Matt Ong, the CEO of B2B Alternative Asset Solutions provider Ctrl Alt, has a wealth of experience from his time at top financial institutions like Morgan Stanley and Credit Suisse. His career has shown him the complexities within traditional investment avenues, leading him to create Ctrl Alt with a mission to bring about change in the industry and challenge the traditional investment landscape. With the impending intergenerational wealth transfer expected to shape economies and societies over the next 20 years, Ong believes it’s crucial to offer products that cater to the needs of younger generations.
In the United States, $84 trillion is anticipated to be passed down from older Americans to millennial and Gen X heirs by 2045, with $16 trillion of that set to be transferred within the next decade. Similarly, in the U.K., £5.5 trillion is expected to be passed down over the next 30 years. This shift in wealth presents unique challenges and opportunities for wealth managers and asset platforms, as they must adapt to the changing investment philosophies and priorities of younger generations.
As younger generations become more aligned with environmental, social, and governance (ESG) principles, wealth managers need to adjust their strategies to cater to these new expectations. Research shows that while 80% of financial advisors view the coming intergenerational wealth transfer as a significant business opportunity, only 9% are actively prioritizing family conversations to manage this transfer effectively. The next generation prefers to engage financial services only when needed and may switch from their predecessors’ advisors, highlighting the need for wealth managers to understand their preferences.
Ctrl Alt sees this generational shift as an opportunity to engage with the next generation of clients through investments in diverse digital assets. Millennials and Gen Z are more inclined to support sustainable and socially responsible investments, making it essential for wealth managers to offer these options. With young investors showing a preference for alternative investments like private equity and commodities, wealth managers must adapt their service offerings and embrace digital platforms for wealth management services. The adoption of technology and alternative assets will be crucial in appealing to a generation that values transparency, immediacy, and ease of access in their financial activities.
In conclusion, the intergenerational wealth transfer presents challenges and opportunities for wealth managers, who must actively respond to the preferences of the next generation. By embracing sustainability, social responsibility, and technological innovation, asset managers and family offices can secure their position in a future where wealth management is increasingly influenced by these factors. It is important to consult with a licensed professional for advice concerning specific financial situations. The Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning, and wealth management firms.
