While holistic planning gains popularity, local financial experts say it’s always been this way

Customization in wealth management is trending, with 95 percent of financial professionals expecting growth in holistic financial planning by 2027, according to research by eMoney. For many firms in Rochester, though, taking a personalized approach to wealth management is not seen as a trend, but more as a foundation.

“We have always emphasized that we develop customized plans for people because we spend the time to get to know our clients,” said Elizabeth Thorley, CFP, founder and CEO of Pittsford-based Thorley Wealth Management, Inc. “We think it’s important to look at things from a holistic standpoint, not in isolation. It’s not just looking at a client’s taxes or their investments but looking at the big picture.”

Thorley says a customized approach can take more time than a more transactional approach because it’s built upon a relationship between a client and advisor/advisory team and getting to know the client’s life circumstances, values, goals, risk tolerance and more.

“The relationship is so important, you cannot start planning without understanding what it is that the client wants to accomplish,” Thorley said. “There are lots of solutions, investment options and different strategies out there, but we have to understand what is important to the client.”

Thorley emphasizes that her role is not to make decisions for clients but to provide them with their options based on what they say is important to them. She also strives to provide concise, simplified reasoning for the customized options she provides, rather than providing an overwhelming list of more general options.

“We do ask clients to fill out some worksheets and although they have to invest a little time, energy and effort into them, there’s a huge payoff,” Thorley said. “They have a better appreciation of some of the different options and a better understanding of why we’re offering them.”

One way customization can be accomplished is via environmental, social, and governance (ESG) investing, in which case Thorley and her team can build and align a client’s portfolio with companies or funds whose practices and values are in sync with their own when it comes to social responsibility.

“Though it is not something that is mainstream at this point, I see it on a regular basis, and it is an area we’ve been active in for a very long time,” said Thorley, about ESG investing. “It is not used, and it doesn’t need to be used by everyone, but for the client from whom it’s important, it’s an option that we can offer to them.”

William G. Shaheen, CPA, is the president and CEO of Whitney & Company, a Rochester-based Independent Registered Investment Advisor founded in 1975 that also takes a holistic approach to investment management services.

“We tailor each portfolio based on each client’s risk tolerance, long-term goals and objectives and we structure a portfolio that we think is going to achieve that for them,” said Shaheen, who says that portfolio customization begins with broad financial planning with an advisor who seeks to learn a range of things from a client’s vision of their future to their comfort level with market volatility.

Shaheen notes that his team looks at each client as an individual with unique long-term goals, even at the later stages in life, so they can help them customize and invest accordingly.

“Many times, in our business, people are driven by age,” Shaheen said. “And they say ‘Well, since I’m eighty years old I should probably be conservative with investments, right?’ And we tell them, ‘Not necessarily. What are your objectives? Do you want to leave money for your kids or your grandkids? Do you want to leave money to charity?”

When looking for a firm that takes a holistic or customized approach, Shaheen recommends one with a clear and transparent fee structure; a strong team of advisors (rather than a solo practice) that has a mix of professionals on staff, such as a CPA and CFP; and the firm’s succession plan.

“I’m very comfortable that if something were to happen to me, I’ve got four partners now who are owners of the firm too, so our client base will be well taken care of if I wasn’t here,” Shaheen said. “We truly work on every client account as a team internally and I think that’s important. You’re not just hiring one person in the firm; you’re hiring the firm.”

John T. DiPasquale is the principal and CEO of Rochester-based Cobblestone Capital Advisors, an Independent Registered Investment Advisor with a broad spectrum of clients from those in the wealth accumulation stage to those with generational wealth. No matter the stage in life, when new clients come to the firm, DiPasquale says the most important first step is getting to know them.

“Conversations for each client are tailored to their personal circumstances,” DiPasquale said. “We don’t begin investing a dollar until we have a really good handle on their circumstances and where they want to be. Obviously, everyone wants to grow their assets, but there must be some broader perspective that we can properly approach investing with.”

Once his team gets to know clients through relationship building and numerous, detailed conversations, they are better able to customize their portfolios.

“We’re very deliberate and you need to be deliberate,” DiPasquale said. “There needs to be a lot of conversations. A big part of our job is educating clients on what volatility means and what the expectation should be for asset class volatility.”

From risk to diversification, educating clients on investing is a big part of customizing a client’s portfolio.

“Portfolios can have similarities across the asset classes, but asset class exposure is a way to customize,” said DiPasquale, citing for example, that someone more risk-averse might have a higher percentage of fixed income assets than someone less risk-averse.

And DiPasquale points out that constructing and customizing a portfolio should not be a one-time event.

“It’s a continual process because lives change and priorities shift,” he said. “Clients should continually reassess where their priorities lie, and we can adjust their portfolio to meet their ever-evolving needs.”

Caurie Putnam is a Rochester-area freelance writer.

i