Big Changes Are Coming

dan solinAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Dan’s new book for millennials, Wealthier: The Investing Field Guide for Millennials, is now available on Amazon.

My predictive track record is sketchy.

I was slow to embrace comprehensive wealth management and to recognize that more than offering Dimensional Funds would be needed to justify fees charged by advisors.

I thought robo-advisors would significantly impact the traditional advisory business (although almost $1.5 trillion in invested assets isn’t bad).

I didn’t predict there would come a time when Dimensional would offer ETFs, permitting the general public to buy its funds and circumvent its impressive network of advisors.

I didn’t predict the massive consolidation of advisory firms. When it happened, I was skeptical that clients would want to be served by firms owned by private equity.

And I didn’t predict that the AUM model would last so long. Once clients realized they were paying their advisors as much as 25 percent of their profits, I thought there would be open rebellion. That hasn’t happened.

Nevertheless, into the breach I go with yet another prediction. This one is based on my familiarity with artificial intelligence, grounded on my early adoption, working with five to seven AI programs daily and research I’ve done to try to discern how AI will impact financial services.