Comments (8)

Sep 21, 2017

"The only thing I know is that I know nothing, and i am no quite sure that i know that." Socrates

    • 1
Sep 22, 2017

Wealth Management: Jane and Bob plus a hundred of their friends have a million bucks a piece in retirement assets, I tel them how to invest it and possibly other assets for a fee that I may, or may not disclose.

Asset Management: Runs a fund that Jane and bob can invest in (FAKEX--I hope that's not a real ticker) for X percent annually.

    • 1
Nov 21, 2017

What's the more enjoyable job?

Best Response
Nov 25, 2017

it depends where you are and what you enjoy. In WM, the goal is almost always to become a Financial Advisor (FA) with a bunch of wealthy clients. Planning is nice, but getting them to trust you and put their money with you is the goal. You can be a very successful FA if you have the right personality even if you can't spell finance. In a past life I did planning divorced from asset gathering, and there was still a ton of "this is a stock, this is a bond..." (Don't aim to go that route, it pays horribly, and is difficult to get out of)

Asset Management has more diverse roles, and more diverse experiences. You can be a wholesaler, which is basically a FA on steroids. You would travel a part of the country selling the FAs on using the funds. (or institutions on SMAs) You can be in research, trying to help the PM figure out what investments to buy. Heck you could even be the PM himself. (the ones in my department have 17 and 12 handicaps, btw) There are also shitty jobs in AM (Proposal Writer--cool people where I work, but the job has to stink) There are even artsy jobs in AM. That ad for Powershares on Bloomberg? somebody designed it. We've got a TV studio at work for F*ck's sake.

The TL;DR is that there are many more jobs in WM, and they can pay very well. I know that a few years ago top Merrill FAs were easily clearing a million a year coasting on the back of their previous work gathering clients. There are far fewer jobs in AM, and more competition, but in my mind they are more interesting. (also, almost all are from Boston-[Fidelity] to Philly-[Vanguard])

    • 4
Nov 25, 2017

You can be a very successful FA if you have the right personality even if you can't spell finance.

This may have been accurate 20 years ago but it definitely is not true today. Yes, you need an outgoing personality but without the ability to manage money, run planning analysis and provide solutions to complex financial situations....You won't last in this business. There is a ton of competition and we all essentially offer the same thing. HNW and UHNW clients are smart enough to expect a competent and capable advisor.

    • 3
Learn More

Boost your resume and land a finance job by passing the FINRA SIE. 264 pages & 1981 smart flashcards written by a former 8X top Fidelity instructor. Try it for 0 bananas here.

Nov 25, 2017

I wish your statement was true, but it isn't. I gave my cousin shit for the ad her employer (CFP Board) put out about people not being able to tell a DJ from a FA, but it's true. my grandma/parents/aunt are mass affluent and their FAs are all idiots. I once had to tell a school teacher that she was screwed because she'd cashed out her half million dollar pension for a VA.

I do not want to put you down, and good, honest FAs exist. It is just that there are quite a few poor ones as well.

Nov 28, 2017

I think we are comparing apples and oranges here. My clients have an average net worth of 10MM, I don't deal with school teachers or sell variable annuities. I manage close to half a billion in AUM.

Sounds like your experience with PWM is extremely limited and second hand...perhaps you should offer advice on subjects you actually understand.

Nov 25, 2017