Against a backdrop of prolonged macroeconomic challenges, investors’ expectations have been put to the test by issues not seen in decades. In Northern Trust’s 2023 Wealth Planning Outlook, experts from the bank explore how individuals and families continue to harness the resilience recent years have demanded to approach the year ahead.
Four distinct perspectives illuminate the trend in this year’s report: families, women, business owners and philanthropists.
Different perspectives among family members offer opportunities for navigating the current environment together. The democratization of investing has provided younger investors more access early in their lives and careers, leaving many to face their first downturn with more market exposure than previous generations. Working across generations allows family members to share wisdom and put time-tested ideas into practice alongside novel ones.
Women are changing the face of leadership and using the opportunity to own their financial future.
In 2022, the proportion of women in senior management roles grew to 32%, the highest number ever recorded. Taking control of your finances in the current environment can be challenging – especially if you are managing wealth for the first time. There are steps available to prepare yourself and your family.
Despite economic uncertainty, owners are preparing their businesses for an uptick in deal activity.
While venture capital funding in 2022 slowed relative to the year before, it has already surpassed the previous five years. Position yourself and your business to benefit regardless of whether you choose to sell your business or pass it to the next generation.
Donors continue to explore new ways to make an impact. For example, of the 61% of foundations that are providing more unrestricted support post-pandemic, 65% will continue, according to the Center for Effective Philanthropy’s report, Foundations Respond to Crisis: Lasting Change?
Philanthropic donors are increasingly looking at nontraditional ways to achieve their philanthropic goals and help charitable organizations become more sustainable. Understand your options and use this opportunity to spark valuable conversations with family.
Request your copy of the Wealth Planning Outlook, which distills these trends into actionable advice.