IMPACT ADVISOR | Megatrends in Wealth Management; Modern ESG Investing

Modern Investing

Sustainable / Social Impact

71% of individual investors are interested in sustainable investing; 84% of Millennial investors.

Institute for Sustainable Investing

$30 Trillion Wealth Transfer

Women & younger investors are particularly underserved by legacy advisors today.

Largest intergenerational wealth transfer in history
1 in 6 Millennials now have $100K+ in savings, 2x since 2015

Technology & Distribution

Most Millennial & Gen X investors prefer hybrid high-tech + high-touch solutions: an app experience + professional human guidance.

StreetWise: Q3 2017

Tax Smart

Investors are becoming aware of the hidden costs/tax-erosion from traditional offerings that ignore tax impacts. Tax alpha-seeking strategies can add +1-2% annually.

2018 tax reform & marginal tax calculator

Unconflicted; Transparent

"Hey Siri, what are some hidden costs of investing"

It's never been easier for clients to understand the industry's incentive conflicts. And this administration's SEC may accelerate transparency.

Least-trusted industry: Financial Services

Fee & Expense Compression

Investors seek lower cost passive/index and algorithmic investment products to eliminate unnecessary fee & expense layers: the middlemen.

High-Performance Wealth Management

Every Megatrend is a tailwind for Financial Advisors with the client-centric product offering powered by Impact Labs℠

link: product offering

Explosive Sustainable/Social Impact Investing Growth

$9 trillion in SRI/ESG assets under management in the U.S.,
more than doubling from 2012 to 2016.

1/5th of professionally managed investments

link: SRI/ESG Asset Growth

THE OPPORTUNITY:
71% of individual investors are interested in sustainable investing
and 84% of Millennial investors

None of these numbers reflect the post-election Trump bump:
Investors are stepping up to support companies taking a stand and/or making a difference on social/impact causes.

SRI/ESG:
Social/Responsible/Impact (SRI) investing criteria
and/or the application of
Environment/Social/Governance (ESG) factors.

Crypto Assets

The Financial Services industry has demonstrated this time again -- without regard to the underlying quality of the investment product:

"...with a good sales & marketing team just about anything can and will be sold; especially a sexy new asset class."

"It’s anyone’s guess when and at what level this bubble in bitcoin will burst."

Our full article on Medium:
#1 Reason 2018 Will be the Year of the Crypto Asset Class (and not 2017)
Nov. 28, 2017
~$9.5K/BTC

Before 2018, bitcoin "investing" or speculation required transferring money into risky & unfamiliar places or overpriced investment products. Meanwhile, bitcoin "marketing" or publicizing has generally been limited to word-of-mouth & the media.

New bitcoin-related investment products will be released, opening up crypto asset-investing to traditional investors. These new distribution channels will increase demand, if only due to the addition of professional marketing of the crypto "asset class".

This is not to say there is any basis or justification to assume that crypto, as an asset class, should be expected to generate positive returns over time.

Bubble?

Beware Of The Bitcoin Bubble: Investment And Financial Advisors Warn

“But it is anybody’s guess what inning. It looks to me like we’re well ahead of the 7th-inning stretch...”
said Jason R. Escamilla, CEO of ImpactAdvisor, an investment advisory firm in San Francisco.

“...The price level and energy usage are unsustainable. There is far better technology emerging to meet the same needs.”

Forbes, Nov. 4, 2017
~$7K/BTC

What is Crypto?

WE RECOMMEND THESE THREE ARTICLES TO QUICKLY GET UP TO SPEED:

"Crypto assets are a new asset class that enable decentralized applications."

"A decentralized application is a way to create a service that no single entity operates."

- Adam Ludwin
link: A Letter to Jamie Dimon

"The 2008 financial crisis caused a lot of people to lose trust in banks as trusted third parties."

"Bitcoin made digital transactions possible without a “trusted intermediary.”"

- CB Insights
link: What is Blockchain Technology

"99% of Cryptocurrencies are total scams. And, yes, Cryptocurrencies are in a bubble."

"BUT...the opportunity is NEVER going away and generational wealth will be made. So you have to know the basics, why this opportunity even exists and what to watch out for."

- James Altucher
link: The ABCs of Bitcoin and Everything You Needs to know about "Forks"

Risks?

Should I Invest in Bitcoin and Blockchain Technology?

"We view crypto-investing as driven by the greater fool theory of investing or speculation, and we genuinely mean that in a bullish way for now..."
says Jason R. Escamilla, CEO of ImpactAdvisor, a wealth management firm in San Francisco

U.S. News, Nov. 13, 2017
~$6K/BTC