Spectrem Group

Preferred Financial Education Methods

Learning is a process that never stops. People are constantly learning throughout their lifetimes. How each person chooses to learn is as varied as the person itself. Some people love to learn through hearing an expert on a topic speak, while others learn through reading about things they would like to gain more information regarding. Other people also like to watch videos to gain information that they are looking for.

Are You Using Your Bank’s App?

“There’s an app for that” is something that is often heard by individuals when it comes to different ways they can utilize their phone. Apps are a simple way to interface with companies or providers of a variety of services on a mobile platform. These apps often have a more mobile-friendly version of the services available through a website, or in some cases, services and features that are only accessible through the mobile version. With the continued increase in the usage of smartphones and mobile technology, it is not surprising that financial institutions have begun embracing the concept of making sure they have a robust app to accompany their services.

Are Millionaire Investors Friends with Their Advisor?

There is a fine line between professionalism and friendship that many relationships do not cross. Many individuals have seen their physician, accountant, or lawyer many times over several decades of working together, which brings a familiarity to the conversations and interactions, but might stop short of being viewed as a “friend”. Other individuals start these relationships from the perspective of friends, and it develops into a professional interaction as well. The relationship between a financial advisor and investor is very similar, with some being very close friends with their advisor, while other investors keep a more professional relationship.

Influence of Social Media Influencers

The occupation of “Social Media Influencer” is a fairly new occupation that describes an individual that makes their living through posting on social media, and that posting influences other individual’s habits. The income can be derived from a variety of sources, from direct donations, to corporate sponsorships, to merchandise sales. The more followers, or fans, an individual has on their social media platforms, the more they will be compensated for showcasing a product or service on social media. Corporations often will compensate individuals for appearing with their product, or using their product while posting or participating online. Nearly every industry has influencers, and the financial industry is no exception.

Top Three Wealth Management Firms

The financial industry is the second largest industry in our country, second only to hospitals and medical insurance. This creates an environment where there are a multitude of financial firms for investors to choose from, which can also create confusion on where to go for support and wealth management. This does, however, allow for investors to find the firm that works best for their specific situation and individual preferences.

Essential Digital Tools for Wealthy Investors

The digital landscape has changed significantly in the past few decades. What previously used to only be accomplished in person can often be accomplished through digital platforms now. Individuals are becoming increasingly comfortable with conducting transactions online. Younger investors are more comfortable with online activities, as are investors at higher levels of wealth. Given the increasing capabilities of online platforms, what available digital tools are the most essential?

Where to Go for News and Information

This recession has left investors reeling, not knowing where to turn for information regarding the economy, investments, or basic news. Times of uncertainty leave many individuals seeking out information, trying to make sense of what is happening. The question is, where should investors turn to for this information? How do investors prefer to conduct their financial research? What news sources are used for information about the economy and stock market? What about specific investments, where is the best information source?

Financial Resolutions for 2023

Often within the first few days of a new year individuals sit down and write out a list of resolutions. Sometimes the list is only one or two items, while others have a laundry list of the things they resolve to do differently. Some of the most common New Years resolutions are to live a healthier life, to start working out, and other actions that are meant to improve one’s life. This obviously cues a huge insurgence in gym memberships, meal or food delivery programs, and organizational tools. Another common resolution is for individuals to get a better handle on their financial life. This can mean something as simple as putting together a monthly budget and sticking to it, or it can be more comprehensive in nature such as hiring a financial advisor or developing a financial plan.

Factors Influencing Advisor Loyalty

The dictionary defines loyalty as the act of being loyal. Loyal is defined as being faithful to an individual, institution or a product. Loyalty is something that individuals seek in their relationships, friendships, and professional interactions. Loyalty is also something that is given when an individual or an institution deserves it. Various factors can impact loyalty in both personal and professional relationships. Knowing the factors that impact loyalty can benefit both parties in the development of loyalty. For financial purposes, investors develop loyalty for many different reasons, but some actions an advisor can take will make a much larger impact on loyalty than others

Telephone vs Email: Which one is better?

