Multi-retiree homes spark WealthTech interest, while SEC move threatens digital assets ??????
Multi-retiree households open the door for WealthTech, Robo-advisors courting human counterparts, and an audacious power grab by the SEC could spell disaster for innovation.
Retirement isn't just about kicking back anymore - it's about supporting our loved ones too! The future of retirement is looking a little different, with more and more households welcoming multiple generations (and retirees) under one roof.
Today, over 800,000 households have multi-generational retirees. By 2044, that number is set to skyrocket to 1.4 million! With rising life expectancy and living costs, retirees are under pressure to not only look after themselves but also lend a helping hand to their children and grandchildren.
A recent report by St James’s Place casts a fascinating (if financially challenging) light on this topic and WealthTech's ever-increasing potential to provide workable solutions.
The double-edged sword of increasing life expectancy and the perpetual rise in living costs isn't just impacting retirees - it's also bearing down heavily on the younger generation.?
Beyond grappling with their own financial hurdles, future retirees are bracing themselves to shoulder a range of future costs for their wider families:
?? 22% expect to contribute to everyday living costs
?? 16% will help with mortgage payments or the purchase of a property
?? 14% expect to budget for childcare
?? 14% will help fund family holidays
?? 14% of retirees will be looking for education payment plans
For those approaching retirement, times are changing. Historically a period for reflection, a time to “look after yourself,” many existing and future retirees are feeling the burden for their children, grandchildren, and beyond.
Surely an interesting opportunity for the WealthTech sector to provide personalized solutions for what can be challenging situations?
Where do you stand on personalized financial advice? Are you embracing the efficiency of robo-advisors powered by intricate algorithms? Or perhaps you yearn for the personal touch of a human advisor, with their empathy and understanding? What if there was a way to combine the best of both worlds?
Robo-advisors have firmly established their presence, offering a raft of benefits with their unbiased approach to investment advice. Their ability to present "value-aligned investment opportunities" also strikes a chord with the tech-savvy younger generation - the clients of tomorrow.
When you introduce Modern Portfolio Theory (MPT) into the mix, this is groundbreaking. While it may sound like a complex highbrow university course, it’s actually the way forward for automated personalized investment advice.
Robo-advisors boast an array of benefits:
? Lower cost
? Enhanced wealth management services
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? User-friendly interfaces
? Appealing to tech-savvy investors
However, there’s a catch. (Isn’t there always?)?
? You can’t have a deep and meaningful conversation with them!
The pinpoint accuracy with which robo-advisors can create an investment strategy that reflects your lifestyle, hopes, and aspirations is breathtaking. However, as yet, they can’t ask about the children, how work is going, what you’re up to this weekend, or connect on a personal level.
Behind the scenes, robo-advisors are expanding their reach and enhancing their importance, but that last mile, reaching out to clients, is not quite there yet. Thankfully, for many people, the current status quo provides the perfect mix.
In the dynamic interplay between regulation and innovation, reminiscent of the contrast between night and day or chalk and cheese, lies a delicate equilibrium essential for both spheres to flourish.
It is with a keen interest that we note recent revelations in the Financial Times, suggesting the US Securities and Exchange Commission (SEC) is looking to assert its authority within the digital assets domain - a blatant power grab. ??
What does this power grab involve, and what might be the long-term consequences?
A pivotal cornerstone within the FinTech sector (think DeFi and Blockchain), the digital asset landscape finds itself under scrutiny, potentially on the brink of significant upheaval.?
At the heart of this lies the cryptocurrency Ether, previously acknowledged as a commodity by the Commodity Futures Trading Commission and, albeit begrudgingly, by the SEC.
However, after a change of heart, the SEC has hinted at reclassifying Ether as a security, introducing a raft of regulatory obligations. But with countless cryptocurrencies in existence, does this move truly signify a significant shift? ??
Ether plays a vital role in innovation, serving as the currency within the Ethereum Global Virtual Machine. It's not merely a speculative cryptocurrency, but rather a fundamental medium for facilitating transactions within this groundbreaking blockchain framework, rewarding today's innovators and tomorrow's game-changers.
Labelling Ether as a security could potentially devalue this digital asset, jeopardize the innovative blockchain it underpins, and compel FinTech and WealthTech enterprises to seek alternatives beyond US borders.?
Now subject to litigation, will the SEC think again before sounding the death knell for cutting-edge innovation?
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