Forecasting the future of wealth management

Nov 19, 2013 @ 12:00 am

Runtime: 3:32

Securities America CEO Jim Nagengast looks at the areas in which clients will need the most advice, how the role of advisers will evolve amid technological advances and how to solve an ongoing adviser shortage.

Video Transcript

As wealth management evolves, I think you have to recognize this aging of the demographics, the baby boomers. The real important thing is meeting those retirement needs of the aging population and I think developing planning tools that addresses the needs of this demographic shift is of paramount importance. We at Securities America think retirement income distribution is a real area that advisers need to focus on and need to be trained and then you also need the technology tools to present the information, develop a plan, and then develop also the distribution strategy as needed. The wealth management model of the future always includes the adviser. I think they're always continuing to be the role of trusted advice. But I think that role is gonna change where so much information is available and can be easily gathered. There's gonna be the need to really interpret that information and really provide quality advice based on that information, so I think the role of the advisers is gonna change more and more from just gathering information and presenting information. That's gonna become a commodity. What's really gonna be valued is the advice, the plan, and really making people feel comfortable and secure in retirement. There always will be challenges in this industry as the models evolve and as pricing changes, but I think the biggest challenge with that evolving margin compression is the difficulty of new advisers getting into the business. And I think that's one of the challenges our industry faces and bringing up new advisers through training programs, junior adviser training, and how do you get new people out of college into this business. I think that margin compression is one of the biggest challenges. Also, you know, with margin compression, you simply need to gather more assets. And I think that's-- scale's becoming ever more important and with that scale the need for technology. I think in the future you have to be able to serve a variety of markets. You have to be able to serve the RIA only market or the hybrid market. And you have to be flexible with your technology to be able to bring in all this data to be able to supervise and provide compliance oversight over a variety of third-party solutions. And I think for the broker dealers you can't hide from this trend towards the RIA. You have to have flexible solutions. So, I think that's a big part of the future. The second part I would say of the future is being able to answer this retirement solution. The baby boomers are moving to retirement, a huge shift in assets. You have to be able to make people feel comfortable and secure in retirement. And technology is gonna play a huge role in that. Not just in gathering the information, but really gathering that information, interpreting it, and developing a quality advice solution that helps people feel comfortable and secure in retirement.

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