Communication preferences are as unique as each individual, with some preferring to communicate through the telephone, video chats or in person, while others prefer the written word and communicate through email or text messaging. The topic of the communication greatly influences what method is preferred, as does the age of the individual. Knowing how individuals prefer to communicate can often help deepen relationships. This applies to relationships with financial advisors as well, so properly explaining to advisors what method of communication is preferred can be very beneficial in solidifying the advisor/client relationship as well as allow investors to articulate their needs more clearly.

Getting Social on Social Media

Social media is here to stay, and more and more investors are joining various social media channels every day. New social media outlets are also being added regularly. What social media platforms are used the most is largely dependent upon age, as younger generations are typically the quickest to adapt to new social media platforms, while older investors take more time to embrace new platforms. What social media outlets are the most common? What are some of the more emerging social media outlets?

Should Your Advisors Talk to Each Other?

Some investors have multiple advisors, deciding to work with each advisor for various reasons, primarily because they prefer to not have all their assets in one place. The idea of not wanting to have all your eggs in one basket so to speak. There are other investors who use multiple advisors because there are specific investment objectives that each advisor serves for the individual. Investors must make a choice when working with multiple advisors if they want these advisors to communicate with one another. The reasons to have these professionals communicate with one another is obvious, but how does it impact their relationships? How does the current recession factor into these interactions?

Who Is Replacing Their Advisor?

It is no secret that the past year has been very challenging for the economy, and for investments. Many wealthy investors have seen the values of their portfolio decline from their 2021 values. This may cause some investors to reconsider their relationships with the financial advisor that selected the investments, despite the fact that the advisor can’t control what has happened to the economy. During down economic periods investors become more aware of their investments, sometimes have a desire to become more involved, and are evaluating their relationship with their advisor in a more critical manner.

Does Increased IRS Agents = Increased Trust Accounts?

The Inflation Reduction Act infused $80 billion dollars into the Internal Revenue Service, likely resulting in a significant increase in regulatory oversight. This increase in tax scrutiny should cause investors to consider their estate distribution plan to ensure minimum tax liability. Has the trust industry seen a change in the number of accounts or assets in the past few years as a result of the increase in oversight?

How Many Advisors Is Enough?

“Don’t put all your eggs in one basket” is a phrase that is often offered up as a piece of advice to caution someone to not count on one specific thing or person. This advice is often applied to financial situations, such as not investing all of one’s net worth into a single investment, suggesting that broad diversification is a better asset allocation strategy. Some investors also apply this to financial advisors, believing that having multiple financial advisors prevents having all their financial “eggs” in one place. What percentage of investors utilize more than one advisor? Does this approach accomplish the desired objective?

Investing and Finances with Generation Z

Generation Z, those adult investors between the ages of 18-26, are entering the workforce and investing. These investors look at wealth, investing, and work very differently than other generations. While many older investors may think it doesn’t matter what these young investors are thinking and how they make decisions, they may want to rethink that stance, as these investors will be the future of our economy and workforce. Knowing what these investors value and prioritize will direct workplaces, the economy, and the financial markets.

Politics Among Top Concerns of Investors

The political environment has been very volatile and continues to create uncertainty and concern among investors. Mid-term elections have been in the spotlight and continue to add uncertainty to the political landscape. Government gridlock was very evident through the mid-term elections and shows a nation divided in political affiliation. Some investors are more concerned about political issues than other investors. Are you concerned about the current political environment?

Where Wealthy Investors Find Advisors

The choice of what financial advisor, if any, to utilize is one that wealthy investors should not take lightly. This relationship has the potential to dramatically impact future financial success. Determining what advisor to hire can be as complex as hiring a physician, attorney or accountant. How investors find their advisor, or how the advisor finds the investor, is something that has changed and evolved over the past several decades. How are these connections being formed in today’s environment?

Favorite Cable News of the UHNW

Gone are the days of only being able to obtain news and information on the television through the basic channels. Television watching has evolved significantly over the past several decades, going from turning knobs to change between the three to five channels available, to remote controls and hundreds of channels to choose from. Most individuals would say they are thankful they don’t need to walk across the room to change the channel, however many people feel that the quantity of choices on cable television has become too many to choose from, making it challenging to know what programs to listen to and which to ignore. Investors choose every day what cable news they are looking at, and those that they feel skeptical of. Investors are also looking for more from their cable news sources. What news sources are followed most commonly among Ultra High Net Worth (UHNW) investors, those investors with a net worth between $5 million to $25 million? What are these ultra-wealthy investors looking for from their cable news sources?

