The onboarding process is one of the most overlooked opportunities for financial advisors to demonstrate value—creating the foundation for client trust by positioning the portfolio to maximize long-term net financial benefits. The key to effective onboarding? Treat the process as tax management, not just an administrative step.
Transition analysis viewed as non-negotiable
Recent research from Cerulli Associates1 highlights that for many investors, transition analysis is a non-negotiable capability. Advisors need to compare current holdings against recommended portfolios and assess embedded gains, concentrated positions and potential tax liabilities. Without this step, advisors risk realizing unanticipated capital gains and eroding client trust before the relationship even begins.
Asset location by household, not account
A particularly impactful onboarding strategy is aligning investments across household accounts. For example, equities in taxable accounts may benefit from the preferential capital gains tax rates, while certain taxable fixed income securities may be best-suited for a tax-deferred account. Yet Cerulli finds that many platforms still default to account-level oversight, missing potential opportunities for optimization.
Focus on after-tax outperformance by using active tax-management techniques
Client conversations about tax budgeting
Cerulli emphasizes that investors want to control their tax experience. Advisors should work with clients to establish annual tax budgets that spread gains over time, allowing managers to take advantage of loss harvesting when needed—or when volatile markets present opportunities. These conversations help align portfolio transitions with client expectations.
Advisors who lead win
Advisors who can show immediate, measurable tax savings during onboarding help position themselves as proactive partners. They demonstrate that decisions are made with after-tax outcomes in mind.
The bottom line
Onboarding can be a critical moment to demonstrate value. Advisors who treat it as a tax management opportunity may create lasting trust and better long-term outcomes for their clients.
To explore all the data and insights, download the full Cerulli report here.
1 Customized at Scale: A Framework for Next-Generation Advisory Platforms, October 2025. Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. This study was sponsored by Parametric. Parametric is not affiliated with Cerulli Associates or any of its affiliates.
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04.20.2028 | RO 5399390
