Consumer research tells us that investors are confused about the available options when it comes to managing their wealth. They don’t really know the difference between brokers, advisors who work for large investment firms and independent advisors. Charles Schwab is starting an information campaign to explain the value propositions of the independent (Registered Investment Advisor) RIA model by using language that resonates with high-net-worth clients.
The reason for Schwab’s initiative is stated well by Janet Stanzak, principal of Financial Empowerment LLC and the 2015 chair of the FPA.
“High-net-worth investors would much rather work with someone who takes their entire financial situation into consideration, so it makes total sense for them to be doing this.”