2 Big Shifts in Wealth Management

There are two major trends that I believe are the most exciting things to happen in the wealth management world in a generation. These shifts are making the type of sophisticated investment strategies and comprehensive advisory services that used to only be available to the super wealthy accessible to a much broader range of investors – including many of my clients!

Here’s what you need to know…

Shift #1: Much broader access to alternative investments

As I’ve written about before 1 , contrary to popular belief, if your entire investment portfolio is split between stocks, bonds and mutual funds, you do not have a diversified portfolio! A truly diversified portfolio includes a variety of asset classes, including “alternative” investments that do not move in lockstep with the rest of the market.

Thanks to legislation, sophisticated investors with smaller pocketbooks can now invest side-by- side with the ultra-wealthy in private equity, private debt, commercial real estate, large-scale development and other alternatives. Whereas it used to take millions to get in the game with these assets, many now have minimums of just $50,000 or less.

Why am I so excited about this shift? Because I know that by including these assets, you can potentially enhance your overall returns while reducing your overall risk through greater diversification. Greater potential returns with lower potential risk? I’m in, and so are many of my clients!

Shift #2: Team-Based Advice

The ultra wealthy have always relied on a team-based model of advisory services, such as what is called a Virtual Family Office. These people don’t “just” have financial advisors. They have an entire team of wealth managers, attorneys, accountants, etc., who work together on their behalf, often as full-time members of their staff.

The ultra wealthy do this because they understand the truth of what Reid Hoffman, a billionaire entrepreneur and venture capitalist, once said: “No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.”

When it comes to wealth management, I’ve seen firsthand how collaboration can lead to outperformance. This is why the big shift from a single-advisor model to a team-based approach is so significant. When you have a team of specialized advisors all working together, they can leverage their collective expertise to provide more comprehensive, coordinated advice.

Perhaps you are like most of my clients, and your portfolio doesn’t happen to be valued at multiple millions of dollars. But just because you can’t afford to have a team of full-time professionals at your beck and call doesn’t mean that you don’t deserve that level of professional advice. You do.

That’s why I have formed Forward Advisors, LLC, a firm that takes advantage of this trend towards team-based advice. Through Forward Advisors I have assembled a national team of vetted experts including attorneys, wealth managers, insurance specialists, accountants and more who all collaborate with each other. We look at things from all angles to provide holistic and thorough financial planning for you.

Conclusion

These shifts are making wealth management more inclusive, exciting and tailored to your needs.

Whether your goal is to grow your wealth, protect it or use it to make a difference in the world, our team can develop a strategy that’s ideal for you.

See also: “The 5 Most Common Retirement Planning Mistakes that Women Business Owners Make”, “Using Buffer Assets to Address Short-Term Cash Flow Risks,” and “Will a Recession Wipe Out Your Retirement?”