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What Did We Learn about Investments in 2023?

Reflecting on the tumultuous investment landscape of 2023, Buckingham Strategic Partners distilled invaluable insights into their “Top 10 Investment Lessons of 2023.” ...

The post What Did We Learn about Investments in 2023? first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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What Does the IRS’s recruiting efforts mean for taxpayers?

The IRS’s recent intensification in recruitment to address wealthy taxpayers is raising eyebrows among high-net-worth ...

The post What Does the IRS’s recruiting efforts mean for taxpayers? first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim

Estate planning for business owners, particularly those known for impulsive decision-making, requires a nuanced approach. ...

The post Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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Where’s The Money? Global and North American Wealth Decreases

In the milieu of 2022, North American wealth underwent a significant contraction, as it faced an 8% decrement. Amidst this scenario, high net worth individuals (HNWIs), whose assets are valued at least $1 million excluding primary residence, found their opulence dwindling. This write-up delves into the complex tapestry of economic elements that played roles in this erosion of affluence, and the broader ramifications that ensued.

Background:

The year 2022 was punctuated by multiple economic perturbations that played havoc on the financial domain. A plethora of factors ranging from geopolitical strife to surging inflation rates and tightening monetary policies converged, catalyzing a contraction in the wealth of North America.

Decline in Assets Under Management (AUM):

One metric of wealth, Assets Under Management (AUM), reflects the total market value of investments managed on behalf of individuals and institutions. North American AUM took a substantial hit, witnessing an 8% decrease. HNWIs across the region, who often represent a significant portion of AUM, were impacted detrimentally.

Global Context:

In contrast, global wealth, which aggregates the wealth of all regions, underwent a more modest decline of 2%. Asia-Pacific, with its burgeoning economies, saw a relatively stable trajectory for wealth, partially offsetting North America’s precipitous decline. Europe, with its own set of economic challenges, also registered a decrease, albeit to a lesser extent.

The Confluence of Factors:

There was an amalgamation of factors that contributed to the downfall. Macroeconomic indicators such as a rise in interest rates, escalated inflation, and geopolitical tensions contributed to a less favorable investment environment. The tightening monetary policies spearheaded by the Federal Reserve in an attempt to curtail inflation had an inadvertent impact on the liquidity and valuation of assets, thereby affecting AUM.

Long-Term Implications:

The shrinkage in wealth can have multifarious implications. A contraction in AUM can engender a decrease in investment in markets, which, in turn, can exacerbate economic downturns. For HNWIs, this may prompt re-evaluation and diversification of investment portfolios to hedge against future uncertainties.

In times of economic turbulence, astute financial planning is of paramount importance. Shah Total Planning possesses the acumen and expertise to guide you through the convoluted landscape of wealth management. Their adept professionals can assist you in formulating robust strategies to safeguard and augment your assets. Should you need assistance or guidance in navigating these tumultuous economic waters, do not hesitate to reach out to Shah Total Planning.

Conclusion:

The precipitous decline in North American wealth in 2022 was a corollary of a confluence of complex economic variables. While the immediate implications are palpable, the long-term consequences on investment behaviors and economic stability remain to be seen. It is incumbent upon individuals, particularly high net worth individuals, to adopt a strategic approach to wealth management in such trying times.

Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
What Did We Learn about Investments in 2023?

Reflecting on the tumultuous investment landscape of 2023, Buckingham Strategic Partners distilled invaluable insights into their “Top 10 Investment Lessons of 2023.” ...

The post What Did We Learn about Investments in 2023? first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
What Does the IRS’s recruiting efforts mean for taxpayers?

The IRS’s recent intensification in recruitment to address wealthy taxpayers is raising eyebrows among high-net-worth ...

The post What Does the IRS’s recruiting efforts mean for taxpayers? first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim

Estate planning for business owners, particularly those known for impulsive decision-making, requires a nuanced approach. ...

The post Entrepreneur Estate Plans For Those Who Choose To 1) Ready, 2) Fire, THEN 3) Aim first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more