Going into 2023, we are in an extremely volatile financial market. Between rising inflation and looming threats of recession, investors are looking to their financial advisers to translate market volatility and protect their assets now more than ever.

And it is not just younger investors worried about the financial impacts of a shifting market — 67% of American investors are worried about their retirement plans as a result of market volatility in 2022 (a 20% increase from 2021).

Now is the time for advisers to prove their worth and placate their clients’ fears for the future. A recent survey from Envestnet breaks down three underrated areas where advisors can serve investors: short-term finances, long-term finances, and providing clarity for their overall financial picture. Let’s break down these three areas in detail to learn more.

Flex your finance know-how by organising your client’s short-term finances
In a constantly changing market, wealth advisers who help clients manage their short-term financial needs can stand out. In fact, even in good times, American investors could use help with short-term money management.

Envestnet’s survey found that 39% of Americans do not formally organise their short-term personal finances at all, with 20% of affluent Americans not bothering to either. Of those who do organise their short-term finances, younger millennials are more likely than older generations to organise them with online platforms.

These findings give two important insights for advisers:

• Whether times are tough or steady, organising short-term finances (such as rent payments, car payments, insurance payments, etc.) is a real need for American investors. It can help clients feel more at ease with their day-to-day stability.
• Adopting online platforms and digital solutions to organise short-term finances is key for providing additional value for younger and affluent clients who already organise their short-term finances in some way.

Demonstrate expertise in managing long-term finances
On the flip side, long-term finances are another area where American investors need advisers’ help. Nearly half (42%) of Americans do not formally organise or plan long-term finances. Contrasted with just 15% of affluent Americans who do not organise long-term finances, there is a clear gap in where advisers can make a difference for clients.

Generational differences
Surprisingly, 50% of Baby Boomer investors are not planning for their long-term finances in an organised way. With retirement right on the horizon, this is a crucial area where wealth advisers can step in and prove value.

Perhaps unsurprisingly, younger millennials are using online sources for long-term financial planning. A break from traditional wealth-planning strategies, this is an area where advisers can “enter the chat” and show their ability to provide long-term expertise along with emerging digital tools.

Regardless, in a market where long-term investing is under pressure and reliable portfolio construction is no longer a given, it is increasingly important for wealth advisers to guide their clients’ long-term strategy through the ups and downs of today’s market.

Provide clarity to your client’s financial picture
Lastly, one of the most important ways a financial adviser can provide value today is by giving their clients a clear picture of their financial health. Without knowledge of their current financial position, investors are unlikely to make progress, take action, or participate in meaningful ways to grow their wealth.

This is where financial advisers come in. Investors want it to be easy for them (54% of Americans wish there were a technology that handled their finances for them), so advisers should make it easy.

How can they do this? According to McKinsey, wealth advisors who build an all-weather asset management platform that is flexible, stable, and scalable can provide deep value and build client reverence, even in times of uncertainty.

Incorporating Docupace’s document management technology into your advisory services can streamline your backend, free up time to meet with clients, and scale as you grow by integrating with your other technology platforms. Learn more about our solutions here.

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