As boomer adoption of technology increases and advisors prepare for the next generation of tech savvy wealth accumulators advisors can view this as a threat or opportunity. The only certainty is that what worked in the past will not work in the future.
Mobile, In the Cloud, Crowdfunding, Crowdsourcing, Outsourcing on the go, Social Media, Social Networking, Big Data and Cool Apps are but a few of the trends known today that will impact the financial advisory practice of the future.
As the seismic shift from digital immigrant to digital native occurs advisors will have to deal with a generation of investors demanding full transparency on what something costs and a digital delivery system that makes it available when they want it delivered.
One of these delivery systems is Crowdfunding. Advisors should be preparing themselves for the challenges and opportunities for their high-net-worth clients the Jumpstart Our Business Startups (JOBS) Act, signed into law in April 2012, will bring. Not to mention for the first time non-accredited investors will be able to invest in Crowdfunding raising additional questions for advisors to answer. Not to mention the need to make sure you know where “all” of your client’s assets are domiciled. Whether you agree with the SEC guidelines is immaterial – it’s the law!
If you are unfamiliar with the JOBS Act, or simply ignoring it, the following blog by Darryl Burma “Why Crowdfund Investing Matters to Financial Advisors” is well worth the read as it may save you a lot of time and counseling with your client’s down the road.