WTOP Interview: Top Financial Planning Trends for 2019


Interview Transcript:

Shawn Anderson: It’s 5:11. It is that time of year when we look to 2019 and make some predictions about the year ahead. What are the top financial planning trends that could affect your money next year?

Hillary Howard: Joining us to talk about it, Dawn Doebler, co-founder of Her Wealth and Senior Wealth Advisor at The Colony Group in Bethesda. Hello Dawn!

Dawn Doebler: Hi Hilary!

Hillary: So, what trends do you see that will affect personal finances in 2019?

Dawn: Well, this week’s article identifies five trends I’m observing and work with clients in various segments this year. We’ve spoken about trend number one, which is increased longevity. We’ve used the work of the M.I.T. Age Lab to articulate planning ideas, for addressing the four major stages of what they predict as a retirement lasting an average of 8,000 days. And according to the Social Security Administration, official life expectancy for a man aged 65, today is 84.3 and for a woman is 86.7.

In 2018, we’re more frequently discussing how to handle financial needs for the elderly and more often than ever before, I’m hearing people talk about men living into their 90s. And also, telling is a recent white paper, suggesting for people born in 2007, the global average life expectancy is to age 103. A second trend is responsive estate planning tools for second marriages, and suffice it to say that the financial implications of divorce and especially grey divorce can be significant. And also, as women’s economic power increases, the job of protecting their assets becomes more complicated.

There are legal and estate planning techniques designed for this purpose, plus life insurance and financial tools. And the main thing here is to have those difficult conversations about money early in your relationship. And the third trend is increased workforce diversity. One result of people living longer, is they’re working longer and often working longer than they expected. And couples are having to navigate decisions about when they retire and how to juggle tradeoffs of retiring together, versus staggering their retirement.

Shawn: It seems that technology keeps seeming to infiltrate the way we manage money. Any trends there that you’re seeing?

Dawn: Well, that’s right Shawn. There’s no doubt, the trend in Fin Tech continues and this is great news because it makes managing our finances easier. We can use technology to keep track of our account values and volatile markets. And even better, you can use tech to support the more mundane financial tasks, like tracking your spending. And as an advocate for women to be more engaged, online portals and electronic vaults are a great way to ensure couples have equal access to financial information. Equal access tends to increase engagement and discussions and planning for the future.

Hillary: Alrighty. Thank you, Dawn. That’s Dawn Doebler with The Colony Group in Bethesda. You can read more at WTOP.com, search Her Wealth.