Wealth Management: Top Trends in the Coming Year

Connor MachadoTaxes, Wealth, wealth management0 Comments

Like everything else in our world, change is about to happen both more quickly and more frequently in the wealth management world. Those who adapt will survive, perhaps even thrive, under the changes ahead.

Three things to look out for:

1. ROBO ADVISORS

A close second in the headlines about emerging trends is the emergence of robo advisors. Like it or not, robo advisors are here to stay and I believe that they can help both advisors and our clients. My only problem with the robo advisor is the name. The robo platforms currently available are not advisors, they are investment platforms. A better name would be “robo investors.”

2. STANDARD OF CARE

When you think about it, the financial planning profession is not even 50 years old. The evolution of the standard of care owed to clients has grown all the way from consultative sales through proactive and holistic financial management offered on a fiduciary basis.

3. THE DEATH OF LIP SERVICE

If you follow what has happened in the U.K., Australia and New Zealand, the raw numbers of people calling themselves a financial advisor or a wealth manager have dropped materially. That is because these countries have done a better job at regulating the advice profession than we’ve done here in the U.S., making it almost impossible for a lip-service advisor to earn a living.

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