The future of investing is within the hands of millennials and how they perceive the emerging world. One of the financial differences that millennials have in regard to their predecessors—the baby boomers—is a lack of trust. Millennials aren’t likely to believe that their financial future can be put into the hands of fiduciaries. What millennials rely on as their source of hesitance is their parents’ financial failures.
Through calamities like 2008’s Great Recession, millennials have witnessed the flaws within homeownership, the weaknesses of pensions, and the struggles had when interest rates fall. Analysts in the financial world believe that the hardships millennials have faced will shift how investing is done in the near future. 2020, as it stands, is already set for a financial disaster to unfold due to COVID-19. Here are some points that will define the future of investing:
Wireless Orders
The loud, boisterous commotion of the trading floor of Wall Street is becoming a scene of the past. Even the trader Paul Mampilly acknowledges the end of paper transactions, which makes way for electronic ones. As people can make trades from home, more people are likely to invest in whole.
Transparent Advisors
2019 opened its fiscal year up with a long list of government regulations that gave public investors greater safety within the financial markets. Transparency is a trend that future investors are likely to advocate for as more decisions are placed within their own hands.
Self-Directed Holdings
We might soon come to see the financial professionals that once gave investment advice become people that only complete investment transactions. The less influence that financial professionals have over their clients, the more decisions that individuals will have regarding their own money.
Independence
The financial independence emerging within the lives of future investors requires them to have financial literacy. We can expect financial education to spread and for people outside of the financial industry to be savvier about the terms and jargon used by fiduciaries.
Finance, in the same manner as science and technology, is set to grow at a rapid pace in 2020. With a growing population having tools like blockchain, people must empower their finances via the internet. We expect to find more financial services offered through wireless technology and more people eager to receive them.