Financial Advising Trends for the New Year

January 20th, 2023 | by Nicole Toppin

Let’s be clear about one thing: The last few years have not exactly been the easiest. Between the highest inflation rates we’ve seen since the 70s, market volatility & loss, and fears of a looming recession, financial advisors are being subtly forced into rethinking their strategy for 2023. Here are a few different trends Myriad sees on the horizon.

  1. Banking and Wealth Management Consolidation:  Similar to how you can shop for clothes, groceries, entertainment, medicine, and homewares under one roof at places like Target, many investors are seeking to have both their banking & wealth management in one place. This is especially true for young and/or affluent investors, who might be seeking solutions in areas like private placements & alternative investments, credit & lending, valuation and investment banking, as well as family office services.

  2. Engagement:  As mentioned previously, there has been a significant increase in market volatility. Therefore, there will continue to be challenges regarding how clients generate retirement income, the housing market, and staying connected to local communities. That being said, it will be crucial for financial advisors to offer & host in-person events, as well as utilize their websites and social media platforms to convey essential information.

  3. Defensive Planning:  Now, more than ever, we know the importance of having a backup plan. According to U.S. News, most predictions suggest many of the challenges surrounding the economy and stock market are expected to subside in 2023. However, there is still a chance the U.S. economy could go into a recession. In 2023, it will be crucial for financial advisors to have plans in place to help clients in the event of a recession.

  4. External Investment Solutions:  Financial advisors are dipping their toes in external solutions. You might ask what does that mean exactly? More financial advisors are outsourcing different tasks in order to spend time with clients to give them more personalized services. Tread carefully, as regulators are still finalizing their stance on external solutions. For example, the Securities and Exchange Commission just proposed new requirements for RIA’s who engage with third-party services.

  5. Financial Wellness:  The aftermath of the pandemic has many people hurting financially. With inflation being at a 40-year high and the housing market out of reach for many, people are looking for financial relief. Consequently, financial advisors will need to not only maintain their portfolio numbers but focus on helping clients improve their relationship with money.

  6. Tax and Estate Planning Technology:  Although holistic financial planning isn’t a new concept in 2023, it will continue to gain attraction in the new year. Tax and estate planning are becoming more and more crucial as we continue to uncover the importance of long-term planning. In 2023, it will be important to consider offering this kind of service to all clients rather than reserving this service for wealthy clients only. Additionally, making this service more readily available can set you apart from your competitors in the financial industry.

All of that being said, these are just a few things to consider in your journey as a financial advisor. As your partner in all things HR, tech, and marketing for financial advisors, we have our finger on the pulse of the latest trends for financial advisors. If you’d like to build content for any of the subjects listed here or shore up your business for any of the potential issues coming down the pike, email us or call 515.850.1226!

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