The Future of Financial Advice

As the financial planning profession celebrates its 50th anniversary, many are wondering, “what comes next?”. The financial planning profession has evolved dramatically over the years, and recent trends involving federal regulations and technological advancements are influencing its next evolution. While “what’s next” remains to be seen, many believe that the future is bright for those who focus on one key element of our work: personal touch.

A recent article by CNBC writer Andrew Osterland shares thoughts from various financial planning practitioners, including those from Dr. Dave Yeske, on the future of financial advice. Quotes from Dr. Yeske are shared below and the entire article, “10 Years On: Despite Dramatic Change, ‘Personal Touch’ Will Dominate Financial Advice Space,” can be found on the CNBC website.

“Where is the future of financial advice headed?”

“I think the prospects for independent RIAs are excellent,” said Yeske, who founded his San Francisco-based company in 1990. “We’re on the right side of the argument.”

Where will the industry be 10 years from now?

It’s a safe bet that the answer is, “In a very different place from today.”

“What robo-advisors don’t do is talk to people about how to achieve their goals and how to adjust their plans when life changes occur.”

“We give investment advice and we manage portfolios but we spend much more time on financial planning,” Yeske said. “A small minority of the population will be happy with automated advice via a web browser, but we help people deal with stress and help them modify their behavior.

“We engage with them as human beings.”

Consolidation and Entrepreneurial-Mindset

“I’m still seeing a lot of new firms being created,” said Yeske, who is also a professor of financial planning at Golden Gate University. “The entrepreneurial spirit is alive and well.”