20 Predictions for 2039 (by Dan Richards)

We all know the past 25 years have born witness to dramatic change technologically, economically, socially.

But, what will the future bare?

“It is very difficult to make predictions, especially about the future.”
- Yogi Berra, Mark Twain, etc.

This quote opens the below article written by financial industry Guru Dan Richards providing his illuminating predictions for the next 25 years, summarized as follows:

Consumer Context:
- Retirement will be redefined by workforce sabbaticals taken every 5 years.
- Renting vs owning will increase dramatically to support mobility requirements to pursue careers around the globe.
- Lifelong learning to keep skills current will become the norm, in order to support the above.
- Regularly scheduled time unconnected from smartphones will become the norm.

Saving and Investing:
- Mandatory retirement plans will be accessible at any time, to help support the new retirement norm of workforce sabbaticals.
- Financial literacy will increase due to mandatory courses becoming included in high school curriculums.
- Investors will evaluate their investment performance by benchmarking against their network of peers.
- Personal spending habits and compared to our peers will be summarized weekly by our smartphones.

Financial Industry Landscape:
- Brick and mortar bank branches will be converted to community hubs and cafes.
- Alternative assets and non-traditional investments will be mainstream, as many investors focus on cash flow as the dominant method for selecting investments.
- One of the fastest growing investments will be pooled streams of cash flow from university graduates, in which students sign binding agreements to pay a percentage of their gross earnings in lieu of paying university tuition.

Role of Financial Advice:
- Financial advice will be a dedicated discipline like law and accounting, with a dedicated academic course of study, requirements for internships and clear path for progression from entry level to partner.
- The dominant practice model will be total wealth management, in which advisors help clients understand the financial implications of decisions in their personal and business lives, counselling them on tradeoffs and alternatives.
- As technology advancements continue to separate us from one another on a personal level, the desire for human interaction will lead to the return of investment clubs.

What to look for in your Financial Advisor:
- Exceptional expertise
- Outstanding people skills
- A strong brand
- Innovation and adaptation

Click Here for the full article "20 Predictions for 2039" by Dan Richards