The last few years have come with a lot of changes, especially in the financial world. While we can’t predict the future, we saw some trends emerge at the end of 2022 that we expect to see again this year.
The future of wealth management is here: what does it look like?
Generational Wealth Transfer
We’re seeing an acceleration in the rate of baby boomers retiring, and as they’re doing so many of them are also transitioning their wealth to their children, grandchildren, and younger relatives to manage. Even if they’re not pulling the trigger quite yet, most are creating those concrete plans for transferring wealth in the future. For those who have already executed this, the responsibility of managing that wealth shifts to the Gen X and Millennial generations.
We expect that as more and more people age out of working, we’re going to see generational wealth transfers increase in the coming years. This wealth transfer to younger, more tech-savvy generations will also shape how wealth managers consult with their clients. We’ve already seen a shift internally with communication preferences, with younger clients wanting to check in via email, text, or online systems instead of setting up sit-down meetings.
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More Interest in Sustainable Investing
Crytpo and NFTs took off the last few years - and then almost as swiftly, have crashed back down. One of the criticisms against these types of investments is the negative environmental impact of the technologies required to power them. This, combined with overall anxiety about the state of our environment, has led more and more people in 2022 to choose sustainable investing - a trend we see continuing well into 2023.
Sustainable investing is the process of investing in companies that promote corporpate responsibility through taking active steps to combat climate change and environmental destruction. When choosing investments, our clients aren’t just asking about how much money is to be made - they’re also concerned with who they’re investing in.
Coaching, Not Just Advising
With the financial volatility of the last few years - and the increase of do-it-yourself technologies - we’re seeing more and more clients that want to be coached, not just advised. Meaning, they want to learn how to manage their wealth in similar ways that we do.
We expect that in 2023, the desire for this type of education will only increase. No matter how hands-on or hands-off our clients want to be, we’re here for every step of the process.
How Greater Midwest Financial Group Can Help
Whatever this year holds, you need a partner in your corner. Our licensed financial advisors specialize in small business planning and retirement planning, so we combine your comfort level with years of expertise to make the most of your financial future.
Greater Midwest Financial Group is a financial advisor firm serving St. Paul, Minneapolis and the wider Twin Cities area. We specialize in wealth management, retirement planning, asset management and other personal finance needs.
