ATTN: Advisors and Planners — Disruption Is Looming

“With the commoditization of investment advice and intense competition from robos and other more cost-efficient solutions, growth-minded advisors want to create bespoke experiences for clients.” — WealthManagement.com

By Brian Nelson, CFA

Hi Valuentum members, colleagues and friends,

Valuentum has a large subscriber base and is one of the most successful paid subscription financial information websites launched this decade. Over the past eight years or so, individuals, financial advisors and money managers from all over the world have subscribed to our services. We pride ourselves on independence and transparency, and we’re a champion of the investor.

Today, I’d like to talk directly to our financial advisor, financial planner, and professional money-manager members. You probably already heard the news yesterday: Charles Schwab, which handles roughly $3.5 trillion in assets, has moved to offering financial planning services for a flat $30 per-month fee starting April 1. The service called Schwab Intelligent Portfolios Premium, “includes unlimited guidance from a certified financial planner and an in-depth financial plan.”

You are already aware of the vast disruption that Vanguard has caused with its low-cost index products. Vanguard advisors are now charging a mere 0.30% on assets under management (or less), too. Fidelity has launched a zero-fee index fund, and Salt Financial launched the first negative-fee ETF. It’s cutthroat out there, and today (more than ever) it is critical to have a differentiated product.

The cookie-cutter asset allocation and index fund considerations just won’t cut it over the long haul when financial planning fees are going to $30 per month and providers are on a path to paying investors to hold their ETFs. Striving for outperformance is now becoming a much more important part of the picture than even just a few months ago. The writing is on the wall that disruption is looming in the financial advising and financial planning industry, perhaps sooner than later.

Advisors and Planners — I want to let you know that Valuentum is here for you and we’re considering new ways to help you in light of these industry developments. We’ll be rolling out a very important survey in the coming weeks/months on how best we can serve you. The next 5-10 years may see more disruption in the advising/planning market than ever before. I want you to be ahead of this, just like our team has gotten you ahead of so many great calls.

Keep on the lookout for that survey.

Thank you,

Brian Nelson, CFA

President, Investment Research

Valuentum Securities, Inc.

brian@valuentum.com

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