High net worth millennials need professional advice. Here’s what those in finance need to know

Deloitte currently estimates that by 2020, millennials’ total net worth worldwide will be more than double what it was in 2015. There are several reasons that account for this trend, some of which include rising wages and the improving quality of life in developing countries.  

However, there is another driving force: one of the largest intergenerational transfers of wealth in history.

Baby boomers, the children of the late 40s, 50s and early 60s, were able to buy property at a low-cost relative to income. Their homes, over the ensuing decades, have hugely increased in value; in the UK the average price of a house has doubled since 1996––even after accounting for inflation.

For millennials, this has had two implications. Firstly, many are reliant on their parents if they want to purchase a house. Secondly, they could be set to collectively inherit a huge amount of wealth. Research from EY suggests that those born between 1981 and 1996 in the US will receive $30 trillion from their parents in the next 20 years[1].

Consider the fact that the global economy is valued at $80 trillion, and the scale of this wealth transfer begins to become apparent. For those who already have property, along with high net worth (HNW) and ultra-HNW individuals, investing their new wealth in stocks and shares will be the order of the day, resulting in a changing client base for financial advisers.

Some things will be consistent with what has come before, according to research from Deloitte[2]; 82% of millennials still want to discuss their financial situation face-to-face with an adviser, meaning a wholesale switch to digital communication is unlikely. Furthermore, the ultimate aim for millennial investors will still be healthy and sustainable returns.

What could change is the kind of assets new investors are interested in. The growth of “impact investing”, also known as environmental, social and governance (ESG) investing, is particularly popular among millennials––EY predicts that almost a fifth of investments now under management worldwide are in sustainable financial products[3]. What’s more, two thirds of young people feel “obliged” to change the world for the better, meaning this is likely to inform their future investment decisions[4].

There are many examples of ESG investments providing good returns. The Cordes Foundation, headed by 29-year-old Steph Stephenson, has 100% of its $230 million in impact investments––and achieved an average yearly return of 8%[5].

The rise of millennial HNW individuals has one major implication for financial advisers: they need to be entirely up to speed with ESG financial products and the options available to millennial investors. With the importance of ESG products to the financial sector only likely to increase in markets around the globe, this is an important task that must be prioritised.

Alpa Bhakta is the CEO of Butterfield Mortgages Limited. Part of the Butterfield Group and a subsidiary of The Bank of N.T. Butterfield & Son Limited. Butterfield Mortgages Limited is a London-based prime property mortgage provider with a particular focus on the needs of UK and international HNW individuals.


[1] EY (2017), Sustainable Investing: The millennial investor

[2] Deloitte (2015), Millennials and wealth management

[3] EY (2017), Sustainable Investing: The millennial investor

[4] Deloitte (2015), Millennials and wealth management

[5] Sarah Murray (2019), Rich millennials push to put family wealth into impact investments

Novice rower swaps big data for big waves to row the Atlantic – cheered on by Coldplay

Crown Records Management account manager takes on the world’s most gruelling rowing race

Novice rower swaps big data for big waves to row the Atlantic – cheered on by Coldplay

A records management professional who is swapping big data for big waves is set to row the Atlantic – cheered on by rock band Coldplay.

Claire Allinson of Crown Records Management normally spends her time as an account manager in Enfield, London, but will soon be part of a three-strong team attempting to row from La Gomera in the Canary Islands to Antigua in the gruelling Talisker Whisky Atlantic Challenge.

Claire, who had never rowed in her life before starting training two years ago, was inspired to raise money following the death of her dad from cancer.

And she has since pulled off an incredible coup – by not only persuading her employers to sponsor the boat but also coaxing Coldplay to support her too.

The legendary band, fronted by Exeter-born Chris Martin, have made a big donation to support the team who are raising money for Blood Bikes, a charity dedicated to providing an ‘out of hours’ service delivering essential items to NHS hospitals and hospices.

She said: “It’s a special charity to me because thanks to their fast action dad was around for precious extra time and even able to walk me down the aisle at my wedding.

“We all have very personal reasons for taking up the challenge and we are just ordinary women who want to achieve the extraordinary.

“To get support from Coldplay has been amazing. It all started when I bumped into Chris Martin’s dad Anthony and it has snowballed from there. We are so grateful for their backing.

“It’s not just the donation, they have also been Tweeting out support on social media. I’m a huge fan, so it means a lot.”

Claire has also received backing from Crown Records Management, which has sponsored the team’s Rannoch ocean rowing boat and allowed her to take three months off.

“The journey could take us 65 days, so it’s a long period off work,” she said. “My bosses have been really supportive, and my workmates have rallied round and agreed to do extra work to cover for me as well.”

As a Cross Fit fan, Claire has always had incredible stamina. But her practice routine involved getting up at 4am, training twice a day and then rowing for 36 hours every weekend for 24 months to prepare for the challenge.

She is joined in the boat by Bird Watts from Mevagissey and her 60-year-old mother Mo O’Brien from Penzance (who is severely hearing impaired).

The trio are also supported by a fourth member of the Oarsome Foursome, Linda Whittaker, who will be land crew support for the trip.

Linda completed two years of training but then developed such severe sea sickness that she was sadly forced to pull out.

Once on their way, the team could face 40ft waves and will row in six-hour shifts – two hours with 100 per cent effort, two hours with 50 per cent and then 2 hours of rest. But they must also keep a constant lookout for sharks.

“It’s a bit different to records management, that’s for sure,” said Claire.

You can keep up to date with the adventures of the Oarsome Foursome by visiting https://www.oarsomefoursome.co.uk/ or following @OarsomeFour on Twitter.

