From Millennials to Robots: Managing Wealth in 2020

managing wealth in 2020
February 28th, 2020 0 Comments

It doesn’t matter whether you’re an ultra-high-net-worth individual or the owner of a more modest financial portfolio — wealth management is something worth mastering. Last month, we spoke about the challenges of managing wealth properly. This certainly applies to managing wealth in 2020.

It can be quite complicated, and enlisting the help of an expert you can trust is often the only way to truly put yourself in the best situation. Fortunately, the wealth management industry is full of qualified teams of experts that are ready to help.

One of the things the best wealth management firms and financial services providers understand is that the world is constantly changing. In order to continue to provide the best services and stay competitive, they’ve got to stay on top of financial trends as well as the evolving needs of their clients.

In this post, we’ll look at some of the ways that wealth management in the United States is expected to change in 2020.


The Importance of Trust

This has always been a key element of good financial planning. After all, you want to be able to trust the professionals making investment decisions on your behalf. It takes a certain level of trust to build a deep enough relationship where the client and advisor understand each other and are on the same page. This is essential for peace of mind and achieving financial goals.

Unfortunately, individuals have historically lacked trust in their financial advisors. To see just how much, check out this survey from the AAII (American Association of Individual Investors) done just a few years ago.

It shows that only two percent of investors had “a lot of trust” in their financial advisor.

While the numbers have grown slightly in the last couple of years, they’re still low. People are looking for wealth managers that they can trust, and the firms worth investing in are making efforts to make it easier for investors.


Building Trust

The growing number of financial planning options available to investors means that wealth management firms need to meet client expectations now more than ever. In order to build trust and a better customer experience, smart wealth managers are making transparency a priority.

Transparent fee structures are one area of focus in particular that are shown to increase client trust. It’s no longer necessary to put up with an advisor who has a complicated or unclear fee structure.


Technology in Wealth Management

This may be one of the most dramatic ways in which the wealth management industry is changing. The advent of robo-advisors and better mobile apps that use artificial intelligence (AI) have forever changed the landscape of wealth management in North America and abroad. These are things that financial advisory firms will need to adopt in order to remain competitive in the coming years.



Each year, more investment management firms are offering services provided by robo-advisors. These are digital platforms that make automated financial planning decisions. They are driven by mathematical algorithms and require very little human intervention.

These digital advisors might make some investors nervous, but really, the technology has been around for years. It’s actually what many financial advisors have been using all along. It’s just now in recent years that it’s becoming available to the public and gaining serious popularity.

The main advantages of using a robo-advisor are the low costs and minimal hassle associated with asset management. Your portfolio will be rebalanced depending on your goals, time horizons, and the economic environment.

You can also make trades with much greater ease. Instead of needing to meet your financial advisor in person or call them, you’ll be able to instantly make a trade as long as you have an internet connection.

The potential downside to employing a robo-advisor is that you’ll have fewer investing options. You won’t be able to pick the specific stocks that make up your mutual funds or ETFs, but for most investors, this isn’t a big concern.

For many, having a human advisor that they can speak with is still important. It comes right back to trust. Luckily, robo-advisors haven’t taken over yet — finding an advisor you can trust, talk to, and meet with is still very much an option.


Managing Millennial Wealth in 2020

The oldest Millennials are about to turn 40 years old. That means that more wealth is passing into the hands of this generation. And Millennials have different expectations when it comes to wealth management.

The biggest difference is probably their level of comfort with technology. Instead of needing to meet with their financial advisor face to face, they’ll be more comfortable interacting entirely with a digital app, so long as their needs are met.

More than the desire to shake hands with a trusted professional who knows what’s going on on Wall Street, Millennials will want technological efficiency when it comes to handling their money. Lightning-quick onboarding processes and snappy responses to questions via social media will be of top priority.

Operating in the digital realm also means that it’s easier than ever for Millennial clients to change wealth managers if they become dissatisfied. This is good news for the tech-savvy investor — there will only be more and better options for managing your wealth with efficiency and convenience.


Need a Financial Advisor? What to Look Today.

The fact that the best financial advisor is the one you really trust isn’t new. Letting someone else handle your money requires a relationship built on trust and understanding, and this has always been the case.

Still, the financial management world is constantly changing. It’s important to make sure you’re asking the right questions in order to put yourself in the best hands possible. Here are some things to be sure you ask a potential wealth manager.


What’s your investment philosophy?

There are a lot of possible answers, and finding someone who shares the same values as you is key. Even if you don’t exactly know how you’d like to manage your investments, this question gives you a chance to see the approach the advisor will take.


Do you have many long-term clients?

As a follow-up question, you can also ask how long they’ve had these long-term clients. Clients that stick around for many years are a solid indicator of quality wealth management. It means the advisor is skilled at keeping clients happy, which means they’re more likely to keep you happy.


When and how will we communicate?

Email, text messages, phone calls… There are plenty of different ways to connect with someone, and chances are you have your preference. Finding a financial advisor who is willing to communicate with you in the way you’re most comfortable with goes a long way. Be sure that they’re also willing to touch base with you as much as you’d like.


Looking Ahead

However your wealth interacts with the capital markets, 2020 has the potential to be an exciting year.

More than ever before, there’s ample opportunity to get involved with new technological innovations in the investing world, and the standard for customer service is only rising. It doesn’t matter if you’re excited about new technology or prefer to stick to what you know, the outlook can be good as long as you have a trusted advisor by your side.

By taking the time to learn more, you’ve already taken the first step in achieving your financial dreams. All that’s left is to make sure you’ve got the right experts at your side. Once you know what to look for, that shouldn’t be any trouble at all. 2020’s already up and running — are you ready to manage your wealth?


We Can Help

There are few things that affect as many areas of your life as your wealth. Treat it with the attention it deserves and it will repay the favor. Whether you’re thinking about retirement or estate planning or want to use your wealth to provide for younger generations, proper wealth and asset management is what will make it happen.

At Saddock Wealth, we bring years of wealth management experience to the table and can help guide you toward financial prosperity. Make sure your wealth is in the right hands and ready to grow in 2020. Schedule a meeting here, and we’ll discuss your best options.



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From Millennials to Robots: Managing Wealth in 2020
What's it like for someone to be managing wealth in 2020? Read on to find the latest details of AI wealth management and what Millennials prefer.
Wealth Management