What advisors should tell clients about the 2024 COLA; private equity and impact investing

RETIREMENT: In 2024 the average monthly Social Security check will get a bump from the cost-of-living adjustment — but a relatively small one compared with recent years’ adjustments.

Mary Johnson, the Social Security and Medicare policy analyst at the Alexandria, Virginia-based Senior Citizens League, noted that the 3.2% expected for next year is still above the historical average of 2.6% for annual COLAs. But that doesn't mean retirees can expect to be flush with money in 2024, she said. Johnson said inflation may have slowed this year, but prices for many consumer goods and necessities remain elevated.?

Read: What advisors should be telling clients about next year's lower Social Security COLA

IMPACT INVESTING: The first private equity fund launched by Toussaint Bailey ’s impact investment startup Uplifting Capital drew $18.5 million in client assets toward sustainable infrastructure and socially responsible businesses.

"We set out to prove that you could build an institutional-quality portfolio of impact investments as a wealth management solution," said Bailey, noting that foundations, endowments and family offices have been making similar investments for years. "Our belief has been that this is just as appropriate and just as additive in the wealth management space, but it has to be scalable and it has to be personal."

Read: RIA clients invest $18.5M in impact startup's first private equity fund

PROFESSIONAL DEVELOPMENT: Hispanic Americans currently make up nearly one-fifth of the American population. They have become a powerful force in the economy, having contributed an estimated $3.2 trillion of economic output in 2021 — which would give them the fifth-largest GDP in the world if they were grouped as an individual nation.?

Hispanics' collective wealth is projected to grow to $113 trillion by 2050, according to a recent report by Finhabits (a fintech "created by Latinos for Latinos"). Many will be new to wealth, making them prime targets for a relationship with a financial advisor — if an advisor understands how to engage with them. Experts share their tips.

Read: How advisors can tap into the $113T Hispanic wealth opportunity

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