How changes in financial services might impact you

by Badgley Phelps | Nov 20, 2019

The financial services industry is in a state of change, becoming more gender diverse, customized, and preparing for the largest wealth transfer ahead. As explained in this CNBC article, “Baby boomers are set to pass to their children a mind-boggling $68 trillion—the biggest generational wealth transfer ever.” That means that the youngest generation will become in control of the wealth—and the decisions about financial advisers. Following are three things to keep in mind about the changes happening in financial services.

1. Expect financial firms to become more gender diverse.
The CFP Board works to address the lack of gender diversity within the financial planning profession so that it can cater to the needs of our increasingly diverse population.

“Women are increasingly in charge of the household nest egg,” says Director of Financial Planning and Wealth Manager Julie Parisio Roy. “Our industry has already evolved by putting more women on the front lines and at the top of wealth management firms. Developing trusting relationships is imperative. I’m seeing more women educating themselves on the importance of the fiduciary standard and researching their options. Our industry needs to be prepared to answer women investors’ tough questions.”

2. Enjoy a more customized experience.
According to Deloitte’s “Five megatrends that will change financial services,” the future banking experience will become increasingly customized. “Service offerings will evolve to target and meet the needs of each segment or community, moving away form a one-size-fits-all mass market approach.”

We see this customization extending to the financial services industry as a whole, not just banking. And to us at Badgley Phelps, that only makes sense since a tailored approach is in our DNA. With greater access to data, research and analytics than ever before, we create wealth and investment management programs that are customized to address each client’s unique needs.

3. Be prepared to demand transparency.
Knowledge is power—and knowledge comes from transparency. Understanding the investment services and products your adviser recommends, and the underlying fees, will help you evaluate the value of the relationship. Confusing and hidden fees are counterproductive. More than ever, information and data regarding the costs of working with an adviser are available. The SEC has changed the requirements of RIA’s regulatory filings to make it easier for investors to evaluate firms. You can learn more here.

 If you need help with financial planning, please contact us.

 


 

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How changes in financial services might impact you

by Badgley Phelps | Nov 20, 2019

The financial services industry is in a state of change, becoming more gender diverse, customized, and preparing for the largest wealth transfer ahead. As explained in this CNBC article, “Baby boomers are set to pass to their children a mind-boggling $68 trillion—the biggest generational wealth transfer ever.” That means that the youngest generation will become in control of the wealth—and the decisions about financial advisers. Following are three things to keep in mind about the changes happening in financial services.

1. Expect financial firms to become more gender diverse.
The CFP Board works to address the lack of gender diversity within the financial planning profession so that it can cater to the needs of our increasingly diverse population.

“Women are increasingly in charge of the household nest egg,” says Director of Financial Planning and Wealth Manager Julie Parisio Roy. “Our industry has already evolved by putting more women on the front lines and at the top of wealth management firms. Developing trusting relationships is imperative. I’m seeing more women educating themselves on the importance of the fiduciary standard and researching their options. Our industry needs to be prepared to answer women investors’ tough questions.”

2. Enjoy a more customized experience.
According to Deloitte’s “Five megatrends that will change financial services,” the future banking experience will become increasingly customized. “Service offerings will evolve to target and meet the needs of each segment or community, moving away form a one-size-fits-all mass market approach.”

We see this customization extending to the financial services industry as a whole, not just banking. And to us at Badgley Phelps, that only makes sense since a tailored approach is in our DNA. With greater access to data, research and analytics than ever before, we create wealth and investment management programs that are customized to address each client’s unique needs.

3. Be prepared to demand transparency.
Knowledge is power—and knowledge comes from transparency. Understanding the investment services and products your adviser recommends, and the underlying fees, will help you evaluate the value of the relationship. Confusing and hidden fees are counterproductive. More than ever, information and data regarding the costs of working with an adviser are available. The SEC has changed the requirements of RIA’s regulatory filings to make it easier for investors to evaluate firms. You can learn more here.

 If you need help with financial planning, please contact us.

 


 

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