July 30, 2009

Wall Street losses are RIA gains

You probably don't need to be told. You see them everyday; new clients who come looking for objective advice. Managing expectations, keeping clients calm ... and, oh yes, generating returns are all difficult enough. But if you're a wirehouse rep, add headline risk to the mix, the effects of which now have numbers attached. From the Wall Street Journal:

"Last year, registered investment advisers brought in more than $108 billion of net new assets into the three largest custodians, according to Charles Schwab Corp., which holds roughly $500 billion in assets for such advisers. By contrast, the four major Wall Street brokerage firms saw an outflow of $8 billion in 2008. Investors seeking to repair their damaged nest eggs say the chief lure of independent advisors is more-objective guidance." [Emphasis ours.]

Of course, as we noted last week, some Wall Street firms have it better than others (Goldman Sachs ... hello), but all things considered, it's the independent's time to shine.

Reprints Discuss this story
This is where the comments go.