With Popular Investments Executive Financial Consultant Roderick Rodriguez

As we look to the year ahead, diversifying wealth management needs and client expectations continue to challenge financial consultants and advisors. Now more than ever, these professionals must drive closer client engagement, goals and experiences with dynamic products and services. The greatest of these challenges on the horizon is addressing generational client anxieties, paired with the urgency of the current economic volatility present in the markets with the increased demand for a marriage of agility and traditional consultancy.

The Great Wealth Transfer will continue to drive diversifying wealth management needs in 2021.

The financial services industry will continue to scale the Great Wealth Transfer, and this year has brought on a sense of urgency in some cases due to the pandemic. As the Baby Boomer generation moves more deeply into retirement, the focus is shifting to a new generation of investors. By 2030, this group will be in control of more than $15 trillion of inherited wealth.¹ Notably, they will also come with diversifying wealth management needs and expectations set by consumer technologies, digital communication experiences and diversifying financial goals.

While younger generations may seek a digital experience, technology won’t replace the importance of consultancy.  Relationships will continue to be key. Young investors benefit from strategic partnership with their advisors much as their parents have. The goals may be different between theses generations. However, the red thread connecting them are how guidance can be leveraged to further their understanding and accomplish their goals.

The need for more holistic financial planning continues to rapidly compound these changing attitudes. Notably, Millennials and Gen X investors are looking for help navigating other aspects of their financial experience. This may include focuses on debt, budgeting, financing the experiences they value or starting a business.

Ongoing volatility will drive high-touch consultant-client relationships.

Amid ongoing economic volatility, we expect to see shifting attitudes across all investor groups well into 2021. As new asset classes and investment strategies arise, the education process can be introduced and fostered with financial consultants.

Clients will increasingly prioritize access to both their funds and their team of financial professionals. Similarly, we are consistently seeing heightened concerns around portfolio management, risk mitigation, and contingency planning in the event of dramatic market shifts. In other words, clients are craving control and expectations have escalated as they take steps to protect their funds. This is particularly true for millennials who though risk adverse, are delving deeper into how finance can be managed to help reach their milestones.

In times like these, financial consultants are able to temper concerns, leveraging industry knowledge and useful historical perspective to provide guidance. Digital wealth tech offerings are not able to offer that high touch engagement. With a financial consultant, clients are empowered to be proactive, meaningful discussions can be conducted.

The role of a financial consultant is enduring.

We at Popular Investments believe that the role of a financial consultant will remain critical to driving success.

We serve as a resource to help identify financial blind spots, scale to reach goals and serve as a sounding board in times of both opportunity and uncertainty. Too often, we encounter clients with severe blind spots, fixated on specific investment vehicles and asset classes. However, while these financial products may promise short-term reward, they also potentially come with unnecessary risk. It is our responsibility to identify these shortcomings, offer measured solutions and help our clients to maximize their financial potential.

Now is a great time to start. The first quarter of the year is critical for financial housekeeping. During this time, clients should look to their wealth management team to revisit budgets and current assets, evaluate portfolio performance and diversification.

Our Wealth Management team is here to help. Set up an appointment today to discuss your financial goals.

Roderick Rodriguez is a Vice President and Executive Financial Consultant with Popular Investments and a Registered Representative of Infinex Investments, Inc. Leveraging more than 30 years of wealth management and industry experience, he effectively works with clients to meet their diverse and growing needs. The above article shares his expertise and industry insights.