Embracing new age wealth management

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Technology has contributed to a steady change over the decades in how people live their lives. It should come as no surprise that the world of wealth management has taken a stroll down the digital path over more recent years. With more access to digital-based solutions, many companies are moving technology forward with their business plans.

The wealth management industry has already noticed many changes happening in the industry, but it’s nothing they can’t handle. This industry has always been on the verge of being more future-ready to keep up with demand. Many sectors have been able to change the way they do business thanks to new technology.

Digital solutions make it easier for these companies to offer their clients more solutions to their wealth management needs. The new way of doing business also allows them to have more digital interactions with their clients. No more playing phone tag or making a client wait forever on hold to get business done.

Let’s take a look at some of the ways the wealth management industry is preparing for the future.

Targeting new investors

There’s a new generation of people ready to start investing. However, each generation has a different set of expectations in mind than the previous.

They grew up in a different environment and didn’t have the same experiences growing up as the generation before. New investors are much savvier with technology, so it’s important to be prepared for this.

Unlike previous generations, new investors have the technology to research all of their options from home. They can read reviews and instantly find out any positive or negative experiences other investors may have had.

Every investor wants to be treated with respect, but this new generation isn’t shy from taking the steps to find the company that will treat their money the right way.

More efficient planning

New investors are going to be finicky about finances.

They will likely reject a product offering that doesn’t match their needs because they don’t have as much disposable income as previous generations.

Instead, they want a solution that is easy and doesn’t max out their budget.

To find the best solution for these new investors, wealth managers will need to:

  • Review the client’s risk profile
  • Have a clear understanding of the client’s goals
  • Determine all possible return requirements
  • Come up with an asset allocation strategy that meets the requirements
  • Always monitor in case any changes need to be made

Be prepared to go digital

To embrace new-age wealth management, you must be prepared to go digital.

Many new investors have demanding jobs that don’t allow them to break away for a face-to-face meeting. Sometimes the quickest and only way to contact them during business hours is through digital interactions.

Embracing the digital culture means that wealth managers can be available to their clients through several platforms. Clients can get a hold of them at any point during the day, allowing them access to more in-demand services. This also allows managers to stay in touch with their investors more often.

Even before the COVID-19 pandemic, new investors were looking at more digital methods of doing business. Now that there are more restrictions in place, many people are leaning towards only doing business with companies that offer digital services.

Many wealth managers are finding perks to these digital services since it comes with many more tools to collect and manage data. All this new technology has made doing business a lot easier for wealth managers by:

  • Quicker ways to communicate
  • Better user experience
  • Ability to create custom solutions
  • Happier clients

Planning for retirement

It’s never too early to start planning for retirement. Since medicine is advancing and more people are taking measures to live a healthy lifestyle, life spans are longer than they were decades ago.

This leads some clients to worry about outliving their assets. As the cost of living and healthcare continues to rise, it can be expected that many clients will worry about this.

A lot of wealthier clients also want to have wealth to pass on to future generations. It’s important to help them have the right plan in place so they can retire with enough assets to pass on. When working with a client who has these goals, it’s best to address the plan as early on as possible.

Make wealth optimization a priority

Some investors leave their wealth manager feeling more confused than they did when they made the appointment to speak to them. One thing that they always wonder is “is this too risky?” Wealth management is a big decision, so it’s important to show investors why they are making the right one.

Many new investors realize that the right decisions determine whether or not they will be successful with their wealth management. That’s why it’s a good idea for investors to think of their wealth like a business.

With both business management and wealth management, the main goal is growth. An investor wants to watch their wealth grow in the same fashion that a business owner wants to see their profits rise.

While CEOs are looking for new ways to lower operating costs, new investors always have their eyes open for ways to lower fees and make more money on investments.

Treating wealth management like a business

When an entrepreneur begins a business, they start with one key thing: a business vision.

A vision is a necessary starting point for successful wealth management. If a business owner wants to get ahead they need to map out a plan. Many start with a 5-year plan, then expand on what they want to happen within 20 years.

New investors should do the same. Before making any investment plans they should have an idea mapped out of what they want to happen with their assets. It’s never too early to start this stage of the investment plan.

Now it’s time to focus on the strategy. Every business owner uses specific strategies to expand their incoming revenue. Just like these CEOs, investors should use a proven set of protocols, follow a strict process, and plan accordingly. This should help them stay on course to achieve their investment goals.

Last, but not least, the team surrounding them is crucial for success. A business owner needs employees that they can trust to get the job done. In the same sense, an investor needs a wealth manager that they can trust with their investments.

Visions for new wealth management

There are three important things that new investors need to consider before moving forward with their plan for wealth management:

  • All assets owned
  • Risks over time
  • How badly they want success

Even though new age wealth management is making things easier by going digital, it can still be complex for many new investors when it comes to monitoring their investments. In the beginning, it’s a good idea to start small when looking at different investment funds.

Strategies for success

A strategy is how investors can overcome any faults in their wealth plan. This is how they can achieve their goals with success.

The best strategy that a person can use for successful wealth is “be better”. As in, better awareness can help a person make better financial choices. Those better choices are likely to produce better results.

However, finding the best wealth management plan won’t happen in one sitting. New investors must be willing to learn more, improve their strategies, and adapt to new situations to see success with their investments.

Story by Nicky Nelson