Financial Planning Trends to Expect in 2016


Preparation is key in every business endeavor. This year, there will be plenty of changes that will affect the financial planning industry and you must be prepared for them ahead of time. To help you out, this post will list four financial planning trends that will shape the industry in 2016.

Millennials are ready
Financial planners must expect more millennials to sign up for their services this year. Research by Bankrate revealed that millennials are extremely enthusiastic when it comes to investing in various forms of opportunities that can help them alleviate their financial status in the future. Most are willing to invest in cash, but there are also some who lean towards stocks and real estate investments. Surprisingly, a significant number of millennials are already reported to be saving up and investing for their retirement, even if it means saving for something they won’t be able to use until they reach retirement age. However, this generation has been plagued with various financial challenges, such as paying student loans, extortionate marriage costs, escalating real estate prices, and various other variables that are growing year-on-year. It’s best to start assisting them with a spending plan that they can follow and see how you can help them have a better and more flexible financial plan.

Financial planning tools
The rise of computing tools for financial planning will also be on the rise, and it’s no longer just for clients. There have been various discussions about robo-advisors disrupting and affecting the industry. But, the real question is: Should we be afraid of robo-advisory software and applications? Honestly, it shouldn’t affect the industry too much. Given the many issues with technologies regarding security, financial planners must use this situation as an advantage. It should challenge the way you communicate, connect, and offer your services to your clients. Be technically adept by using financial planning tools to make it easier to connect with clients by providing regular updates, to search for possible clients online, as well as strengthening your brand awareness. The best tip we can provide is to only trust the most reputable and efficient tools on the market.

Bitcoin investments
With an increasing adoption worldwide, Bitcoin is now a mainstream commodity. It is expected that in the first quarter, more investors will be purchasing the virtual currency, as they predict its value will reach more than $500. Financial advisers must be prepared for possible questions regarding this new investment opportunity so that you will be able to provide your clients with the best solution to their financial needs. Should I invest on Bitcoin? Will it help my portfolio? What are the risks and rate of ROI if I get Bitcoin/s? As the expert in financial planning, you must understand more than just the basics about Bitcoin and its investment possibilities. What do clients want to know about the virtual currency? Here’s some information FXCM shared regarding Bitcoin that might help you in understanding more about it:

  • It is a global digital currency that depends its value on distributed computing instead of gold, the economy, and banks.
  • Bitcoin can be stored online through a trusted operator or through a secured virtual wallet in a form of software or app for mobile devices.
  • No single entity controls the currency. Thus, it has a low risk of being affected by inflation or any economic ups and downs.
  • Production stops at 21 million Bitcoins to control its overgrowth in value and possible great fall.
  • An expected growth in value will happen next year as adoption continues to grow worldwide.
  • There are two kinds of Bitcoin ATMs: one, where you can only purchase the currency, and the other where you can buy and convert it to your chosen physical money.

Digital marketing
Just like any businesses today, digital marketing will play an important role in the industry in terms of marketing brands and creating awareness about individual’s services online. Social media has become a common tool for many individual financial planners, hoping to get noticed by possible investors and clients. Given the increasing dependence of people on mobile devices and the Internet, businesses and service providers have allocated a big part of their budget to digital marketing. But, it’s not as easy as you may think. Similar to physical marketing, it requires timing, strategy, and execution to get a higher return on investments.

As a new year is upon us, we expect various changes to happen in the industry. By preparing ahead of time, you are already a step ahead and ready to face the challenging adjustments in the financial planning world in 2016.

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Hi, I'm the founder of The Money Spot - I hope you have found the information on the site to be useful. I love talking about all things related to finance, business, marketing, blogging and the most important things - family and lifestyle. You can learn more about me here, or visit me on my other website Monster Piggy Bank.

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