Do You Want a CPWA Certification to Serve HNW Shoppers?


Are you a wealth advisor trying to enter or broaden your attain within the high-net-worth (HNW) market? This consumer section contains enterprise homeowners, executives, inventive professionals, and next-gen heirs with a internet value of $5 million or extra.

These potential shoppers characterize a various group with distinctive challenges and life targets far past asset accumulation. To draw and retain HNW shoppers, you’ll want superior technical experience and nuanced abilities in individuals and household dynamics administration.

How are you going to get or fine-tune these abilities? Incomes the Licensed Non-public Wealth Advisor® (CPWA®) certification from the Investments & Wealth Institute (IWI) is one approach to accomplish this aim. However is it well worth the time, effort, and cash you’ll dedicate to the method?

That will help you make your choice, let’s evaluation what getting a CPWA certification entails and the way it may gain advantage wealth advisors who want to serve HNW shoppers.

What Is a CPWA Certification?

The CPWA certification program entails a singular, multidisciplinary method to addressing the monetary wants of HNW shoppers. Candidates to this system can select between two enrollment choices:

  • A 6-month on-line program together with a 1-week, in-person class at a prime enterprise faculty

  • A 12-month online-only program

The conditions are:

Lastly, it’s essential to cross a four-hour last examination protecting 135 questions.

What Are the High Causes to Contemplate the CPWA?

The first advantages cited by many advisors holding this certification are:

  • Aggressive differentiation within the crowded HNW market

  • Extra confidence in working with ultrawealthy shoppers

  • Superior information particular to fixing advanced planning challenges

  • Potential for greater compensation and profession development

And, current knowledge tells us {that a} CPWA certification could also be an efficient approach to develop your observe. In accordance with Cerulli Associates, CPWA practices have the biggest common consumer measurement within the business:

average client AUM for CPWA advisors vs. all other industry advisors

What Will You Study?

The CPWA program’s curriculum is designed to provide the idea and sensible methods you’ll have to serve HNW shoppers—and to cross the required certification examination. The 11 core subjects are damaged down into the next 4 classes:

1. Wealth administration. Understanding the massive image is important to optimizing planning for the ultrawealthy. This section will enable you analyze and advocate tax-efficient options and learn to construct and handle portfolios that meet advanced HNW targets.

  • Tax planning. This deep dive into HNW-specific taxation will information you in speaking about methods with shoppers, simplify planning, and enable you work successfully with shoppers’ tax attorneys.

  • Portfolio administration. This section will elevate your skills to harmonize wealth-building methods, danger administration, tax consciousness, and portfolio methods with shoppers’ assets and targets.

  • Threat administration and asset safety. You’ll be taught to guage acceptable insurance coverage and asset methods to guard shoppers by life occasions together with marriage, divorce, and dying.

The [CPWA program] content material was improbable and considerably elevated my potential so as to add worth to my goal market ($1 million–$5 million investable, primarily company VP-level individuals).”

Justin Hutt, CooperDavis Monetary Group,with Commonwealth since 2017

2. Human dynamics. Working with any consumer section requires sturdy abilities in managing expectations, decision-making, and relationships, however you’ll want to lift your recreation when serving the extremely prosperous.

  • Ethics. Studying to establish and classify moral and regulatory points throughout the wealth administration spectrum will can help you work confidently with a complicated consumer base.

  • Behavioral finance. Cognitive and emotional biases can intrude with a consumer’s potential to make sound choices. By studying methods to establish biases, you’ll be higher outfitted to right or complement these tendencies.

  • Household dynamics. Tailoring methods for household organizations, trusts, and enterprise entities will rely on your understanding of key household roles, household workplace infrastructures, and the nuances of performing consumer discovery.

3. Legacy points. Should you haven’t mastered the complexities of how charitable and property planning options assist shoppers switch wealth, this section provides you with the superior abilities you want.

  • Charitable giving and endowments. You’ll be taught to evaluate the benefits and downsides of private and non-private charities, foundations, and trusts, in addition to the tax implications of giving methods in advanced consumer eventualities.

  • Property trusts and wealth switch. Though components of property planning might lie outdoors your duties, a full understanding of wealth switch, end-of-life planning, and fiduciary points is important to the work of an HNW wealth advisor.

4. Specialty consumer companies. There are particular challenges concerned with enterprise planning together with HNW shoppers’ broader planning and portfolio administration wants.

  • Government compensation. This section addresses methods to consider inventory choices, deferred and fairness compensation plans, and concentrated inventory conditions, together with guidelines, restrictions, and tax implications.

  • Carefully held companies. As a major inhabitants of the $5 million-plus consumer base, intently held enterprise homeowners want advisors who could make acceptable suggestions about enterprise entity buildings and their tax implications, buy-sell agreements, valuation strategies, the enterprise lifecycle, and succession planning.

  • Retirement. To information shoppers with huge belongings by the distribution section, you’ll want to know return sequencing, analytical forecasting, tax therapies, Roth conversions, distribution necessities, and analysis of certified plans and internet unrealized appreciation (NUA) guidelines.

So, Is the CPWA Certification a Worthwhile Funding?

If your online business aim is to draw and retain HNW shoppers, the information and insights supplied by a CPWA certification might enable you goal—and higher serve—this nook of the advisory market. However, make sure you’ve gotten a transparent plan earlier than diving in. Making lasting connections along with your desired clientele at all times relies on your agency’s service choices and the consumer expertise you ship.

MKTG-302358 AP-Campaign Guide


Superior Monetary Planning Methods
for Excessive-Internet-Value Shoppers

Discover inventive, complete monetary planning options—from asset safety to
charitable giving—to your high-net-worth shoppers’ distinctive wants.

Commonwealth and IWI are separate and unaffiliated entities. Please seek the advice of your member agency’s insurance policies and acquire prior approval for any designation/certification applications.


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