As we’ve been sharing in recent Insights posts, WealthFactor is a digital wealth services company designed with the client at the center, with a goal of making managing wealth simple, accessible, and transparent.
We approach investing and serving clients very differently than traditional wealth managers. In fact, there’s a lot we do differently.
THE INDUSTRY STANDARD
In order to talk about how WealthFactor is different, we need to examine two things:
The shortfalls we have found in the industry.
The delivery methods for wealth services that are currently available.
First, our founder, Bill Woodruff, realized after decades in the wealth management industry, that a few things were broken.
Nearly all financial advisors aren't actual subject matter experts.
The system puts the advisor at the center and in control, instead of you.
Second, clients today typically have two options for managing their wealth.
TRADITIONAL: They can work with a traditional wealth advisor, whether that’s an independent registered investment advisor, or one that works at a big financial firm like Morgan Stanley, Wells Fargo, UBS, or the like.
ROBO/ONLINE: They can use a robo-advisor such as an online service like Betterment or Personal Capital, or a phone/retail brand style service like Vanguard or Schwab. This is very much a DIY approach to wealth management.
Of course, there are positives and negatives for both options.
TRADITIONAL PROS AND CONS
With the traditional route, clients can expect to receive personalized planning that’s good for complex situations (fantastic!) but also pay more for that service, often with less subject matter expertise and technology that isn’t built for the client, but the advisor (boo!).
Some common pain points we often hear about the traditional wealth service model are:
It’s not clear what I’m actually being charged for.
When I have questions, getting a hold of my advisor can be a challenge.
The website is difficult to navigate and understand.
The typical cost is an average of 1% of assets.
ROBO/ONLINE PROS AND CONS
With the robo route, clients can expect technology that’s actually built for them (yay!) and lower fees (also yay!), but if they have complex needs or require expert advice, that may be hard to find, or at least difficult to get ahold of someone who can actually help (bummer!).
Some common pain points we hear about often with this model are:
When financial scenarios get complicated, this service doesn’t serve me well and I’m left navigating my situation alone.
I’m skeptical of financial advisors, hence why I usually tackle it on my own.
I don’t feel in control of my wealth.
The typical cost is 0.5% of assets or less.
Our founder thought there should be a better option!
THE WEALTHFACTOR WAY
WealthFactor has reimagined wealth services by removing the parts that do not work and reworking the parts that do. Here’s how:
is designed for you, not a financial advisor.
offers robust wealth management tools.
offers access to real, right-fit wealth experts.
provide personalized planning and investment services.
help with complex situations like tax, estate, and more.
is only 0.65% of assets up to $1 million, and 0.35% thereafter.
HOW IS THIS POSSIBLE?
Does it seem too good to be true that we can offer the best part of both the traditional model and the robo model and still provide it for less cost?
By cutting out unnecessary layers of people and processes, and instead focusing on the efficiency found by leaning into technology, we can offer real wealth expertise only when you need it via a user-friendly, secure platform.
And best of all, you maintain control of your wealth.
Take a deeper look at WealthFactor, including how we approach investing and serving clients.
Advisory services are offered for a fee by WealthFactor, LCC, a registered investment advisor. Registration does not imply a certain level of skill or training. The material presented in this advertisement is for informational purposes only and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy or investment product. All visuals are illustrative only. Past performance is not a guarantee of future return. Investing involves risk. Calculations within our tools are based on information provided by the user. We recommend consulting with a financial professional before acting on any information provided by these tools. *A minimum monthly fee may apply. This fee will not exceed 0.98% of assets. Read Full Disclosures