2016 is slowly coming to an end and 2017 is just around the corner! Events occur everyday and changes are happening every minute. As we reflect on 2016, there will be some changes moving into 2017 that may have an impact on financial advisors.
With Donald Trump as the newly elected president, some changes that will be implemented once he moves into the White House.
The tax bracket will be decreased from seven to three, lowering the tax rate for wealthy taxpayers.
For families who incur more costs and go through financial struggles due to raising larger families, there will now be a guaranteed paid leave for families with four kids or more. This allows for those families to deduct the cost of raising the kids, giving them a tax break.
Savings accounts will also be instituted to pay for dependent care. If taxpayers contribute $2000 a year into the savings account, the balance could be rolled over and used for education expenses when the children turns 18.
Baby Boomers are retiring and Millennials are emerging. As the older generation exits, the clients are getting younger and younger. There are some characteristics that differ from generation to generation.
Baby Boomers experienced many hardships, such as WWII, Great Depression, Korean War and more. Their lifestyle views tend to be more traditional and are slower at adapting to emerging technologies.
The Millennials were raised in the time as technology was advancing. They are very tech savvy and learn quickly to new things. They tend to be more risk-taking and are always looking for new opportunities. Millennials love to stay connected through social media and tend to focus on short-term goals.
Less Geographical Limitations
The world wide web is growing bigger and bigger by the second. Long ago, there were limited channels and methods of reaching a target audience. Now with the digital media, it’s easier to have farther reach and greater exposure, but you lose the impact that in-person experiences and personal connections can have.
You can only travel so far by foot, but with digital media, you can have your presence on the opposite side of the globe in a matter of seconds.
With all these potential changes in 2017, it is best to be aware and be prepared of the impact this could have on you, as a financial advisor. As genius as you may be, no one can be certain of what’s going to happen tomorrow and how the changes can have an impact on you.