Private Wealth Management
I have not been able to receive a clear-cut answer on this -- how is this different than being a financial advisor? It seems that everyone I have spoken with has a different view.
Any PWMs on here that can shed insight? Any info would be appreciated. Thanks!
Just my firm and my opinion but Private Wealth Management at our firm
means you must have a 65 or 66 and act as a fiduciary. I’m
guessing not all firms are like that.
I think Wealth Management is just a sales title to generate interest
from prospective clients to make what we do sound more inclusive and
more important. Our industry is awesome at changing titles and
fees every 3-5 years. When I got in the industry 15 years ago we
had firms charging 8.5% commissions. Then it dropped and you got
12b-1’s. Then we had wrap accounts charging 2-3%. Now those
accounts are down to 1-1.5%. Now we need Private Wealth
Management! In 3 years the fee on advisory accounts will fall to
.75% and we’ll have a new title.
It's called.....how can I differentiate myself to the HNW, to sound like a rockstar, top dog money man. I know at Merrill there are internal designations, based on certain critereia. Not just Pres. club VP etc..
If you have X amount of 10 million dollar households, and your business plan indicates that this is your market, and so on.....you may receive a title, but they are all "investment advisors". And yes,....these are the same guys that ten years ago were referred to as ....."stockbrokers".....
That's what I thought. So many I've spooken to have made it sound like a senior-level position and that it's the best thing since sliced bread.
Obviously, if you're hitting home runs with $5-10M clients left and right, more power to ya. But it didn't seem to me that there was much differentiation.
We all use the same tools…there is not a market place that only the “elite” are allowed to trade in. Advanced designations are important, I am working toward a CFP. But I never lose sight…A High school drop out with enough intelligence and ambition, could be a million dollar producer in 5 years. And on the other side…Long Term Capital, run by 2 Nobel Peace Prize winners in economics, with a hand picked staff of gods in the business - in the Money town of Greenwich Ct. (where I lived for 5 years) …They came darn close to causing a meltdown in the world financial markets.
I’ve heard another distinction that wealth management includes lending too…not sure if this changes the workload too much…
I would like to go indy in a few years but need the training first.... so is this a place that will give great training and experience? thank you all for all your replys, especially on the costs side. I did not know about those.