The U.S. and global economies have undergone dramatic changes since the turmoil in the financial and real estate markets in 2008. The private wealth management industry in Mission Viejo and throughout the U.S. has experienced steady growth as the nation continues to recover.
There are many factors that will have an influence on the future of wealth accumulation and wealth management. The three key trends that promise to have a major impact are:
• Demographics
• Technology
• Marketplace
Demographics: The changing face of investors
Retirees have traditionally been the focus of wealth management, but a new trend has emerged as women dominate the control of wealth in this country and bring with them new challenges for wealth management professionals.
Women represent a challenge to the future of wealth management because they bring with them a different perspective on investing. Studies show that women look to build wealth for a secure future without necessarily being concerned about outperforming the marketplace as much as men.
Technology: Keeping up with the digital age
Women and millennials appear to be the new face of high net worth investors who have embraced digital technology. Now, more than ever before, access to digital wealth management capabilities is the standard by which wealth managers are being judged.
Keeping up with the latest digital technology and adapting to it is a trend the wealth management industry must understand and integrate into their delivery of services. Firms that do not provide clients access through digital technology will find them going elsewhere for their wealth management needs.
Competitive marketplace leads to new fee structures
At one time, high net worth investors were dependent upon wealth managers who could provide the guidance and access to investment products that were not available elsewhere. The introduction of new investment products, such as alternative investment mutual funds, that are accessible without the assistance of wealth managers is affecting the industry.
Wealth management firms must now justify their fees through the returns they can achieve for investors. New fee structures are now being offered to provide options to investors and to encourage the use of wealth management professionals.
Do you want to learn more about trends that can affect wealth management? Call Bart Zandbergen CFP® at (949) 297-8318 or visit his website.
