Naples Standard

Northern Trust Corporation issued the following announcement on Dec. 21

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Original source can be found here.