wiseradvisor

Top 5 Financial Planning Trends in 2019

Top 5 Financial Planning Trends in 2019

Good Bye 2018 & Hello 2019!

The start of a new year is a good time to review your personal finances, ditch those bad money habits, and make new financial resolutions to flourish, build wealth, and improve your tactic to make the year impactful.


Top 5 financial planning trends to watch this year.

  1. Adoption of new technology
  2. Increased longevity needs more financial planning
  3. Growth in workforce diversity
  4. Increased Focus on the Customer
  5. Leveraging Qualified Opportunity Zone Investments
  1. Adoption of new technology

    In today’s dynamic era, digital transformation is underway and is affecting the financial services industry, consumers, small businesses, corporations, governments, institutions, and even individuals at all levels.

    The fast-paced economy, technology advancements, ever-changing customer expectations, modifications in regulations in the financial sector along with emerging FinTech organizations is shifting the game for financial planning and wealth management by making it more accessible, faster, secure, easy to perform and consume.

    FinTech companies are altering the way we handle money by bringing interactive and data-driven tools/apps to provide a seamless experience, increased security and greater convenience to their customers. These tools allow investors to keep track of their investments in real-time and execute transactions based on the current market conditions. Organizations leverage advanced technologies such as AI/ML and Big Data to provide intelligent and contextual recommendations based on various underlying factors such as customer’s buying patterns, prior engagement, risk appetite, age, demographics, etc helping them to make more accurate decisions.

    Electronic wallets have taken the payments world by storm. The digital wallets are becoming the new mode of tap-and-go consumerism which has made transactions simpler, faster, secure, and transparent.

  2. Increased longevity needs more financial planning:

    A whitepaper by World Economic Forum (WEF) “We’ll Live to 100 - How Can We Afford It?” echoes some interesting data on increasing life expectancy that “Population over 65 will increase from 600 million in 2017 to 2.1 billion in 2050.

    What does this mean?

    It simply means that the global life expectancy has been increasing at a steady rate and implies that we need to do some meticulous financial planning to bridge a potential cash flow gap at the time of retirement.

    With the rise in longevity it becomes imperative to re-evaluate the conventional investment plans and make a positive headway towards saving for the retirement nest egg to live a balanced life. It also means that you must be able to keep at least 10%- 15% of an average annual salary to lead a reasonable quality of life post-retirement.

    When life transitions from one phase to another, one’s life goals and priorities also change with time. There are some challenges which need to be met at old age and has financial implications like funding long-term care needs, bill payments, and caregiver fees, coordinating required minimum distributions (RMDs) from multiple IRA accounts. Therefore, it is essential to save money from an early stage so that you can handle hassles without too much financial disruption.

    Look for a financial advisor who can help you to put together a long-term plan for growing your wealth and also help you reach your retirement income goals.

  3. Growth in workforce diversity

    The rise of longevity has a drastic impact on the work environment as people are working for a more extended period than they anticipated. In such a situation couples come under tremendous stress and pressure while they plan their retirement and make decisions accordingly. They should think and evaluate options such as if it is wise to take retirement together or if it is worth pushing their retirement for a few more years and consequently make plans accordingly.

    Diversity at the workplace has increased manifolds with more women and millennials joining the bandwagon. Today, women are spearheading businesses and have started to take control of their lives as well as their finances. A lot of women investors are seeking help from financial advisors to manage their finances and build wealth. While the financial services industry has been traditional they are gradually modifying processes to become more women-friendly and capture large group of women investors.

    The group of millennials or the next generation investors on the other hand are highly wary while investing their money which leads the market to change its mindset from being product centric to becoming more customer-centric. The advisors must ensure that the customers are well informed about their portfolios and provide services that suit their unique circumstances.

  4. Increased Focus on the Customer

    Financial planning and money management is becoming more and more complex these days, that is why many investors turn to a financial advisor who can partner with them and help put all the pieces together to provide a more comprehensive financial plan.

    Although modern financial advisory companies are embracing technology to serve their customers better and scale their businesses however nothing can replace the deeper and personal advisor-to-investor relationship. The advisors need to brace themselves by spending more time meeting their clients, understanding their unique challenges and goals to deliver significant value to the clients. The most successful financial advisors will be those who instead of selling products forcefully to the clients shows compassion and empathy and suggest plans that allow them to fulfil their goals.

  5. Leveraging Qualified Opportunity Zone Investments

    The Tax Cuts and Jobs Act created quite a stir when it was passed in late 2017; however, the only policy that seems to be beneficial and attractive within the act is Qualified Opportunity Zones.

    The Opportunity Zones is a new, exciting and an important program in the US that offers investors a significant capital gain to reduce their tax burden with an aim to help the economically weaker communities in need. The prime objective of the program is to incentivize investors and developers to transform distressed neighbourhoods into thriving industrial centers providing business and job opportunities.

    Perhaps the O-Zones program is still taking its shape, and the rules are yet to be rolled out, but it is expected to see more willingness from the investors in the market in this year. Having the financial plan in place will help you take those small well-placed steps and stick to your goals. It is also essential to know that financial planning involves considering both potential opportunities and the pitfalls based on individual family situations. However, keeping a close watch on these trends can help you make the right choices and create a financial plan that works for you and makes you happy.

Don't Settle for Any Financial Advisor And Risk Your Retirement

Find the Right Financial Advisor for You
Free Initial Consultation. No Match Fees. No Obligation

WiserAdvisor has over 20 years experience in successfully matching interested investors to financial advisors and is a trusted source in this field. Matched Advisors are screened for experience, fee schedules, registered with FINRA and SEC and hold clean records

YOU MAY ALSO BE INTERESTED IN

I want to take charge.
HELP ME FIND MY ADVISOR
x

Many of you have expressed your concerns. We heard you.
Our vetted advisors nationwide are prepared to connect via phone and/or various virtual online tools. The safety and health of you and your loved ones is our top priority.
Start your advisor matching process now. Get some clarity on the forces driving the markets and the balance in your nest egg.

Information on our advisors:

      1. Licensing & disclosures with FINRA & SEC
      2. Advisor Compensation (Fee Only or Fee Based)
      3. FREE initial 1 on 1 consultation

Get a custom match (1-3 advisors) - No match fee

Completely Private and Confidential