A Life-or-Death Moment for Financial Advisors

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In terms of their future success, financial advisors have reached a “life or death” moment as they think about how they will operate their business over the next 5-15 years. Depending upon the decisions advisors make in the near term, their practices will either be setup for monumental growth or inevitable decline.

I know this sounds dramatic but let me make my case.

One-hundred years ago, the Roaring Twenties era was a period of economic prosperity, rapid social change, the emergence of new technologies, and a stock market that had reached never-before-seen highs. Sound familiar? The Roaring Twenties didn’t end well, of course, and it took an event as dramatic as World War II to pull the U.S. and the world out of depression.

Today’s world is in some ways quite different and in other ways eerily similar. In the 1920s, economic growth was generated by savings and investment – capitalism. In the 2020s, economic growth is generated by an entirely different system based upon credit. The economist Richard Duncan calls today’s economy system creditism. This is a monumental shift that I will further explore in this article.

Whether or not you agree that we are paralleling the Roaring Twenties, thoughtful financial advisors must ask themselves three important questions:

1. Are you confident about your prospects for continuing professional success over the next decade?

2. Are you intending to ”follow the money” by making income planning a focal point of your business strategy?

3. Are you male?