Annual report explores five societal changes and offers corresponding wealth planning strategies
The Northern Trust Institute today announced the release of its annual Wealth Planning Outlook: Wealth, Redefined. The Outlook offers forward-looking perspectives on wealth planning for business owners, executives, multigenerational families and other wealth owners. The 2022 report examines how shifting values, primarily driven by the global pandemic, have given investors the resolve to pursue what matters most as we enter a new phase of recovery and transformation.
“This year’s Outlook explores significant developments fueled by the COVID-19 crisis: a heightened awareness of purpose — whether fulfilling one’s personal potential or promoting one’s values through more deliberate investing and giving; a more profound sense of our own and our loved ones’ human fragility; and the startling embrace of technology by millions,” said Northern Trust Chief Fiduciary Officer Pamela Lucina. “Armed with a greater understanding of how these changes impact wealth planning, families can take action to achieve what is most meaningful to them as transitions occur in their families and finances.”
Wealth, Redefined examines how five societal changes are evolving and offers corresponding wealth planning strategies, including:
Reinventing Retirement – Shifting perspectives on “retirement” are leading many to rethink this stage of life, with more people finding fulfillment in a second chapter or direct investment venture.
Planning for Tax Uncertainty – Though it faces an uncertain future in the Senate, the Build Back Better Act proposes several significant changes to the tax code. The underlying uncertainty stresses the need to build flexible plans that can adapt to changing circumstances.
Creating Value from Values – The rapid evolution of ESG investing and philanthropic giving vehicles is driving increased interest among investors in aligning their portfolios with their values. But there continues to be challenges with doing so effectively and measuring the impact of these investments.
Preparing for Disability – Mental illness, already on the rise prior to the pandemic, has increased dramatically in the last two years. The uncertainty associated with mental health and disability can have very real implications for financial planning. Preparing for the possibility ensures estate plans fully contemplate the complexity of these conditions.
- Protecting Digital Assets – The proliferation of digital assets and blockchain technology presents several estate planning challenges that demand attention to ensure executors and loved ones have access to the information they need, as well as the assets themselves.
“As recent history starkly illustrates, no one knows, with precision, what the year ahead will bring. Yet through careful analysis of the data, trends and historical precedent, certain tangible themes emerge,” said Northern Trust Wealth Management President Steven L. Fradkin. “While we cannot control many of the events that will shape our lives in the coming years, we can prepare and stand ready to recognize the risks and opportunities that inevitably accompany great change.”
The full Northern Trust Institute 2022 Wealth Planning Outlook is available at northerntrust.com/wealthoutlook.
The Northern Trust Institute is dedicated to helping clients make confident and optimal decisions for their wealth through advice that is grounded in real world outcomes and specialized expertise. To achieve this goal, more than 175 experts collaborate to analyze behavioral patterns, identify the most effective client strategies and curate advice around important life moments.
Northern Trust Wealth Management offers holistic wealth management services for affluent individuals and families, family offices, foundations and endowments, and privately held businesses. It is recognized for its innovative technology, service excellence and depth of expertise and ranks among the top 10 U.S. wealth managers, with $372.9 billion in assets under management as of September 30, 2021. The Northern Trust Company is an Equal Housing Lender. Member FDIC.
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2021, Northern Trust had assets under custody/administration of US$15.8 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.
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