Too many advisors are still leaving. It starts at the top.
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So far my FA has yet to beat returns I'm getting with Wealthfront, yet wants to charge 5x the fees. College planning... they used the same calculator you can get online from our state 529 plan. Easy choice.
They need to start doing retention bonuses for the FAs to stop some of the tide as most FAs will jump to take the big check 10 years before retirement. Average FA age is 60....
I’ve seen great leadership at the top. This isn’t it.
Another LOB that needed to transform their model and ultimately drive more shareholder value. Great to see leaders with the courage to make the necessary changes. Transformation is not easy and some employees will opt out, but that’s ok …..
The WIM office I’m familiar with is down to one person. How could change not happen?
OP We’ve seen you out here before making the same claims. If you are “in the know”, how about some details to help prove you are of some substance? They can’t trace it back to you.
Post ID: @xwc+1fmhfT0a
A very dangerous view from a limited mind. That’s like price shopping for your eye surgeon and going with the cheapest. You get what you pay for. I work hard for my money and I am not so co--y to imagine that I can manage it as an experienced professional would any more than I can build my own house from an online tutorial.
the FA channel is a dying business. Ergo, MS acquiring Etrade eg.
digital wealth is all the rage at all wirehouses because the writing is on the wall.
Brokerage will be fine. Comp is great, and they have always barely leveraged the firm. High priced WA, PB, Management, WS, and ISs, will get squeezed and reorganized until…. Credit might as well move to the business bank so they can quit pretending it is possible in WM.
AUM isn’t income, and given WIM’s efficiency ratio, it definitely isn’t. It’s the least profitable division.
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What do you mean? The assets under management are way to important for Wells overall to sell off. That would be a death nail for Wells Fargo
They should have bought Wealthfront. They could still be in the market, but that was one of the top fintechs. I've never seen them invest this much back into the firm though with all the apps, comp, etc. I've heard Black Diamond, eMoney are homeruns and so will Salesforce. They've loosened the guidelines on FiNet transfers too giving FAs better choice. Things are still very unsettled currently, but that happens with a lot of change.
@xwc+1fmhfT0a Agree and disagree. That is mostly correct for the younger generation, but many wealthy families have complex needs and would prefer to hire a trusted advisor to keep an eye over their investments and help financially navigate them through life’s situations. There is a lot of value in that, but it requires specialized knowledge and support.
As the younger generation matures over the coming decades, they will inherit wealth and their needs will also become more complex in ways which they may not be prepared for. So the wealth management industry is always going to exist to some extent.
But what you mentioned is exactly the reason why it’s becoming a lot more competitive, and will only continue to become more competitive in the coming years.
@byt+1fmhfT0a
Investors want to not have to deal with people. At least most of the new investors, anyway. They want to do it themselves or have a machine do it for them as they move a slider back and forth.
It was never prefect, but it does seem like WFA used to invest a lot more in services and support to make this a good place to be for FAs and really tried to promote a positive culture to help offset some of the reputation damage.
Instead of progress it now seems like costs and services have been cut mindlessly, service levels are down the drain, and the company is investing in inferior products and services nobody asked for (replacing the old ones that worked fine). As competitive as the recruiting environment is, why would anyone want to move or keep their practice here the way things are going?
Seems there's a lot of news out there about Advisors ripping off their clients. Maybe reorg will help this.
Huge changes coming. Pretty soon all of WIM will be leaving.
A billion dollar team just left and a huge team in Charlotte. Check back in a few weeks
What a great, well thought out and communicated thread. Thanks OP!
It's a lot better, but what would you suggest? There's already been a lot of reorganizing.