The Global Economy has been stuck in a rut for the past few years, according to the Conference Board Global Economic Study 2016.
Some reasons for the financial stasis include:
- Lackluster business
- Lack of consumer confidence
- weakened productivity
- Outdated business policies
Despite the limitations, the global economy is improving ever-so- slightly, to a 2.8% growth rate, up from 2.5% in 2015, when you factor in China’s overstated growth rate.
This is a reflection of a generally more optimistic outlook that is seeing more business for financial planners and wealth managers.
Global Financial Trends that Will Impact Financial Planners
1. Younger Clients With More To Spend: Capgemini’s 2015 U.S. Wealth Report reported the number of U.S. Citizens with over $1 million USD rising to a record high, with over 4.4 million investors investing $15.2 Trillion in the global economy. Many of these investors are younger than your average millionaires, meaning they’ve cut their teeth in today’s digital business place. Younger investors show less allegiance to a financial planner or firm, thanks to a nomadic digital lifestyle. This just means financial planners are going to have to work harder to understand what these young investors need, and figure out how to give it to them.
2. People Still Need Financial Planning: Elizabeth Nesvold, a managing partner of Silver Lane Advisors, spoke about the continued need for wealth management and financial planning. “Buyers are still attracted to wealth management. They see the average RIA growing at 15% plus in a minimally capital intensive business, and baby boomer demographics driving the need for financial and estate planning advice.” The message is clear – whether you’re a retiree or a millennial, you need solid financial planning to make the most of these uncertain times we’re living in.
Want to find out how some of the Sunshine Coast’s most trusted financial planners can help you realize your financial dreams? Contact us today and find out!