World Technology Summit: A Glimpse Into the FutureSubmitted by Reby Advisors | Certified Financial Planners | Danbury, CT on June 1st, 2018
By Bob Reby, CFP®
Spring is here, and Summer is just around the corner. I returned recently from a two-day action-packed World Technology Summit where the topics ranged from:
- The future of food (50% of our food costs are transportation)
- The future of health care (otherwise referred to as sickness care)
- The future of money (digital currencies are here to stay)
- The future of work (the virtual office)
- The future of traffic and transportation, etc.
What was fascinating about this conference is that most of the speakers and networking opportunities were with the founders of these innovative companies, including the progress and the challenges they have encountered.
It got me thinking about innovation in delivering financial planning and wealth management and the future of digital advice. I used to find, and still do, a yellow pad an effective way to deliver “what I would do if I were you advice.” It even motivated me to count how many yellow pads with meaningful stuff on them that were on my office desk. I counted nine (yes, 9).
Today we use software for retirement projections, investment analysis, privacy and cyber security protection, performance data analysis, and a myriad of other important things; even the fairly new trend of a speedometer-like visual that might communicate that you have a 70% success rate of retirement success. What does that mean? It kind of connotates that there is a 30% chance of failure. And, since there are no facts about the future, how can we conclude that? We’ve learned that a 70% chance of success is actually quite good.
Since one of the fundamental objectives of goals based financial planning is to reduce anxiety, provide clarity and direction, and if possible, additional peace of mind, we’ve learned that “scenario planning” has taken hold as a viable way to weigh financial planning alternatives while being open minded about remaining flexible as time goes on.
Fundamental questions like how much money do I need to not have to work anymore? What is the ultimate withdrawal rate so as not to outlive your money? Where should I get my lifestyle income when I experience a bad sequence of returns (crisis or severe market decline which historically occurs every 5-6 years).
These questions, among others, usually do not have direct, one-line answers. However, if many other insightful, empathetic questions are asked, most times thoughtful, customized recommendations can be formulated and delivered in simple, easy-to-understand terms.
The challenge is to keep communications clear and concise while implementing technologies that add value and accuracy to flexible scenario planning.
I think it is critical to study other industries that are more technologically advanced than the financial planning field. Identifying trends that may be here to stay, (i.e., human enhanced longevity), and marrying these trends with how we can better serve you, are what keeps us up at night.
Please feel free to provide any feedback or recommendations to us as well.
Buy Wealth Redefined: Charting the Way to Personal and Financial Freedom now or download a complimentary chapter at at www.wealthredefined.com.