Do You Dine with Your Advisor?

Sitting down and enjoying a nice meal with someone often puts the relationship on a different level. The conversation is often more relaxed, and the individuals can get to know one another on a deeper level. Many investors see their financial advisor primarily at their advisor’s offices, although sometimes they go out to eat and enjoy a meal with their advisor. Some investor segments are more likely than others to join their financial advisor for a meal. Besides dining out, there are also many other activities that an advisor can invite their clients to, which may or may not enhance their relationship with their client.

What to Do With $100,000?

Imagine someone gives you $100,000 and you must determine what to do with it. Would you save it, invest it, buy something? If you invested it, how would you allocate that $100,000? Would you be making these investment decisions on your own or would you enlist the help of a financial professional to help you allocate the $100,000?

Factors Impacting Advisor Loyalty

Investors have many choices when it comes to their financial advisor, and they often are solicited to change advisors or consolidate their assets. What keeps investors from continually changing advisors, besides the hassle, is loyalty to their current advisor. How loyal an investor is to their advisor is dependent upon a wide variety of factors. Each person has to decide just how loyal they will be to their financial advisor. There are many factors, however, that investors agree impact loyalty to an advisor.

Wealthy Investors Attitudes on The Economy

The economy over the past year has been anything but ideal. Investors of all wealth levels have seen some significant asset value changes as a result of the economy and volatile stock market. Everyone, both financial professionals and investors, are hypothesizing how long this economic decline will stay. Investors not only have to worry about the economy, they must also worry about whether their household assets will decline, and the financial health of the company they work for.

Changing Advisors in the Recession

This year has not been a very positive one for the stock market or the economy, resulting in the US entering a recession. These challenging times can often cause investors to examine their investments more closely and want to become more involved in the daily management of their investments. It can also cause investors to examine the relationship they have with their financial advisor and decide to look for someone new, or make the decision to hire a new advisor. What investors have already made changes to their advisor since the start of the recession? Are more investors considering firing their advisor? What is causing investors to consider firing their advisor?

Ancestry and Investing

Where one’s family came from can have a significant impact on an individual. Favorite meals, appearance, mannerisms, and habits can all have origins in where their family originated from. When someone’s family has been in the United States for many generations this may be less noticeable than for someone who is first generation. Do family origins impact other components of an individual’s life? Will investor’s risk tolerance or investment choices be impacted by their family’s nationality?

Top Factors Influencing Financial Decisions

Investors have an immense number of factors that could influence how they make decisions and look at their financial life. Sometimes the influences are easy to see and understand, while others are more subtle and less noticeable. It is challenging for investors to not only reconcile these influences, but also to identify them. Knowing why you are making a decision can often be just as important as the decision itself.

Investors More Involved in Portfolio Management

The DJIA has plummeted by over 6,000 points in the past year, with huge swings throughout the process, causing concern amongst even the wealthiest of investors. The market decline has caused many investors to reevaluate their investments and their financial plans. Investors are needing to make choices regarding what they will do as a result of the market volatility, and how concerned they should be regarding this issue.

Inflation Fears Among UHNW Investors

Increased fuel costs, grocery bills, clothing, and more are all impacting investors at varying levels. Even the wealthiest of investors are not immune to these price increases and other impacts of inflation. Inflation in the most simplistic terms is an increase in the cost of goods and services. This deteriorates purchasing power for every investor. Often this happens in a gradual manner over the course of many years, however inflation has been much higher than normal in 2022.

Impact of Recession on Advisor Relationships

A recession is typically determined as the economy having two consecutive down quarters. However, it isn’t as cut and dried as that because everything regarding economic information is looked at in arrears. This makes it so often a recession is not declared until months after the recession has occurred. This declaration comes from the National Bureau of Economic Research, and they look at many different data points, not just stock market movements. Many investors feel we are in a recession, or at least a significant stock market downturn. How are investors responding to this market decline with regard to their relationship with their financial advisor?

How Many Advisors Are Enough?

A good financial advisor can provide financial peace of mind, guidance in decision-making, and critically needed education. One advisory relationship can provide everything an investor needs, while other individuals need multiple advisors in order to meet all their needs. Just how many advisors are enough? Is there an ideal number of advisors?

