Charles Schwab is experiencing significant declines in net new assets as a result of the TD Ameritrade integration. In October, the company reported a decrease in net new assets to $11.3 billion, down from $27.1 billion in September and a far cry from last October's $42 billion. Schwab attributes this decline to attrition from losing TD Ameritrade clients, as well as delayed tax disbursements in states like California.
Tax-Managed Mutual Funds Under Scrutiny
The Challenge of Multi-Generational Relationships
In an ideal scenario, the children of wealthy clients would continue working with their parents' financial advisor. However, a recent survey conducted by industry researcher Cerulli Associates reveals that these multi-generational relationships are rare. Only 19% of affluent investors with over $250,000 in investible assets work with their parents' advisor. Cerulli suggests that advisory firms should invest more effort into attracting and serving the next generation of clients by potentially bringing in another advisor to handle these relationships within the practice.
LPL's New Channel
LPL Financial has introduced a new employee channel specifically designed for advisors who serve wealthy clients. While most LPL-affiliated advisors are independent contractors, this new channel, known as Private Wealth Management, will be staffed with W-2 employees. LPL's existing employee channel, Linsco, primarily caters to mass-affluent investors. The firm believes that the new affiliation model can provide a more appealing environment for advisors from large national brokerages or private banks, offering greater flexibility and potential for higher pay.
Going Beyond Meetings
According to Dennis Mosely-Williams, a consultant in the industry, if a client meeting is perceived as just an ordinary gathering, then the advisor has failed in their approach. Mosely-Williams emphasizes the need for advisors to transform meetings into events, especially in an era where an array of low-cost products and services makes it vital for advisors to distinguish themselves. During The Way Forward podcast, he advises advisors to focus on building personal connections with clients, urging them to "ask your clients to buy into you, not from you."
The Kraken's Pursuit of Better Marketing
Snappy Kraken, a company that launched in 2016, recognized the lack of effective content creation, compelling campaigns, and successful prospect conversion options available to advisors. With a customer base that includes advisors managing approximately $1 trillion in client assets, Snappy Kraken primarily serves the registered investment advisor channel. However, the company has been actively working on expanding its presence in the broker-dealer space. Recently, Snappy Kraken achieved a significant milestone by securing preferred-vendor status from LPL Financial.
Q&A with Stephanie Link: Finding Opportunities in Equities
In this featured Q&A, Stephanie Link, well-known for her role as the chief investment strategist at Hightower and frequent appearances on CNBC, shares her insights. Link believes there are ample opportunities in equities, including FAANG names and industrials. She also explains why the U.S. economy has defied expectations of a slowdown in 2023. Additionally, Link provides advice on maintaining composure and confidence when facing the camera.
Wishing you a fantastic weekend!
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