I talked about the changing landscape of wealth management and the metaphysical nature of the economy with Mike Consol on the Institutional Real Estate, Inc. Podcast. In this interview, I discussed the changing landscape of wealth management and the impact on wealth managers. Individuals are increasingly managing their own wealth and transactions, reducing the need for intermediaries. I argued that as wealth management becomes more personalised, the role of intermediaries must change dramatically.
I raised the following points during our discussion:
• The GDP of the United States could potentially reach $45 trillion and discuss the composition of this wealth, which is expected to shift away from traditional assets.
• Technology allows for more complexity in managing wealth by utilizing vast amounts of data to create financial products that didn’t exist before.
• The shift in access to information and changing attitudes toward financial services threatens the traditional private banking industry.
• The mobile era is transitioning into the Internet of Things, where data can be stored and accessed through various devices.
• The real economy has expanded to include not only the production of goods and services but also soft skills and software.
• The next generation’s value system will be related to networks and the ability to interact freely.
• A transition from institutionalized wealth to a networked world, where ownership of fixed assets becomes less important.
I also highlighted the changing mindset and psychology of wealth among different generations. The younger generations, such as millennials and Gen Z, have different priorities and perspectives on wealth compared to baby boomers. The younger generations are less interested in traditional asset ownership and more focused on transactional wealth that serves lifestyle purposes.
Overall, the interview covers the need for wealth managers to adapt to the changing landscape of wealth management, driven by individual control, personalization, and advancements in technology and data availability.
Listen to the episode:
Institutional Real Estate, Inc. Podcast: