What Is Wealth Management?
Wealth management is a branch of financial services which deals with complete financial planning including wide-ranging guidance on a client’s financial situation, covering investment management, estate and tax planning, accounting, retirement planning and even legal guidance if required.
What is the impact of Covid-19 on wealth management?
COVID-19 changed the way wealth managers were operating. The stock market has become highly unpredictable. Due to continuous lockdown, unemployment is at all time high, all major economies are going to witness decline in their GDP. Apart from the impact of pandemic, the political environment, technological advances, and regulatory changes, there are a number of factors impacting the wealth management industry. Recent wealth management trends show the old way of doing things will no longer be fruitful. While the pandemic brings unprecedented challenges, there are opportunities for those who adjust and adapt. We take a look on some of the major trends that can help wealth managers and clients to get best return on their investment.
1. Digital Channels
The pandemic forced every business to go digital. Some of them were quick to adapt. Wealth managers need to make their operations 100% digital. This will help them reduce their cost as well as operate without any disruption. Many startups are quickly moving ahead of established players.
2. Revisit your wealth planning
Covid-19 has changed the scenario. Many favourable investment options have now become totally avoidable. Clients need to proactively check their investments and properly analyze them. If you are not able to do it yourself then you can take help of professional wealth managers, such as Volpe Financial Solutions wealth management. They will listen to your goals and help you in finding an ideal insurance and investment solution to fit your personal or corporate needs.
3. IT and Tech Investments
IT and Tech were producing below average returns before the pandemic. However, these sectors have become super hot as the pandemic spread. Many companies registered unprecedented growth and the trend is expected to continue even after the pandemic is over. So, if you were ignoring these sectors now is time to get in.
4. Tackling Unemployment at micro level
Coronavirus has also impacted employment across the globe. According to data from International Labour Organization, close to 2 billion workers across the globe are struggling to make ends meet. This can force a major portion of the community to remain jobless or do temporary jobs at low income. It will take at least 2-3 years to the regular job market to become normal. So, what is the solution? Why can’t you think starting a quick revenue generating business within your community? This will not only help the unemployed people to get a job and respectable income but it may be an opportunity to build a great company of the future. If you are thinking that funding can be a major issue, then you can try Community Fund Raising. You can even take help of professional wealth management firms. There are many organizations who can help you in getting this executed without any charge as their CSR commitment. To get more tips on community fundraising, click here
As I suggested you to launch your community business, I have an important suggestion for you. I am sharing this because many people who are new into business generally can’t think of it. There are certain rules and regulation to operate any kind of business, which you must need to comply with. Failing to do so may bring penalty or suspension of your business license. For example – New York Car dealer bond. What is this? A $20,000 bond is mandated by the NY DMV for all New York auto dealers that sell 50 cars a year or less. If you sell 51 or more cars per year, you will need the $100,000 bond.
You must get a list of compliance to run your business without any problem. You can check online or take help of professionals in this field.
Wish you a successful year ahead!