and which are off limits
For advisors, the logic is straightforward: today’s entry-level employee may be tomorrow’s executive, major shareholder, or founder of her own successful company.
The Future of Wealth Management
As the sources of wealth continue to evolve, so too must the wealth management industry itself. Entrepreneurship, equity participation, and innovation-driven business models are reshaping how and when wealth is created.
Advisory firms that adapt to this reality, partner thoughtfully with employers, and invest in earlier engagement will build a steady pipeline of well-prepared clients, individuals who have already established trust and are ready to move seamlessly from wealth creation to wealth management.
OpenArc Corporate Advisory, LLC is registered as an investment adviser with the Securities and Exchange Commission (SEC). OpenArc Corporate Advisory, LLC only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Investing has risk of loss, there are no guarantees for performance, and you may lose 100% of your investment.
