PLANADVISER - May/June 2021 - 36
investments | participants
Wealth Transfers on the Horizon
Emerging affluent investors may reshape some advisory shops
T
he generational transfer of wealth from Baby Boomers
to their children, sources agree, will challenge advisers'
existing business models and fee structures while
providing new wealth management opportunities to advisers
and service providers alike.
Investors under the age of 40 are evolving quickly in
terms of their wealth management preferences and priorities,
says Mike Foy, senior director of wealth intelligence
at J.D. Power in Allentown, New Jersey. This finding from
his company's 2021 U.S. Full-Service Investor Satisfaction
Study may seem unimportant or not directly relevant to
advisers focused on serving wealthier near-retirees and
retirees, Foy says, but in reality, the accelerating intergenerational
transfer of wealth that will occur in the coming
decade indicates otherwise.
" They look increasingly different from Boomers, " Foy
says of the upcoming generations of investors. " Not only
has the pandemic significantly accelerated their shift to
digital-based engagement, but emerging issues such as ESG
[environmental, social and governance] investing are also
a major priority for them that isn't seen as much yet among
Boomers. Wealth management providers are making a
mistake if they assume that the emerging affluent investors
will simply evolve into Boomers, over time. "
The Great Wealth Transfer
According to Foy, advisory firms with the ability to recognize
and address the needs these changes will create will
find-and define-success through what he calls the Great
Wealth Transfer. One requirement for success in this future
will be advisers' ability to actually help facilitate and direct
these wealth transfers. He implies a potential need for new
partnerships or service provider relationships in such cases
where the assets will be put into a trust or another form of
banking account, rather than a brokerage account or individual
retirement account (IRA).
Anton Honikman, CEO of MyVest, an enterprise wealth
management technology platform provider in San Francisco,
and now a subsidiary of TIAA, says both advisers
and their service provider partners must change to meet
consumers' shifting demands.
" The emerging investor expects us to understand not
36 | planadviser.com May-June 2021 Art by Wenting Li
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PLANADVISER - May/June 2021
Table of Contents for the Digital Edition of PLANADVISER - May/June 2021
Publisher’s Note
Compliance News
Data Points
Trends
Eyes On The Investment Menu
2021 PLANADVISER DCIO Survey: The State Of DCIO
The Promise Of Sustainable Investing
Wealth Transfers On The Horizon
Rollovers And Fiduciaries
Caution Needed Regarding Rollovers
Advisers Giving Back
PLANADVISER - May/June 2021 - Cover1
PLANADVISER - May/June 2021 - Cover2
PLANADVISER - May/June 2021 - 1
PLANADVISER - May/June 2021 - Publisher’s Note
PLANADVISER - May/June 2021 - 3
PLANADVISER - May/June 2021 - Compliance News
PLANADVISER - May/June 2021 - 5
PLANADVISER - May/June 2021 - 6
PLANADVISER - May/June 2021 - 7
PLANADVISER - May/June 2021 - Data Points
PLANADVISER - May/June 2021 - 9
PLANADVISER - May/June 2021 - Trends
PLANADVISER - May/June 2021 - 11
PLANADVISER - May/June 2021 - 12
PLANADVISER - May/June 2021 - 13
PLANADVISER - May/June 2021 - 14
PLANADVISER - May/June 2021 - 15
PLANADVISER - May/June 2021 - 16
PLANADVISER - May/June 2021 - 17
PLANADVISER - May/June 2021 - Eyes On The Investment Menu
PLANADVISER - May/June 2021 - 19
PLANADVISER - May/June 2021 - 20
PLANADVISER - May/June 2021 - 21
PLANADVISER - May/June 2021 - 22
PLANADVISER - May/June 2021 - 23
PLANADVISER - May/June 2021 - 24
PLANADVISER - May/June 2021 - 25
PLANADVISER - May/June 2021 - 2021 PLANADVISER DCIO Survey: The State Of DCIO
PLANADVISER - May/June 2021 - 27
PLANADVISER - May/June 2021 - 28
PLANADVISER - May/June 2021 - 29
PLANADVISER - May/June 2021 - 30
PLANADVISER - May/June 2021 - 31
PLANADVISER - May/June 2021 - 32
PLANADVISER - May/June 2021 - 33
PLANADVISER - May/June 2021 - The Promise Of Sustainable Investing
PLANADVISER - May/June 2021 - 35
PLANADVISER - May/June 2021 - Wealth Transfers On The Horizon
PLANADVISER - May/June 2021 - 37
PLANADVISER - May/June 2021 - Rollovers And Fiduciaries
PLANADVISER - May/June 2021 - Caution Needed Regarding Rollovers
PLANADVISER - May/June 2021 - Advisers Giving Back
PLANADVISER - May/June 2021 - Cover3
PLANADVISER - May/June 2021 - Cover4
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