Opinion on Private banking/PWM job growth

Do you still believe the PWM industry is still growing despite the increase in robo advisors taking market share

What do you believe the future is like? Would go into it if you had to start all over again?

For reference I am a student and want to get into the PWM industry in the future, however I am unsure if the industry is dying

Comments (4)

Most Helpful
Jul 28, 2022 - 8:29am
rickle, what's your opinion? Comment below:

PWM is not going away. The Robo world is for lower end accounts who really don't need / want an active relationship. The role of an FA is far more than just getting a client to open / fund an account. The "A" stands for Advisor. Todays advisor is typically a fiduciary and needs to be well versed in many planning areas. If it's just about fund A vs. fund B there is little value. But when you're dealing with many planning areas (tax, retirement, business succession, wealth transfer, income, college funding, charitable, etc.) the client WANTS a relationship. I've been doing this for over 30 yrs. Yes most of my clients are older. The argument today s that younger folks are far more comfortable with the tech and really don't want to deal with a human. Well, my experience is quite different. I work with many of the young professional kids of my primary clients. They're smart and eager...but most of them know very little about retirement planning, taxes, asset classes, portfolio risk, etc. They think it's cool to trade on Robinhood but they don't know what they're doing. Again, just my experience. To a person, they have all started working with me. I advise them on their 401k (as a free service), get them set up in a roth IRA if their income allows that, establish systematic funding into brokerage with an appropriate portfolio I create for their risk tolerance, make sure they're properly insured, and in general, discuss a myriad of financial topics with them so they get educated. Kind of my pro bono but it's fun!

At the end of the day, humans want and need advice as they move along the lifestages of money spectrum.

Aug 2, 2022 - 1:03pm
lolfordays, what's your opinion? Comment below:

Outside of robo advising, what are your thoughts on industry job growth as a whole? For example on the BLS website it says financial advising jobs are growing slower than the national average… what do you think contributes to that? And what do you believe the direction will be like going forward? I mean theres only so many UHNW families/ opportunities for financial advisors out there.

Im scared of getting into a dying field

Aug 2, 2022 - 4:15pm
rickle, what's your opinion? Comment below:

Personally I'm not concerned (but I'm 58). There are literally millions and millions of Americans without an advisor. They all need help. They're not UHNW but they still generate good revenue. There are also an enormous number of advisors retiring or looking for succession plans now. This is such a great opportunity to acquire clients without all the sweat. If I were just starting today, I'd align with an RIA that was acquiring, learn the business and become part of the succession plan. If I broke off on my own, I'd get a credit line and acquire practices. Hire junior advisors to work the client base for a split. This could be like owning McDs franchises. As long as the revenue was greater than the cost you'd make money per "store". There's a ton of ways to be entrepreneurial out there or just join a large practice. They're always looking for talent as they acquire new books and need to absorb them.

Aug 3, 2022 - 9:01pm
Whatever1984, what's your opinion? Comment below:

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The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
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