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🥦 Iced Veggies are on FIRE

GM. This is the Advisorist. We're like a zesty bell pepper salad - we add color to your day.

Speaking of salad: I was out shopping yesterday for our Sunday BBQ.

The bill was a bit higher than usual thanks to an 18% hike in frozen veggie prices.

Is it too late to call off the BBQ?

Stay cool,

Jeremiah
CEO, Advisorist

In Today’s Issue 👇️ 

• Inheriting wealth is causing more anxiety than excitement

• Women's pandemic job recovery outpaces men's

• This summer could see 650K+ workers go on strike

• An advisor shares her journey from TradFI to AI 

• One-third of advisors may leave their current firms soon

Plus, all of the week’s biggest headlines and a couple of funny memes.

Let’s dig in…

Wake-Up Call: Inheritance Comes with Baggage 💼

The 'Great Wealth Transfer' is on the horizon, but a New York Life Wealth Watch survey revealed that beneficiaries are more puzzled than pleased.

• About 15% of adults expect a boon within the decade, but only 42% feel ready to manage it.

• Among women, 23% are more anxious (i.e. “uncomfortable”) than the 12% of men.

The anticipated windfall? These lucky (or not-so-lucky) adults anticipate an inheritance of $738,724. How do they want it?

• Cash (58%)

• Real estate (43%)

• Stocks and bonds (28%)

• Life insurance proceeds (24%)

• Heirlooms (21%)

• Annuities (14%)

Their game plan for the loot: pay debts (37%), bulk up retirement savings (35%), or save for future generations (26%).

However, concerns about inflation (58%), lack of savings (29%), healthcare costs (27%), and credit card debt (26%) dampen the excitement.

Not to mention, 44% feel they're tackling retirement single-handedly.

So what should we do?

This is a golden chance to prove our worth as advisors…

Helping clients navigate tax implications, estate planning, and offering sound advice on managing inherited wealth can ensure their financial wellbeing.

What’s your play? Hit "reply" and let us in on your strategy.

Top responses feature in our next edition. Make it count!

🎉 Is the “She-cession” Over in Time for Barbie Weekend?

The pandemic shook up labor market dynamics, fueling predictions that we wouldn't recover.

Fast forward to 2023, and these myths are falling apart:

“She-cession”: Over in time for Barbie weekend?

Women were heavily impacted by job losses early on in the pandemic and sparked the term "she-cession.”

Now, employment for women is rebounding faster than men.

Women's prime working years employment rate (25-54) is at an all-time high. Take that, "she-cession.”

Early Retirements: Not quite as we expected

Early in the pandemic, we feared a mass exodus from the workforce by those nearing retirement.

Surprise! Those aged 55-64 are returning to work as fast as younger peers. Retirement-age folks (65+) are slower to rejoin, though.

White-Collar Recession: A whisper rather than a scream

Tech layoffs stirred talk of a recession targeting white-collar workers.

The reality? High-skilled employees are moving into new jobs quickly, with very low unemployment in white-collar industries.

Missing Men: Late but catching up

Men aged 25-44 seemed less eager to re-enter the workforce. These groups are regaining their pre-pandemic employment rates, albeit slower than others.

Advising in the Post-Pandemic Labor Market

We can leverage these insights to guide clients as they navigate this evolving labor market:

Tailor strategies for women who've rebounded in the job market. Consider their new income levels and future job security.

Provide financial guidance for men aged 25-44, who may be experiencing a slower recovery.

Evaluate retirement plans of those aged 55-64 who returned to work. Balance their current income against long-term retirement goals.

