Climate Risk is Investment Risk
“Climate change has become a defining factor in companies’ long-term prospects… Climate risk is investment risk…”
- Larry Fink, CEO of BlackRock, the largest asset manager in the world, in his 2020 letter to CEOs [1]
Global warming is the greatest long-term threat to both our nation and all other nations in the world. [2] For years, U.S. national security agencies have been warning our country that global climate change has even become a significant threat to our national security. [3]
What does this mean to you? The income you generate from advising your clients will become more dependent...
Millennials, Financial Services, and You
Millennials now constitute 60% of the workforce in the U.S. and are critical to the future of the financial services industry, but few want to work in our business. In 2016, an Accenture survey reported “recent and upcoming U.S. college graduates indicate only 7% of graduates-to-be are interested in working in banking and capital markets… [1] ” What about the Millennials already working in financial services? According to a Deloitte survey, “nearly 40 percent of Millennial and the follow-on Gen Z financial services employees (excluding real estate) would prefer to work in the technology industry. [2] ”
If...
Actionable Ideas for You and Your Practice
As Financial Advisors, we face the challenge of demonstrating value during this pandemic. Over several months, I have researched and thought about actionable ideas you can take now to help clients.
To start, consider changing your value promise. The value proposition most Financial Advisors have promoted for years is to create investment plans and give counsel to clients on how to build wealth. However, awareness of our mortality has suddenly been thrust into our lives by the COVID-19 pandemic, which has killed more than 200,000 Americans. In addition to building wealth, advisors encourage clients to use the wealth they now...
Why Your Clients Won’t Make Investment Decisions Now And What To Do About It
Why Are Your Clients Investing?
Most of your clients are investing for the long-term. Their asset allocation may change with age, but a client should generally have at least a portion of their assets in the equity market for long-term growth. Yet, at this very moment, many of your clients feel so apprehensive over the upcoming election and its effect on their portfolios, they have frozen when it comes to making investment decisions. Or, worse, they are divesting in a panic. What can you do? Remind them of their investment goals and long-term financial plan.
Election Outcomes Don’t Matter to...
“For The Times They Are A-Changin” - The “New Normal” After The Pandemic
Our lives will not return to the “normal” we lived before the coronavirus. A “new normal” will become our reality. What will the “new normal” be? No one is certain, but there are trends we can discern which may help guide Financial Advisors, including attorneys and accountants, who give wealth management advice.
We will never again allow our society and economy to be dependent on China or any other nation.
Companies that produce products, medicines, or anything of critical importance to the health, safety, and defense of Americans will begin repatriating to the United States, whether they want to...