New on the Pod
Michael Batnick spoke with David Armstrong from WealthManagement.com to discuss two stories that reveal the risks of building your business on platforms you don’t control. They break down the controversy surrounding the Forbes advisor rankings, why major firms are pulling back, and Schwab’s decision to raise the minimum for its advisor referral program to $5 million. Plus, what both stories teach financial advisors about rankings, referrals, brand building, and owning your path to growth. (Listen)
Good Stuff This Week
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Investment scams have always existed. The combination of smartphones, social media and generative AI have now made it infinitely easier to launch scams. (Millions of drivers licenses ended up on the dark web this week, ugh.) Few financial advisors want to market their role as a gatekeeper against scams, but it represents a real benefit of working with an advisor.
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Fidelity has already opted out of new tax-aware long-short business. Now Schwab is drastically upping its limits as well, effectively eliminating many new clients. It would be interesting to hear more from them about the reasons behind these moves. There is still plenty of demand for long-short capacity so it will be interesting to see if other firms take up the mantle.
The Rest of the Story
Improving the scalability of advisory firm flat-fee models. (Kitces.com)
Altruist has launched the Hazel Financial Planning Agent. (RIABiz)
Anthropic is seeking out financial advisors for its soon-to-be wealthy employees. (CityWire)
Flourish is changing hands. (Barron’s)
Venture capital is not “venture capital” any more. (Anil Dash)
Public to private equity in the United States: A long-term look. (Mauboussin and Callahan)
Four questions attorneys and financial advisors are getting from readers of Belle Burden’s “Strangers.” (WSJ)
The high cost of adulting in America today. (Abnormal Returns)
Why financial security is sexy. (Your Brain on Money)