Financial Planning Trends in 2021

June 1, 2021

Financial Planning Trends in 2021 

As we hit the halfway point in 2021 the top financial planning trends have emerged. If you're a finance planner in Houston or anywhere else you'll have likely noticed these trends yourself. 2020 has changed the financial planning landscape like nearly all other industries. We see that directly reflected in the 2021 financial planning trends. In this article we'll look at the top five trends we're seeing this year. 

New Technology

To no surprise, digital transformation continues to affect every industry and individual at all levels. Emerging FinTech companies are shifting the game for financial planning and wealth management by making it easier to access, faster, and more secure. They're bringing interactive and data-driven tools and apps to provide a more seamless and user friendly experience. Investors can are keeping track of investments in real-time. Companies are leveraging artificial intelligence and machine learning to provide intelligent recommendations based on built in variables. 

Clients are Living Longer 

New studies are showing that we're living longer than ever before.  With exponential technology advancements this is not shocking new. For financial planners this means a new cash flow gap is being created post retirement that needs to be accounted for. Financial planners will need to re-evaluate conventional investment plans and account for these additional years. 

Diverse Customers

The workplace landscape has changed significantly with more women and millennials joining. A new group of women investors are seeking help from financial advisors to guide them in their finances and wealth building strategies. The next generation of investors, millennials, are wary about investing, which is forcing financial planners to adjust. The change is from a product centric mindset to a more customer-centric approach. Millennials are seeking experiences and personalization more than anything. 

Virtual Meetings Will Continue 

Virtual meetings became part of the new normal in 2020 due to the pandemic. Despite all indications that we're turning the corner with the pandemic, it doesn't look like virtual meetings will disappear. Forget the mindset that virtual meeting are temporary. They end up saving everyone a lot of time and when conducted professionally with the right technology setup (camera, lighting, background) financial advisors can keep it professional while still taking advantage of efficiency and convenience. 

Greater Focus on Retirement 

As more boomers hit retirement age financial planners in Houston and other cities across the nation are shifting their focus to retirement. This group of clients wants advice on not only traditional retirement, but alternatives like early retirement and working full or part-time during retirement. They’re looking for their financial advisor to provide guidance on all financial aspects of retirement, including long-term care, withdrawal strategy, tax planning, and more. Financial planners that are offering broader retirement advice are benefiting from the “retirement wave.” 

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