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🗓️ Events This Week

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Top Headlines: Everything You Need to Know

Headline Roundup

• 650K+ US Workers Plan to Strike This Summer (BN)

• Housing Payments Skyrocket to Historic Avg: $2,656/mo (TH)

• Economists Forecast One More Fed Rate Hike In 2023 (BN)

• Biden’s Student Debt Repayment Plan to Cost $475 Billion (NY)

Markets and the Economy

• Blackstone First PE Firm to Hit $1 Trillion in Assets (NY)

• Bullish Outlook on Stocks at Pre-2022 Bear Market Levels (MW)

• Morgan Stanley CEO Says We’ve Seen The Bottom (FQ)

• Utilities Sector to Potentially Rally Up to 19-33% (MW)

Financial Services

• Banks Tighten: Loan Rejection Rates ⬆️ to 21.8% (FR)

• 401(k) Catch-Up Contribution Deduction Ending in 2024 (WJ)

• Opinion: Opt for 3% Asset Allocation in Alt Investments (RI)

• New ETF (TJUL) Offers Complete Downside Protection (FP)

FinTech Trends

• FedNow Instant Payments Service Launches (RS)

• Thanks to AI, Fintech Sees $15B Investment in Q1’23 (MD)

• Opinion: AI to Benefit Advisors, Not Hurt (MS)

• ChatGPT’s Math Skill Drops from 98% to 2% (FT)

Insurance World

• Bain Capital Launches $1.2B Insurance Investment Fund(RS)

• Auto Insurance Satisfaction Sees 20 Year Record Drop (FX)

• Florida's Home Insurance Market Shaken as Firms Exit (UT)

• Client-Owned Insurers Wary of IRS Draft Regulations (TA)

Sales & Marketing

• RIAs Favor Family Offices for Investments (FP)

• 57% of HNWI Pick the First Advisor They Meet (RI)

• Reddit FAs Debate Effective Client Growth Strategies (RD)

• AUM Growth at Top Advisory Firms Hits 0%, Others Down (FP)

Crypto

• Senate Bill to Regulate DeFi Protocols Like Banks (CD)

• US SEC Reviewing 6 Bitcoin ETF Proposals (RT)

• Nasdaq Kills Off Crypto Custody Plan (CB)

• Alameda CEO to Testify in Fraud Case against SBF (NY)

Advisors in the News

• Opinion: Clients Expect More From FAs in 2023 (TA)

• Stifel Advisor Faces $23.5M Claims over Structured Notes (IN)

• Edward Jones Pivots Towards Team-Based Model (WM)

• 6-of-10 Advisors Anticipate 20%+ Client Growth by 2026 (VW)

🔦 Reader Community Spotlight

Doing something in the world worthy of sharing? Hit reply and let us know, we’d love to feature your work! 📢

 🤔Advisors Feeling (Less) Satisfied

A recent study from J.D. Power has surfaced some alarming trends RE: how advisors feel about their jobs:

• 1-of-3 of advisors say they "probably will" be at their current firm in the next one to two years, indicating a risk of a talent drain.

• 28% of independent advisors echoed the same

Advisors feeling stuck or uninspired is a problem - not just for them, but also for the businesses relying on their growth-driven hunger.

Age is a factor too. With an average age of 56, around 20% of advisors are within five years of retirement, adding to the impending talent gap.

J.D. Power reported a significant 17-point drop in investor satisfaction with advisors year-over-year.

This, coupled with a lack of time for clients and tech issues, presents a big negative for the advisory industry.

The Way Forward

• Prioritize Time with Clients. It’s existential. Find ways to streamline administrative tasks (i.e. tech) and allocate more time for client interaction.

• Inspire Commitment: Foster an environment where advisors feel more than just 'stuck'. Cultivate a sense of purpose and growth opportunities.

• Prepare for the Future: With an aging advisory population and potential talent drain, develop a robust hiring strategy to attract and retain young talent.

👌 Everything is Fine

👀 The Best Thing I Saw All Week

Michael, a San Francisco resident, thought he had donated $150 to a neighbor's charity for food relief in Bangladesh.

Imagine his surprise when his bank alerted him to a whopping $15,041 transaction instead.

Frantic, Michael managed to secure a refund from GoFundMe, but the news had already reached the charity.

His phone lit up with grateful messages and videos from Bangladesh, thanking him for his inadvertent generosity with bags of freshly bought food.

Moved by the unintended consequences of his mix-up, Michael upped his intended donation to $1,500 (which still bought a lot of food for the charity). But the story doesn't end there.

After sharing his experience on Reddit, fellow Redditors rallied around the cause, bringing the total fundraise to an unexpected $118,000!

Good job, internet!

Sharing is Caring

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