What clients' longer lives mean for advisors; staying above board with digital assets; younger advisors embrace AI
Financial Planning
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PROFESSIONAL DEVELOPMENT: The idea behind helping clients create a "socialization plan" is simple: Humans with strong social bonds live longer. So the advisor who helps a client and their family members plan for a longer life, not just for hitting certain retirement goals, stands to make a lot more money.
With a massive intergenerational transfer of wealth underway, and research firm Cerulli Associates estimating that $84 trillion will be passed down over the next roughly two decades, it's in an advisor's best interest to not only demonstrate care for clients to live longer, but also earn loyalty points with heirs who stand to inherit huge sums.
REGULATION AND COMPLIANCE: As federal watchdogs continue hunting down errant crypto exchanges, they're separately reminding firms that they need to be forthcoming about their dealings with digital assets.
With roughly $1.42 trillion now invested in cryptocurrencies globally, the digital assets market can no doubt prove tempting to advisors and wealth managers anxious not to miss out on the next big thing. But before U.S. broker-dealers dip their toes into one of the most volatile and scandal-ridden corners of the financial markets, they need to let regulators know what they're up to.
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TECHNOLOGY: While some look at AI's rising power and profile and brace for the worst, the next generation of financial advisors seems willing to welcome the technology with open arms.
A report released this week by Weston, Massachusetts-based fintech firm Advisor360° found that many younger advisors believe generative AI tools like ChatGPT are poised to do more good than harm when fully unleashed upon the wealth business.
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