A full interview with Claire is available at: https://www.crownworldwide.com/en-us/article/interview-with-claire-allinson–one-of-the-oarsome-foursome

The rowers are also raising money for Exmouth and Lympstone Hospice Centre and Carefreespace, which helps support unpaid carers.

RACE FACTS:

  • The rowers will row between 3,000-3500 miles to reach their destination.
  • Forty teams are taking part and two safety yachts with access to satellite phones will accompany the teams.
  • The Atlantic Ocean is 5.28 miles deep.
  • Waves can reach 40ft high.
  • Together the team will row 1.5m strokes during the race.
  • Each rower needs to drink 10 litres of water and eat 60 calories per kg of bodyweight a day to keep them alive.
  • The rowers will burn 5000 calories a day and lose 12kg in weight during the race.
  • They will also battle blisters, sea sickness, severe exhaustion and even hallucinations.
  • More people have climbed Everest than have completed the Talisker Whisky Atlantic Challenge.

Money remains the biggest conversation taboo

Money is a bigger taboo than sex, religion or politics, according to a survey by one of the world’s largest independent financial advisory organizations.

In the global survey, conducted by deVere Group, 56% of those polled ranked personal finance as the most difficult subject to discuss with family, friends and colleagues.

It came ahead of sex (18%), politics (12%), religion (8%) and health issues (6%) in the poll of more than 700 clients in the UK, Europe, Asia, Africa and Australasia.

Nigel Green, the founder and CEO of deVere Group, comments: “We’re moving towards the holiday period when people, typically, are more likely to get together with loved ones than at any other time in the year.

“But the survey shows that what they are least likely to be discussing is personal finance – including income, taxes, pensions, debt, savings and expenses. 

“Money remains the biggest social taboo.”

He continues: “The taboo of talking money needs to be broken down and normalized.

“We need to recognise and celebrate how money can truly provide individuals and their loved ones with incredible life-enhancing opportunities.  

“In addition, high-net-worth individuals tend to be society’s primary wealth and job creators, major tax contributors and philanthropists.”

He goes on to add: “The de-stigmatization of talking money would also help banish the ‘head in the sand’ attitude to personal finances that prevents many from achieving their financial goals.

“Plus, when money is an awkward topic of conversation, it is easier for people to get an unfair deal. These people typically tend to be women, younger people and ethnic minorities. Silence about money issues can often allow the unfairness to continue unabated.”

Mr Green concludes: “Finances can be complex and are specific to each individual. The answer is to seek independent, expert help from professionals who will be able to signpost people in the right direction.

“We use money every day, it’s an essential part of our lives. Therefore, we need to get more comfortable discussing it. 

“Beginning a conversation about money is the first step, but it should become a normal occurrence, because as our lives change so do our financial needs and wants. Tackling the money conversation taboo is likely to lead to enhanced financial freedom and security.”

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement

Unikrn Offers the Best Job in Gaming: A $50,000 Salary for New Streaming Talent

One gamer will kickstart a lifelong gaming career with one of esports’ oldest teams.

Unikrn Offers the Best Job in Gaming A USD50,000 Salary for New Streaming Talent
Unikrn Offers the Best Job in Gaming A USD50,000 Salary for New Streaming Talent

 November 5, 2019 Unikrn, the world’s longest-operating esports-first betting operator, is seeking an ambitious gamer to help build an audience in 2020. The winning streamer will be given a 6-month partnership with Unikrn and $50,000 to stream full-time and build an audience. Anybody can apply for the unprecedented opportunity at unikrn.com/best-job.

 Streaming is one of Earth’s fastest-growing entertainment sectors, but more than 99% of Twitch streamers are unpartnered and have no way to monetize their passion. Nearly 4,000,000 broadcasters have streamed every month in 2019, with only about 35,000 partnered broadcasters. With over 50,000 average live channels in any given moment, breaking into the industry is harder than ever before.

 “Becoming a professional streamer requires a lot of luck,” said Mike Dalton, VP Marketing for Unikrn, “We believe that for every streamer who builds an audience, there’s three gamers with amazing potential to offer the community something fresh who just never get an opportunity to be noticed.”

 The awarded contract will include a 6-month period to represent Unikrn as an official streamer for Unicorns of Love, one of gaming’s most beloved fan-focused esports franchises, and a $50,000 stipend.

 Unikrn was awarded as the best Esports Bookmaker of the Year for 2019, its first full year of operation with its own wagering licenses, and has options for fans to enjoy gaming both with and without gambling. Its wagering options include Unikrn UMode, the world’s only way to bet on your own success in online matchmaking games.

 This could be the best opportunity in esports for 2019, and it’s open for any esports fan to enter.

 “The Unicorns of Love family is changing today,” said Jos Mallant, UOL’s Owner, “We can’t wait to welcome a fan into our clan to stream or compete in 2020.”

 Streamers may enter the search until Nov 30, 2019.

ABOUT UNIKRN

Established in 2014, Unikrn is one of the world’s leading esports companies, building extensive crossroads through betting, content and gaming. Unikrn began operations with its fully-owned IOM licenses in November, 2018 and was awarded EGM Esports Bookmaker of the Year 2019. Unikrn has been a leading endemic bookmaker in esports and video games for years and has patent-pending technologies and completely unique gaming experiences.

Those unique experiences include Virtual CS:GO & SFV, skill-based betting on online matchmaking, streamer better, esports and sports bookmaking, daily gaming giveaways and an online casino, each available as regulator approved.