Mainebiz

V O L . X X V I I I N O. I V F E B R UA R Y 2 1 , 2 0 2 2 18 W E A LT H M A N A G E M E N T / R E T I R E M E N T F O C U S nothing new, but today the prevalence and acces- sibility of crowdsourced advice on trading platforms or online communities are overpowering. e days when money was a taboo topic of con- versation are gone. Instead, sharing everything from student debt to personal salary information is not just with friends and family but with audiences over social platforms. Young investors increasingly consider environ- mental, social, and corporate governance factors when making decisions. MB: Do younger investors bring new expecta- tions to the wealth management industry? DH: I think technology and the pandemic have changed how the wealth management industry oper- ates. is includes offering paperless onboarding and digital tools such as video conferencing, goals-based advice, and financial planning to see if they're on track to reach your goals in real-time with one easy login. Investors want things to be easy, info to always be at their fingertips, efficient and transparent. e days of paper applications, manila files, 100-page prospectuses and paper statements are by the wayside. Many of our younger clients have outside bro- kerage accounts, which they link up and integrate into our financial planning portal, allowing us to see all their assets in one place. is includes a bank, mortgage, student loan information, etc. MB: How do these changes affect the way your firm operates? DH: Keep reinvesting in technology and create a high-level digital experience that's customized and personal for the client. Gone will be the days of trudging into offices clutching a pile of paperwork at an appointed time. Erin Barry is CEO of Means Wealth Management in Bangor. Mainebiz: Are you seeing younger generations looking to invest their wealth in new ways? Erin Barry: First, we have to say each investor's financial situation is unique, and our responses are not intended to act as individualized financial advice. But yes, there's interest in new investments, some of which can be very volatile, meaning you can make, or lose, a lot of money quickly. Anyone considering any investment should first determine how it fits in with their overall portfolio and finan- cial plan. Just like one probably shouldn't invest 100% of their savings in the stock of one company, one also probably shouldn't invest solely in one of these vehicles. MB: Are you seeing new types of engagement by younger people in the market? EB: Younger investors want to be digitally engaged with the stock market. is might be through using apps like Robinhood or by using social media to seek investment advice. Even though younger investors may behave differently than older investors, they are interested and seemingly more so than generations prior were at their age. It is important that we help younger investors keep that interest while also making smart, long-term investment decisions. MB: Do younger investors bring new expecta- tions to the wealth management industry? EB: Younger investors are looking back at recent years and seeing overall market returns that well exceed the 10% long-term average annual stock market return. Living in an instant gratification society and looking for that quick return, we fear that some may feel the stock market is infallible and will continue to produce returns every year that are in the mid- to high teens. We have also found that many younger inves- tors want to be more involved in deciding what investments they do and don't want in their port- folio. Some are interested in green energy; others dislike particular companies based on their social views. It is our job to help find them a portfo- lio that still works towards their goals but also matches their beliefs. MB: To what extent are the expectations of younger investors shaped by the ability to ac- cess advice anywhere, any time? EB: Younger investors are turning to social media channels for investment advice and validation. ey may post to ask which cryptocurrency is the best or how to deal with a financial situation. Responses to their posts are almost instantaneous, providing that immediate gratification the younger generation is looking for. is is shaping the way the younger investor expects to deal with their advisor — they want that fast response and strong digital engagement. Fortunately, with technology today, it is very easy to provide and meet that level of expectation. MB: How do these changes affect the way your firm operates? EB: In an era where fad investing is rising in popu- larity and where one's availability to invest their savings is literally at their fingertips, we believe it is even more important for us to ensure we are educat- ing all investors. Because that younger generation is looking to obtain their information digitally, we as advisors must ensure we are prepared to meet these demands. at includes ensuring we have the appropriate channels in place to provide the digital experience these investors are seeking. » C O N T I N U E D F RO M P R E V I O U S PA G E P H O T O / C O U R T E S Y O F B I G E L OW I N V E S T M E N T A DV I S O R S L L C Means Wealth Management CEO Erin Barry and President Zachary Means say younger investors want to be more involved in guiding their portfolios. Ben Flood at Bigelow Investment Advisors says the availability of information allows investors to better align their portfolio allocations with personal preferences. P H O T O / C O U R T E S Y O F M E A N S W E A LT H M A N A G E M E N T I think technology and the pandemic have changed how the wealth management industry operates. — David Hanson IIS Financial Services

• Cover