The financial planning industry is undergoing a massive change. While financial planners will traditionally cater to middle-aged or older individuals, Millennial and Gen Z cohorts are also looking to find their financial footing. With the rise of newer avenues such as social media, wealth creation has taken on a new meaning, and the path to financial freedom is now more sought after than ever!
As financial planning evolves, the onus of adapting to these various needs falls on financial advisors. “We hope to bridge the gap between us and our clients,” says Xerxes Mullan, Founder of global advisory Avestar Capital. Financial advisors might lose out on critical demographic groups seeking financial help and guidance if they are not quick to act. The pandemic and the ensuing global lockdown forced individuals to take a pause and realize the importance of planning finances. This also led to an increase in remote jobs as people started working from their homes. All the above factors have contributed to the reshaping of financial planning today. However, there remain specific gaps that need to be filled.
“Every client has highly specific needs, and our team of advisors and investment professionals create tailored financial solutions,” says Shilpa Konduri, President of Avestar Capital.
Globalization and the pandemic transforming the world
Greater global connectivity, driven by technology, has enabled greater mobility. Globalization has allowed people to move across countries, with companies looking to hire talent from anywhere in the world. Therefore, distance is immaterial today.
The COVID-19 pandemic and the lockdown meant that people were working from home. But this did not hamper day-to-day functioning, and people have continued to prefer working from home. This shows that locations do not matter anymore. You could be almost anywhere and access a wide range of resources. Avestar Capital is catering to this section of people with a global lifestyle and, thus, complex global balance sheets.
Navigating foreign financial institutions and complying with the rules of your home institutions is a tall order. Avestar Capital bridges this digital gap and caters to clients with cross-border economic interests. It is crucial to have experts and advisors who can help you with risk management, tax efficiency, and managing assets across countries. “Every client has highly specific needs, and our team of financial advisors and investment professionals creates tailored financial solutions,” says Shilpa Konduri, President of Avestar Capital. Being an independent advisory, the team at Avestar Capital can personally work with each client to understand their targets and work on a partnership model in tandem to achieve their goals.
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Connecting with Millennials & Gen Z
Millennials were born between 1981 – 1996, and Gen Z was born between 1997 – 2012. The older age groups from these generations are actively seeking financial advice. As they begin their financial journeys, they are receptive to working with professionals and expect a technology-driven financial planner.
Avestar Capital understands the nuances of each generation’s financial goals and is guiding them with high-quality, extremely relevant advice.
Millennials experienced the Great Recession from 2007-2009 and, as a result, had to settle for lower wages and delayed home ownership. As they recover their lost wealth, millennials are in a prime position to plan their financial futures. They have seen their parents or grandparents suffer losses during economic downturns and hope to protect their wealth and financial interests as best as possible. Millennial women are also more financially independent, hold more agency, and are in control of their finances as opposed to women in previous generations. This indicates a greater financial understanding as they are willing to connect with financial planners to help achieve their goals. Merrill Lynch notes that 75% of women under 45 manage their own finances.
Similarly, Gen Z is very early in accumulating wealth and has very different goals from the Millennials. They are more financially aware and proactive about investing, home ownership, and retirement savings with knowledge about cryptocurrency and stocks.
One of the significant markers of Gen Z is that they are demographically more diverse and therefore demand a wider representation of racial and ethnic minorities. They have grown up with access to the internet and social media and expect instantaneous information.
With a racially diverse and primarily women-led team and the use of technological intelligence, Avestar Capital aims to meet Generation Z exactly where they are.
Each generation will consume and process information differently and need different methods of communication. Avestar Capital understands the nuances of each generation’s financial goals and guides them with high-quality, extremely relevant advice.