Why Investors Fire Advisors

As with a marriage, no one ever enters into a relationship with an advisor with the expectation that they will leave the advisor for someone else, or to manage their investments on their own. Unfortunately, sometimes it becomes necessary to stop working with an advisor and begin working with a different advisor, or to even start managing assets without help. This doesn’t happen too often, and the reasons for it occurring vary.

Wealthy Investors Are Optimistic

The stock market and economy has been a roller coaster ride throughout 2022. The stock market has had huge ups and downs, and investors are experiencing increased inflation, increased fuel costs, and a struggling economy. Logic would think that this would be enough to make investors pessimistic about their financial future, yet many investors are not.

Where Financial Education Lacks

Financial literacy is a hot topic among financial service providers. Every financial website has different levels of financial education and provides different types of education. These educational resources are helpful for investors to become more financially literate, but are they meeting all of the educational needs investors have regarding financial topics?

Top Digital Tools for Millionaires

Millionaires utilize digital tools for information and communication in every aspect of their lives. The pandemic changed the minds of many of those investors who were previously hesitant to fully utilize digital technology to communicate with family and friends. There are a wide variety of digital tools that are available to investors, although not all of them carry the same importance among Millionaires.

Essentials of Estate Planning

No one wants to discuss the dreaded topic of their own death. Despite the inevitability of death, it is something that most people will go to great lengths to avoid talking about it. Usually, the topic is brought up by an attorney, financial advisor, or a loved one. There are many steps in the process of legacy and estate planning, some of which require a professional. How prepared are investors for their end-of-life and estate planning needs? Unfortunately, many investors are not as prepared as they need to be, so it is important to accomplish the essential components of legacy planning.

Do Investors Read Print Media?

Many people feel that print media is dying, especially with the increase in internet usage and availability of online versions of print media. Despite the obvious decline in this source of information, investors are still using this media platform to access investment information and news.

Why Investors Fire Advisors

Wealthy Investors Are Optimistic

Where Financial Education Lacks

Top Digital Tools for Millionaires

Essentials of Estate Planning

Do Investors Read Print Media?

Who Invests in Crypto?

Cryptocurrencies have been volatile recently, leading many to question the future of this relatively new, but increasingly popular, investment type. Are cryptocurrencies merely a trend or an important component of the portfolios of affluent investors?

Who Qualifies for Wealth Management?

The definition of wealth management has changed over the past several years, as has the number of investors who feel they are eligible for wealth management. Wealth management has previously been reserved for only ultra wealthy households, which is not the case any longer. What types of investors feel wealth management is suitable for themselves? Who feels they qualify for wealth management?

Millionaire Actions in Volatile Markets

The stock market has been extremely volatile in 2022, taking a rollercoaster ride of ups and downs resulting in losses over 15 percent. While in theory most investors understand that the stock market has ups and downs, it is challenging to keep that in mind during the “down” times. Do higher levels of wealth make an investor immune to the concerns of the volatile stock market? Are investors making any changes to their investments because of the volatility?

Inflation and Millionaires

Inflation is over eight percent right now, the highest levels since the early 1980s. This is impacting pricing and expenses for investors all over the country, and at every level of wealth. Investors are all contemplating how long the current rate of inflation will last, what the causes are, and what actions, if any, they need to take because of these high levels of inflation.

Including Beneficiaries in Estate Planning

Discussions regarding end-of-life and asset distributions are challenging for most investors. Facing one’s own mortality is difficult, yet a necessary part of proper estate planning. Estate distributions are notorious for causing conflict among family members, and without proper planning can result in a significant loss of estate value. Families play a significant role in estate planning and distributions.

Choosing an Advisor

The decision to hire a financial advisor is one that shouldn’t be entered into lightly. Many factors should be considered, and the most important traits are dependent upon each investor. Weighing various factors when considering hiring an advisor is critical to ensure that investors hire the right advisor. Many of the most important factors are the same regardless of investor segment, however there are some important distinctions among investors in what variables are the most important when choosing and retaining a financial advisor.

Student Loans for Generation Z

College costs and student loans have been a highly debated topic in the past several years, with the conversation becoming heightened in the past few months. In late April 2022 there has been talk of forgiving up to $10,000 of student loan debt through executive order. This has been met with both praise and criticism. The newest generation facing the cost of higher education has some specific opinions about the concept of the government paying off student loans.

