An online tool from Wells Fargo Retirement helps
individuals create a savings plan and allows them to see their potential
monthly income in retirement.
My Retirement Plan prompts customers
to provide some information about their retirement goals and current situation,
then calculates a recommended plan and shows a suggested savings rate as a
percentage of the customers’ income. It also shows an estimated monthly income
the customer could receive in retirement.
If there is a retirement savings
gap, there is an ‘Ease into Savings’ option that allows users to adjust and
create a plan for savings that fits their financial situation. My Retirement
Plan is savable and can be adjusted at any time online.
According to a survey of 40 “sophomore year” independent registered
investment advisers (RIAs) who custody with Schwab Advisor Services, the firm
found a majority of advisers’ clients stick with them once they make the
switch. Not only do clients agree to transition with their advisers as they
seek independence, but most are immediately
on board when told about the change.
The RIA industry has witnessed an annual growth rate of 8% over the past 10
years, more than doubling industry assets under management, from $1.3 trillion
to $2.8 trillion , according to research from Cerulli Associates and Charles
Schwab Strategy estimates.
On
average, 79% of clients make the jump with advisers when they turn independent,
the survey found. The average length of time it takes for advisers to make the
decision to turn independent is two years. Self-employment and long-term
financial success are the main reasons for going independent. A solid majority
(90%) said independence positioned them better for growth. One-hundred percent
of those surveyed said they would make the same decision again, and would
recommend others do the same.
Most advisers noted “the ability to provide more personalized service to
clients” as being a very or somewhat important aspect in the decision to become
an RIA, followed by “the preference to work for yourself.” Also important was
the need to “protect their personal reputations” by moving to the independent
model.
(Cont’d…)
Calling the RIA space one of the fastest-growing segments of financial
services, Jon Beatty, senior vice president of sales and relationship
management with Schwab Advisor Services, said it is clear that the appetite for
independent advice is expanding as more and more advisers turn independent. “With
industry growth comes more choice for advisers as they seek out a path to
independence,” Beatty said. “Schwab works one-on-one with advisers to determine
which solution is best for them, evaluates the economics, and helps develop a
transition plan tailored to their needs.”
Schwab also launched the RIA Economic Discovery Tool to provide a hypothetical
view of the financial benefits associated with the RIA channel compared with
other advisory models.
“We’ve found that the economic decision can often weigh heavily on an
adviser considering a transition,” Beatty said. The tool, paired with a
conversation with a conversation with a Schwab business development officer, can
give a better picture of what the transition might mean to an adviser.
More information about the tool is here,
and the survey can be foundhere.