Technology
hasn’t just improved over time; it’s also matured its users. Today, the average
child gets his or her first cellphone at age 10.1 In past
generations, 10 was about the age when parents finally let their kids use those
creepy crawly bug makers that required a heating device.
These
days, one of the biggest growth trends in IT is wearable technology, such as medical
and fitness devices. As much of the nation continues on its prolonged health
kick, companies have adapted to consumers’ needs by rolling out wearable
technology. The U.S. has accounted for the largest share of these medical and
fitness devices that encourage improved health and activity.2
New
products are constantly rolled out with a variety of everyday applications,
such as cloud delivery services, digital entertainment/gaming, location-based
services, increased digital security and big data analytics.3
The
bigger and better the breakthrough, the more expensive the product sells for in
stores. Just as you would do your research and shop around before buying a
fitness wristband or new TV, we believe it’s important to apply the same level of scrutiny to
your financial strategy. If we can help you create a retirement income strategy
utilizing both investment and insurance products, please give us a call.
Technology
developed specifically for the financial industry has fostered a new generation
of smaller, more nimble and virtual companies. For the first time in history,
smaller banks now have the opportunity to compete with large ones. Taking out
loans and withdrawing and depositing money has become a do-it-yourself industry
thanks to online services.4
In
terms of investments in the technology industry, there’s a growing trend for
start-ups to remain private, and they are increasingly able to generate
investor money in doing so. In 2015, 146 private tech companies achieved
valuations upward of $1 billion in private markets -- which is twice as many as
the year before. By contrast, some technology companies that underwent initial
public offerings (IPOs) over the past four years have performed poorly; since
2011 over 40 percent are flat or below their final private-market valuations.5
Please remember that investing involves risk, including the
potential loss of principal. No investment strategy can guarantee a profit or
protect against loss in periods of declining values.
Clearly,
technology is an industry that will continue to grow and adapt. Not only is it
innovating for businesses and consumers -- young and old -- but even in the way
it funds and sustains business operations.
What’s
interesting is that the creepy crawler machine of yesteryear is coming back on
the market. Mattel is reintroducing a 3-D printer version this fall that will retail
for $299.6 The high-tech twist on this classic toy is a prime
example of how technology will affect younger generations moving forward, while
the price tag puts the potential cost of a 10-year-old’s cellphone in
perspective.
1 Influence Central. May 20, 2016.
“Kids & Tech: The Evolution of Today’s Digital Natives.” http://influence-central.com/kids-tech-the-evolution-of-todays-digital-natives.
Accessed May 20, 2016.
2 FOX8live. May 17, 2016. “Global
Wearable Technology Industry 2016 Market Analysis, Size, Share, Growth,
Research, Forecast, Trends, Opportunities and Challenges: QyResearchReports.” http://www.fox8live.com/story/31994070/global-wearable-technology-industry-2016-market-analysis-size-share-growth-research-forecast-trends-opportunities-and-challenges-qyresearchreports#.VzwC_w5_Hkc.twitters.
Accessed May 20, 2016.
3 Steve Andriole. Forbes. Dec. 15,
2015. “Technology M&A in 2016: Macro and Enabling Trends Predictors.” http://www.forbes.com/sites/steveandriole/2015/12/21/technology-ma-in-2016-macro-and-enabling-trends-predictors/#7def80b95e11.
Accessed May 20, 2016.
4 Business Insider. April 14,
2016. “The fintech industry explained: The trends disrupting the world of
financial technology.” http://www.businessinsider.com/fintech-ecosystem-financial-technology-report-and-data-2016-2.
Accessed May 31. 2016.
5 Begum Erdogan, Rishi Kant, Allen
Miller and Kara Sprague. McKinsey&Company. May 2016. “Grow fast or die
slow: Why unicorns are staying private.” http://www.mckinsey.com/industries/high-tech/our-insights/grow-fast-or-die-slow-why-unicorns-are-staying-private.
Accessed May 20, 2016.
6 Edward C. Baig. USA Today. Feb.
13, 2016. “Mattel resurrects ThingMaker as a 3D printer.” http://www.usatoday.com/story/tech/columnist/baig/2016/02/12/mattel-resurrects-thingmaker-3d-printer/80236104/.
Accessed May 20, 2016.
We are an independent firm
helping individuals create retirement strategies using a variety of insurance
and investment products to custom suit their needs and objectives. This
material is intended to provide general information to help you understand
basic financial planning strategies and should not be construed as financial
advice. All investments are subject to risk including the complete loss of
principal.
The information contained in
this material is believed to be reliable, but accuracy and completeness cannot
be guaranteed. If you are unable to access any of the news articles and sources
through the links provided in this text, please contact us to request a copy of
the desired reference.
Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.
Content prepared by Kara Stefan
Communications
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