Can well-being better your business?

The latest Kitces Research Report "What Actually Contributes to Advisor Well-Being" found that a lack of focus on advisors' mental and physical health can have negative consequences on their business. Burnout, stress, and fatigue can lead to decreased productivity and poor decision-making—things which may impact your client interactions. By taking care of yourself, you can be better positioned to handle day-to-day work challenges.

What contributes to overall well-being?

The report finds several connections between advisors' mental health and overall business health. The report, based on nearly 3,000 responses, sought to explore what defines a feeling of "thriving" for advisors, what impacts great well-being had on advisors' professional lives, and how advisors could boost their own well-being.  

Ultimately, they found that the happiest advisors are often the most successful, and that greater well-being also correlates with a willingness to remain with their current firms.1

So, what constitutes advisors' well-being? According to the report, it comes down to these key factors:

  1. Deep experience 
    As advisors gain more experience, they tend to become more confident in their client-facing abilities and more comfortable with the challenges of running a firm. This can lead to a sense of mastery and fulfillment, which are key components of well-being. 
  2. Healthy work hours
    "Thriving" advisors tend to work 5 hours less per week than those who were identified as "struggling." With efficient processes and delegation, stress and anxiety are more likely to be kept at bay. 
  3. Fair compensation structures 
    With stronger well-being and higher confidence in their own skills, "thriving" advisors tend to aim higher when it comes to compensation. According to the report, these advisors are more likely to work with highly affluent clients and price their services appropriately.  
  4. A strong support system 
    By surrounding themselves with caring, supportive people in their personal and professional lives, advisors are more likely to experience emotional and financial well-being. 

How advisors can boost their well-being

It's clear that confidence, healthy boundaries, and meaningful support are key when it comes to bringing your best self to work every day. 

What can you do to invest in yourself and see the biggest payoff? Here are five tips to help you make your well-being a priority:

  1. Invest in professional development. Continuing education and training can help you stay on top of industry trends and regulations. Improve your skills as an advisor by attending industry conferences, webinars, and workshops, and consider earning additional certifications or licenses.
  2. Watch your capacity. Don't be afraid to say "no" to clients. Taking on too many clients or clients who aren't a good fit for your model can put a strain on capacity that can affect your well-being and the firm overall.
  3. Delegate tasks. It can be tempting to try to do everything yourself. However, delegating tasks to employees or outsourcing certain functions can free up your time and energy to focus on your priorities. Plus, sharing important work across the team can be a morale-booster.
  4. Reconsider your pricing. When was the last time you evaluated your rates? Pricing that is out of sync with the services and value you provide to clients can impact well-being. 
  5. Expand your network. Your day-to-day can be consumed by your to-do list. It's important to have—and make time for—a network of colleagues and mentors outside your office who understand your challenges and can offer advice and support.

Well-being is unique to every individual. Whether you're newer to your firm or experienced, it's clear that investing in yourself can offer both personal and business benefits. 

What you can do next

  • Looking for an easy way to get your continuing education (CE) credits? Our courses in RIA EdCenter™ enable you to conveniently complete your credit requirements, grow your finance skills and stay in-in-the-know on industry trends. Learn more.  
  • Build a foundation for success and propel your firm forward with strategic business support and education. Check out our Business Consulting and Education programs
  • Consider a custodian that invests in your success. If you're thinking about becoming an independent advisor, contact us to learn more about the benefits of a Schwab custodial relationship.

  1. Dan Inveen and Michael Kitces, "The Kitces Report: What Actually Contributes To Advisor Wellbeing?" August 2021,