The Permanence of the Pandemic

The Covid-19 pandemic has been around for over two years, wreaking havoc in many areas of life. This pandemic, masking, and shutdowns have been challenging for everyone, regardless of what personal beliefs one has regarding the topic. Some areas of the country have handled the situation very cautiously, while others began operating close to normally quite some time ago. Some individuals feel that we need to move on and get back to normal, leaving Covid-19 and the pandemic in our rear-view mirror, while others feel that the pandemic will be an ongoing issue for many years.

How Generation Z Makes Career Decisions

Generation Z currently makes up about 20 percent of the U.S. population, with ages that range from 9 years old to 25-26 years old. These individuals are entering the workforce and changing the landscape of what is expected from employers. Generation Z investors have different priorities and are making their career decisions differently than generations before them.

Is Wealth Management Too Expensive for Investors?

One of the reasons many investors never find an advisor or seek wealth management is because they believe that wealth management is too expensive for the services they need. In fact, according to research conducted by Spectrem Group with investors with $100,000 to $25 million of net worth (not including the value of their primary residence), a quarter of investors believe that wealth management is too expensive. Forty percent of investors are somewhat neutral regarding this idea, and just over a third of investors are open to engaging in wealth management.

Is Fighting Rising Fuel Costs Futile?

Investors everywhere are feeling the pain of rising gasoline costs. Seemingly every day the prices at the pump are changing dramatically, giving investors whiplash at how quickly prices are adjusting. According to the Bureau of Labor Statistics, gasoline prices rose 38 percent from February 2021 to February 2022. Investors all over the country are talking about rising costs of gasoline, and everyone has a different strategy they feel the country should take regarding this topic.

Facebook Loses The Top Spot

For many years Facebook has been the most commonly used social media platform among investors. Various social media platforms have come and gone, with only a few having as much staying power as Facebook. New platforms are introduced regularly, and some have started gaining traction, especially among younger investors.

Wealthy Women and Investing

It is no secret that men and women think differently. There is an entire industry dedicated to helping understand how these differences impact decision-making, relationships, and daily life. It is not surprising that men and women approach their financial lives and their investments differently as well. Understanding these differences can help many couples navigate conflicting attitudes towards their financial lives.

War in Ukraine Hits Home

The conflict in Ukraine has been going on since mid-February and does not show any signs of stopping in the near future. Individuals across the globe are concerned at varying levels regarding this conflict, and the potential further issues this can cause. There is access to information and news regarding this conflict on every platform: television, online, social media, and print.

Rising Gasoline Prices Fueling Investor Concerns

It is impossible to not be aware of the significant increases in fuel prices in the United States. Some areas of the country have been more impacted than others regarding the rising cost of fuel, but the increase is felt everywhere. According to AAA the cost for gasoline has increased 40 percent in 2022, making it an issue that wealthy investors must address in their lives. Investors also feel that certain things should happen to mitigate the rising cost of fuel.

Is the Pandemic Still a Problem?

Covid-19 impacted the lives of individuals across the globe. Regardless of which side of the debate you were on regarding masking and vaccinations, there has been a significant change in many areas of individual’s lives throughout the pandemic and ongoing. Initially it was thought that these changes would be temporary, and that life would be able to go back to “normal”. In some cases that was true, with mask mandates largely an issue of the past in most areas of the country. How do wealthy investors feel about the pandemic now, and are there issues regarding the pandemic that continue to impact their decision-making?

Inflation Tops Concerns for Investors

The United States has experienced more than 20 years of low inflation levels, with the highest rate being just over five percent in 1990. Baby Boomers and WWII investors remember this time, as well as the double-digit interest rates. Inflation is currently over eight percent, raising concerns for investors of all ages. While investors are worried about rising costs, are they doing anything about it?

Are Investors Crazy for Crypto?

Cryptocurrencies have been gaining popularity for over a decade, with the current size of the cryptocurrency market being over 1.5 billion dollars. This investment option has been most closely followed by younger investors, who are often the first to adapt to new technology, products, or investment options. Despite how large the cryptocurrency industry is, are wealthy individuals investing in crypto, or are they even familiar with this investment option?