Insights and Takeaways: Key Learnings from the Tiburon CEO Summit

In recent years, I have come to favor intimate conferences and events for their ability to deliver a?better ROI and attendee experience. My attendance last week at the Tiburon CEO Summit in Boston was a great example of this and the event exceeded my expectations. The presentations were excellent, supported by a lot of data and real world experiences, covering various topics in wealth management, investment management, and wealthtech. The networking opportunities were also awesome, providing a fantastic platform to connect with some of the most notable leaders in the financial services industry.

The keynote speech by Chip Roame , Tiburon Strategic Advisors Founder and Managing Partner, was the highlight of the event for me. Here are a few datapoints that stood out to and also some highlights from one other presentation:

1.?????? From 2012 – 2021, 70% of the growth in AUM and AUA was attributable to market performance versus only 30% being attributable to organic growth. Question: What are the right strategies for wealth management firms to execute on to grow their business versus having to be so reliant on good market performance?

2.?????? The time is now for wealth managers to pay attention to the “Slacker Generation” and have a GenX strategy. The generation that grew up on MTV is set to inherit wealth in the coming years from their Silent Generation parents and they are also entering a period of their peak earning years. Data point: GenX will generate an incremental $33.1T in investable assets by 2030, more than Baby Boomers and Millennials combined.

3.?????? The face of the wealth management client has changed. Women are a more important wealth management client than men – women are the primary or equal earners in 45% of consumer households and women are set to receive 70% of all inheritances.

4.?????? ETFs are still winning. While personalized indexing ($98B in net flows in 2022) and alternative investments (10.8% of AUM in 2022) have seen significant growth and received a lot of press in recent years, they are much smaller relative to ETFs which gathered $614B in new flows in 2022 (down from $1T in 2021).

5.?????? Annuities came back strong in 2022. Though they get bad press at times for a lot of different reasons, annuities had a record sales year in 2022 ($311B in 2022 versus $255B in 2021).

6.?????? The shift from accumulation to decumulation is on. Tiburon CEO Summit attendees said that “Decumulation & Retirement Income, Social Security, and Longevity Planning and Healthcare Insurance (including Medicare) Planning” are the most important financial planning services for mass affluent clients. Question: Are modern day financial planning solutions ready for the shift?

7.?????? Discount and online brokerage firms are alive and well. Of the $1.266T in net new assets gathered by wealth management firms in 2022, $543B was attributable to Discount and Online Brokerage firms (retail business only) versus $418B for Full Service Brokerage firms and $315B for Independent Advisors. ?

8.?????? Everyone agrees on this point - 100% of Tiburon CEO Summit attendees said that the importance of digital marketing will increase over the next five years. Personally, I think many wealth management firms are way behind in becoming world class in digital marketing.

9.?????? The convergence of workplace wealth and traditional wealth management is happening. Defined contribution plans had $9.3T in them in 2022 and strategic acquirers like Creative Planning and CAPTRUST have focused on retirement plan acquisitions. It was also interesting to hear workplace wealth as being defined to include more than just defined contribution plans. Question: Are wealth management firms prepared to help their advisors manage workplace wealth more effectively?

10.???? One of my favorite presentations during the event was by Tom Rieman, CPWA Rieman, Founder and CEO of Practice Intelligence. He had a great quote in his presentation that was also the title of a Barron’s article from September, 2022 he wrote titled; “Don’t Confuse Being a Better Salesperson With Being a Better Advisor”. He shared some NPS statistics from a 2021 Barron's Advisor / J.D. Power survey that showed 86% of investors rated their advisors as somewhere between “Poor” and “Average”. If you want to learn more about his presentation and Practice Intelligence, I encourage you to find Tom on LinkedIn.

Thoughts?

Marc

For more insights like this, please subscribe to Finding Real Wealth: https://www.dhirubhai.net/build-relation/newsletter-follow?entityUrn=6881258788419121152

To learn more about my consulting practice, please visit marcrbutler.com or my LinkedIn page at https://www.dhirubhai.net/company/marcbutlerconsulting