Anonymous
07/29/2025 19:40
Subject: Wealth management as a career?
Anonymous wrote: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.
A wealth management firm to UHNW has all this under one umbrella.
You make a silly statement…every billionaire has a wealth manager either through a family office or through a 3rd party. Most people at $100MM outsource.
I doubt you are taking full advantage of every tax shelter available to you or ways to avoid capital gains and all the strategies a top firm knows to do instinctively.
Anonymous
07/29/2025 18:59
Subject: Wealth management as a career?
I think going into this field not liking math is tough. Yes, agree there is a sales component which is also tough. You need to be good at both.
I considered going into this field after my MBA, but after realizing I would have to build my own client base and it’s basically like being a sales rep but a lot more stressful, didn’t want do it.
Is she interested in taking the CFP exam? There’s probably some resources about the career on the CFP website.
I considered going into this field after my MBA, but after realizing I would have to build my own client base and it’s basically like being a sales rep but a lot more stressful, didn’t want do it.
Is she interested in taking the CFP exam? There’s probably some resources about the career on the CFP website.