The real estate market has endured a challenging two-year downturn, but conditions now present a compelling investment opportunity. Property values appear to have stabilized, setting the stage for a potential market recovery, with history suggesting that early investors stand to benefit the most. 

Strong fundamentals across various property types reinforce real estate’s long-term role as an inflation hedge and a steady income source. As interest rates decline, traditional fixed-income yields may compress, making private real estate an attractive alternative. 

Compared to stocks and corporate credit, real estate valuations remain appealing, particularly given its potential for portfolio diversification. The sector’s dislocation in capital structures has created opportunities to acquire high-quality assets at adjusted prices. 

Finsm: Ultimately, blending real estate equity and credit within a portfolio can offer both stability and upside potential in the evolving market landscape.

The financial industry is evolving rapidly, with new technologies helping advisors streamline operations and enhance client relationships. Investing in the right tools can give firms a competitive edge while also improving talent retention, as many advisors seek better technology. 

Essential tools include CRM software, which centralizes client interactions, financial planning software for scenario modeling, and risk analysis tools to assess investment strategies. Fi360 offers data and technology specific to advisors that can improve their efficiency. 

Additionally, scheduling software simplifies appointment management by automating bookings and reminders. Selecting the best options—such as Salesforce for CRM, Fi360 for financial planning, or Calendly for scheduling—can optimize efficiency.

 Finsum: With Fi360 advisors have the right technology and can focus more on delivering personalized financial strategies and strengthening client trust.

Managed accounts are set for a major transformation as current models often benefit providers more than participants due to high fees. Employers must evaluate how providers personalize portfolios and whether participants actively engage with these features. 

While managed accounts generally offer strong investment management, fee structures can erode some of their value, requiring significant equity exposure increases to match target date fund returns. Personalized portfolio returns tend to fall within a narrow 5% to 7% range, with minor impacts from strategic asset allocation shifts. 

A subscription-based model could better align incentives, offering lower-cost options for less engaged participants while providing premium services for those seeking greater customization. Inconsistencies in provider methodologies, driven by factors like risk tolerance and retirement readiness, highlight the need for greater transparency. 

Finsum: This is an interesting strategy, but if done properly managed accounts are a great vehicle for retirement and defined contribution. 

Target-date funds simplify retirement investing by automatically adjusting risk over time, making them ideal for those who prefer a hands-off approach. These funds, which held $3.5 trillion by the end of 2023, are often the default option in 401(k) plans, ensuring broad diversification and gradual risk reduction. 

However, high fees can significantly erode long-term returns, making it crucial for investors to choose low-cost options. While effective for wealth accumulation, target-date funds may not serve retirees as well since they lack built-in mechanisms for generating steady income. 

Some newer funds address this gap by incorporating annuities to provide predictable post-retirement income. It’s also important to note how they fit with the existing portfolio to create a coherent investment strategy. 

Finsum: As retirement needs vary, understanding fund structures and choosing the right strategy can greatly impact financial security.

As the wealth landscape evolves, the number of high-net-worth individuals is on the rise. And that means financial advisors who can cater to their complex needs will be in high demand. Are you prepared to meet the challenge?

Our infographic provides key strategies to help you become the go-to advisor for these discerning clients, such as:

• Leveraging professional designations
• Offering diverse financial strategies
• Using technology as a service tool

Are you ready to seize this growth opportunity? Transform your approach to serving high-net-worth clients today.

Download the infographic here.

Commonwealth Financial Network®, Member FINRA/SIPC.