Wealth management as a career?

[Anonymous]

Is it a good choice? DD is interested in finance but not the number crunching, accounting type of work.

How would this career evolve, especially with AI and generational wealth changes?

[Anonymous]

Personality. Like being an art dealer. Sales like client acquisition and retention.

[Anonymous]

It’s actually not as vulnerable to AI as you think.

First, AI isn’t going to convince a HNW person to allow a firm to manage their money so sales/relationship folks won’t go anywhere.

Second, a good wealth management firm is providing tax planning, estate planning, etc. in addition to portfolio management (that aspect is definitely getting more automated).

Finally, most clients expect a human to answer the phone and talk to them especially during big market move days.

It’s not really AI per se…but more people are more comfortable managing their own money which impacts wealth management firms.

[Anonymous]

It’s sakes. Is she attractive and have a very good personality?

[Anonymous]

Sales

[Anonymous]

Anonymous wrote:It’s actually not as vulnerable to AI as you think.

First, AI isn’t going to convince a HNW person to allow a firm to manage their money so sales/relationship folks won’t go anywhere.

Second, a good wealth management firm is providing tax planning, estate planning, etc. in addition to portfolio management (that aspect is definitely getting more automated).

Finally, most clients expect a human to answer the phone and talk to them especially during big market move days.

It’s not really AI per se…but more people are more comfortable managing their own money which impacts wealth management firms.

HNW individuals won’t put 100% into index fund or stock funds, they need access to private markets which still require an allocator. That might change in the future in another 10-20 years.

[Anonymous]

My cousin is one and she loves her job, makes good money and says she doesn’t work all that hard.

Sounds pretty good to me.

[Anonymous]

Anonymous wrote:My cousin is one and she loves her job, makes good money and says she doesn’t work all that hard.

Sounds pretty good to me.

Selling to rich people is the best job. See pharma sales too.

[Anonymous]

My brother is one - he has the personality for it and I think that's key.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s actually not as vulnerable to AI as you think.

First, AI isn’t going to convince a HNW person to allow a firm to manage their money so sales/relationship folks won’t go anywhere.

Second, a good wealth management firm is providing tax planning, estate planning, etc. in addition to portfolio management (that aspect is definitely getting more automated).

Finally, most clients expect a human to answer the phone and talk to them especially during big market move days.

It’s not really AI per se…but more people are more comfortable managing their own money which impacts wealth management firms.

HNW individuals won’t put 100% into index fund or stock funds, they need access to private markets which still require an allocator. That might change in the future in another 10-20 years.

HNW starts at $30MM. Thats still low enough where you find people managing their own money just with public market investments.

I’m now sure about wanting access to private markets which have been found to be generally poor investments…but you do hit a level where you want high level tax and other advice.

It also makes life very easy on the heirs to have all your money at a firm where they know where it all resides and they have hopefully established trusts and other things to preserve the estate.

[Anonymous]

I did it for myself and stopped working 5 years later. Had I know what it even is at 15-18, I would have been done working at 25 and simply managed my money.

[Anonymous]

How can it just be sales? You also actually have to be good at managing and growing wealth and beating the market. That's really difficult.

[Anonymous]

I think it's mostly helping old people who worked hard and did well try to figure out how to pass money to a generation they are afraid doesn't understand and will piss through it. Much of the actual money management is just good hygiene.

[Anonymous]

If index funds didn’t kill that industry, than AI will not either.

[Anonymous]

Anonymous wrote:How can it just be sales? You also actually have to be good at managing and growing wealth and beating the market. That's really difficult.

It's not just sales, but the hardest part by far is getting a new client to sign on the dotted line and hand over their money to you.

Actual investment management is essentially automated, though a HNW person wants hand holding explaining how you are allocating their portfolio and wants to know their advisor will pick up the phone if they call.