Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 105

Other articles on ‘wealth disruption’

In response to the two articles in Cuffelinks (Part 1 here and Part 2 here) on disruption in wealth management, readers provided some follow up articles on related subjects.

Why Paying for Financial Advice Makes Sense, New York Times, 3 April 2015

This article tells the story of LearnVest, a company established in the US in 2009 to bring financial planning to the masses. After spending US$75 million of venture capital money, it has less than 10,000 clients in its standard plan at $299 upfront and $19 a month. Sobering numbers for any fintech looking to engage with a large, untapped market. LearnVest has effectively capitulated by selling to a large insurance company, Northwestern Mutual.

Investing’s Old Guard Gets Its Algorithm On, Bloomberg Business, 20 March 2015

This article quotes an investor from Houston who pulled all his money out of the market in 2008 only to miss the gains as the market recovered to 2013. “I just need protection from myself” he says as a reason to let others make investment decisions for him. He did not like the high fees of traditional advisers, so turned to roboadvice. It then outlines the move by the US$3 trillion ‘behemoth’ Vanguard and the US$2.5 trillion Charles Schwab into this space.

Digging into Digital Advice White Paper, Fidelity Investments, 28 November 2014

This US White Paper focusses in particular on the propensity of Gen-X and Gen-Y to work with a ‘digital adviser’, and among affluent members of these groups, 29% are already familiar with digital advisers, and 7% use one. The potential benefits are lower fees for advice, ease of doing business, low asset requirements and online access to do-it-yourself tools. 46% of those surveyed believe professional financial advice is too expensive, and so digital is probably tapping into an audience that would not otherwise see an adviser.

The Paper also includes details on pricing levels (as low as 15bp), size of 15 largest online advisers ($4.3 billion in September 2014) and total number of providers (estimated at about 50). But it’s not only for new players. Fidelity offers views on how existing planners can evolve their practice. One message: “Be online, or risk being irrelevant.”

Robo-Advisor White Paper, Equity Institutional, 2014

This paper provides financial advisers with six ways to benefit from “the coming boom in robo-advice assets”. It distinguishes three categories of clients: delegators (“Do what you think is best with my money”), validators (who participate in decision-making) and self-directeds (who want to do it themselves). The writers say 72% of investors want some level of financial advice with their investment decisions. They reassure traditional advisers by arguing that the roboadvice experience is like a calculator with better graphics, often cold and generic and lacking the human element that is essential to good advice. It also has an impressive list of further reading.

 

Graham Hand is Editor of Cuffelinks. This article does not address the personal needs of any individual, nor is it responsible for the accuracy of the content in any referenced material.

RELATED ARTICLES

The upside of fintech for wealth managers

Will millennials change the investment landscape?

A robo response: digital wealth advice will engage at all levels

banner

Most viewed in recent weeks

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.

Too many retirees miss out on this valuable super fund benefit

With 700 Australians retiring every day, retirement income solutions are more important than ever. Why do millions of retirees eligible for a more tax-efficient pension account hold money in accumulation?

Is the fossil fuel narrative simply too convenient?

A fund manager argues it is immoral to deny poor countries access to relatively cheap energy from fossil fuels. Wealthy countries must recognise the transition is a multi-decade challenge and continue to invest.

Reece Birtles on selecting stocks for income in retirement

Equity investing comes with volatility that makes many retirees uncomfortable. A focus on income which is less volatile than share prices, and quality companies delivering robust earnings, offers more reassurance.

Welcome to Firstlinks Election Edition 458

At around 10.30pm on Saturday night, Scott Morrison called Anthony Albanese to concede defeat in the 2022 election. As voting continued the next day, it became likely that Labor would reach the magic number of 76 seats to form a majority government.   

  • 19 May 2022

Comparing generations and the nine dimensions of our well-being

Using the nine dimensions of well-being used by the OECD, and dividing Australians into Baby Boomers, Generation Xers or Millennials, it is surprisingly easy to identify the winners and losers for most dimensions.

Latest Updates

SMSF strategies

30 years on, five charts show SMSF progress

On 1 July 1992, the Superannuation Guarantee created mandatory 3% contributions into super for employees. SMSFs were an after-thought but they are now the second-largest segment. How have they changed?

Investment strategies

Anton in 2006 v 2022, it's deja vu (all over again)

What was bothering markets in 2006? Try the end of cheap money, bond yields rising, high energy prices and record high commodity prices feeding inflation. Who says these are 'unprecedented' times? It's 2006 v 2022.

Taxation

Tips and traps: a final check for your tax return this year

The end of the 2022 financial year is fast approaching and there are choices available to ensure you pay the right amount of tax. Watch for some pandemic-related changes worth understanding.

Financial planning

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.

Infrastructure

Listed infrastructure: finding a port in a storm of rising prices

Given the current environment it’s easy to wonder if there are any safe ports in the investment storm. Investments in infrastructure assets show their worth in such times.

Financial planning

Power of attorney: six things you need to know

Whether you are appointing an attorney or have been appointed as an attorney, the full extent of this legal framework should be understood as more people will need to act in this capacity in future.

Interest rates

Rising interest rates and the impact on banks

One of the major questions confronting investors is the portfolio weighting towards Australian banks in an environment of rising rates. Do the recent price falls represent value or are too many bad debts coming?

Sponsors

Alliances

© 2022 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.