Three Trends Affecting Wealth Management Services in Scottsdale

In the near future, three trends will affect wealth management services in Scottsdale:

First, investors will have greater access to robo advisors. Using technology, robo advising provides automated, algorithm-based portfolio management advice without the use of human financial planners, according to Investopedia. It provides a lower-cost option for investors. Given their tech-savvy nature, millennials are a prime target for this service.

However, affluent investors with complex financial situations will still use wealth management services in Scottsdale. They need the personal attention and high-touch service of human professionals.

Second, the federal government will continue to get involved in designating investment advisors as fiduciaries. President Obama has been very vocal on wanting greater consumer protections against advisors who do not operate in a fiduciary capacity. Requiring more advisors to adopt a fiduciary standard will mean they have to act transparently and in the client’s best interest. How the government regulates fiduciary responsibilities and how advisors must comply to the regulations will unfold in the near future.

Third, demographic trends will lead to a substantial wealth transfer across generations. Born before World War II, the “Silent Generation” currently holds 30% of U.S. assets. Within the next 10+ years, this percentage will drop significantly as this generation transfers its assets to other generations, including Baby Boomers and Generation X. At the same time, the Baby Boomers will begin to transfer wealth to Generation X. This tremendous transfer of wealth in the coming years will prompt wealth management services in Scottsdale to create trusts and restructure portfolios.

WealthTrust Arizona is one of the only wealth management firms in Arizona that integrates financial planning and estate planning. The company uses a committee-based approach to wealth management to deliver its solutions to families, executives and other affluent individuals. WealthTrust’s licensed professionals provide comprehensive wealth management solutions in financial planning, portfolio management, estate planning, retirement planning, and risk management.

To learn more about wealth management services in Scottsdale, call for a free consultation at (480) 483-7300 or contact us online today for more information.