How wealth management has changed since the financial crisis

Jeff Hoffmann
Posted by Jeff Hoffmann
Private Client Services

More than five years after the financial crisis, investors remain cautious. Even as the economic recovery has gained steam and long-term economic forecasts remain positive, investors are continuing to take conservative positions in their portfolio while seeking market opportunities to achieve gains.

Closeup on young professional woman with concerned & pensive look as she stares off to the side.Simply put: there is an emphasis on preserving wealth rather than growing wealth — and we believe this is a fundamental shift in investment strategy that will remain well into the future.

In a recent interview John Bahnken, who heads our Wealth Management Group, observed, “Investment expectations have come in quite a bit from where they were, so people are much more willing to trade off risk and returns with volatility in the market.”

Within wealth management, the people we meet are increasingly more interested in talking about how shifting away from a focus on just individual investment holdings and specific banking products in favor of comprehensive financial plans focused on wealth goals with defined time horizons. This has been true across all age groups — older investors who historically move toward conservative positions, as well as younger investors who have become more risk-averse.

According to a Gallup poll, just 27 percent of 18- to 29-year-olds — a generation that grew up during the recession — reported owning shares in individual companies or as part of a fund in April 2013, down from 33 percent in April 2008.

For more on these developments, watch the interview with John Bahnken, talking with World Finance magazine:

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