Wealth management as a career?

[Anonymous]

Any recommendations for colleges or majors for this field? Are there online courses or resources?

[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.

Most wealth advisors are not beating the market, get real.

[Anonymous]

If she’s hot she should go into sales. Otherwise tell her to try only fans

[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.

I enjoy your naivete...

[Anonymous]

The biggest thing about the industry is it is very up and out. You get X years to build a book worth Y full of investors with Z investable assets. Unless you can hook up with a group/adviser with a book and have them pass their book to you at some point.

[Anonymous]

We have a financial manager and he does a lot more than just handling investments. Tax strategies, long term care insurance options, reviewing life and umbrella insurance coverages, pros/cons of setting up trusts, etc.

[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.

OP said kid didn't like the mathy parts. So they won't be doing that.

[Anonymous]

Anonymous wrote:

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.

Private markets are not correlated to stock market of fiscal policy.

[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.

No one beats the market, not even top HFs if you look over longer periods.

[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.

Sorry, you're wrong.

I'm from generational wealth and we (my siblings and cousins) are the first generation to manage our own wealth. With the amount of resources available to us and the ability to consolidate data, why would we need a wealth advisor. If you can look at investments objectively instead of emotionally a computer is a much better choice than a person, plus it's free and rich people are frugal to our core about things like that.

[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.

They have access to the private market through social connections.

[Anonymous]

Anonymous wrote:

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.

https://pillarwm.com/why-it-matters-ultra-high-net-worth-or-high-net-worth/#:~:text=High%2Dnet%2Dworth%20individuals%20are,%2Dworth%20individuals%20(UHNWIs).

You are talking about ultra high NW. I'm considered very high net worth and don't use wealth manager. I invest mostly in index funds, real estate, and a few independent ventures. We have trusts we set up through an estate lawyer. We don't need wealth management - even my parents and grandparents said they are a waste of money. I cannot imagine a NW at which this would ever make sense for me, unless I was the wealth manager for others.

BTW tax and other advice should come from tax/estate lawyers, if you're doing things properly.

[Anonymous]

Anonymous wrote:We have a financial manager and he does a lot more than just handling investments. Tax strategies, long term care insurance options, reviewing life and umbrella insurance coverages, pros/cons of setting up trusts, etc.

Sure he has a bunch of how-tos he follows, you have no real idea if it’s the most advantageous approach.

[Anonymous]

Anonymous wrote: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.

This.

Money management for MC/UMC, usually first gen.

[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.

No one beats the market except those thay get paid either way, like wealth managers - which is why they cannot be trusted.