New changes to financial planning

Families in Iowa may benefit from understanding more about how traditional financial planning is changing in the modern era. The fact is, there really is no average American family with typical finances. According to UBS Wealth Management, approximately 34 percent of all high-net investors are comprised of same-sex families, blended families and multigenerational families. Traditional families, described as heterosexual couples with children, account for about 35 percent of the high-net investors.

The study involved more than 2,700 high-net investors and also showed that the demographic reduces in size with each generation. Approximately 25 percent of the high-net investors are millennials, 37 percent are from the baby boomer generation and 46 percent are from the World War II era. However, about 70 percent of the respondents claimed that the financial advice they received was formulated for traditional families.

Strategic officers say it’s time for the industry to begin dealing with the complexities presented by many modern-day families. The dynamics of the American family now change dramatically in a short amount of time, so the opportunity for the industry to respond is here. Blended families constitute about 14 percent of the high-net worth demographic and can present a myriad of challenges to financial planners only accustomed to assisting traditional families. These types of families often live with more complications, financial burdens and emotional stress than traditional American families.

Anyone with suspicions of financial fraud may wish to confide in a lawyer before making any final decisions. Legal counsel may be able to review the financials and help determine whether or not the investment or proposal is a viable option for improving profitability in the future. Lawyers may also be prepared to review new contracts for terms or provisions that could be problematic for the future.