Posted by fi360 Team on August 05, 2013
>>>> “What are the forces that will shape the future of the investment management industry over the next decade?”
That’s the question used to introduce a new report from State Street that posits it is the investor who will be most influential in setting the tone going forward. For good or for bad, investors have greater access to information than ever before and, coupled with provocative headlines and chronic instability of the financial systems, that is resulting in their decision to take action. For advisors, this means a number of things. For one, it means taking a more personalized approach to defining success. It also will require advisors to better understand investor behavior. In general, when investors act unrestrained, they act irrationally and often counter to their own best interests. It is therefore incumbent upon advisors to demonstrate to investors in what ways they are adding value and what it will take to achieve their financial goals.
Examples of bad investor behavior are further reinforced by another study that also came out recently. In New York Life Retirement Plan Services’ State of the Retirement Industry report, survey results show that investors are not saving enough, not taking advantage of employer match programs, and are being significantly impacted by the loans they take against their plan. In fact, nearly 20% of participants have an outstanding loan balance. That group is also more likely to make further decisions that negatively impact their retirement outcomes.
In short, these reports are furthering the narrative that a great opportunity exists to improve the state of retirement in America if the professionals involved in managing their investments can personalize the decision-making process and help investors understand how best to achieve their retirement goals.
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News and columns from the leading trade, consumer, and mainstream media:
From the organizations/associations/government/academia:
From the blogs:
Articles your clients are reading (or should be):
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