scorecardWealth management comes out of retirement

Wealth management comes out of retirement

Robo-advisors are an opportunity, not a threat. Financial advisors have been using software for years to help them determine the appropriate asset mix for their clients, so why not put those same tools right in the client’s hand? While you’d think financial advisors would see this development as a threat to their livelihood, they have quickly and smartly realized robo is, in fact, an opportunity.

The more clients are engaged, the more likely they are to stay. So why not leverage technology to help? Happy clients lead to happy financial advisors, which lead to happy wealth managers. RIAs, broker-dealers and the big wirehouses are loving the current environment. Morgan Stanley is a prime example, as its overall profits continue to grow on the back of its wealth management business.

The move to fee-based accounts couldn’t have come at a better time, with this never-ending bull market generating wealth for investors that, in turn, generate fees for their managers. However, if the market decides to correct, as baby boomers pull out more money than millennials put in, this party might not last forever.

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