Woke



There is a risk when a 56 year old writer attempts to use Digital Native terms.  My Millennial children laugh at me when I overuse LOL and FOMO.  Laugh if you must but my feeling after listening to a recent call by Morgan Creek Capital Management on Crypto Capitalism was I’m Woke.  This blog will summarize other groups that should be Woke.


Banks

Banks hold most of our Fiat currency.  We pay them a significant amount of fees for this mundane service.  Why do we continue to pay these exorbitant rents? Is it inertia or are we just not aware of better alternatives?  My opinion is that we aren’t aware of a better alternative.  Banks are acquiring brokerage firms for their deposits that continue to grow after the advent of the CMA.  Deposits are king, but how much rent should we pay for this service? Banks need to wake up.

Wealth Management

Independent wealth management firms have thrived over the last five years by eliminating the banks’ rent on client accounts.  Crypo currency’s inclusion in a portfolio can reduce fees and provide diversification benefits.  A true fiduciary should examine these claims to see it allows them to implement strategies that are in their clients’ best interest. Independent wealth managers are starting to wake up.


Digital Natives

The great wealth transfer is coming, the great wealth transfer is coming.  The wealth that the Baby Boomer generation has accumulated will eventually pass to their children in the millennial generation.  Established firms are crafting strategies to retain this money, but their strategies don’t work for the next generation.  The millennials are digital natives who don’t trust their parent’s financial institutions.  They trust digital solutions that they can monitor in real-time and they don’t believe the fees that established firms charge are worth it.  This is a huge opportunity for new firms to adopt Crypto.  Their parents didn’t like their parents’ financial advisors either.

Laugh at me, I can take it.  I’m Woke and not afraid of taking a few early adopter arrows.

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