Podcasts

The future of the wealth management firm with AdvicePeriod’s Jonathan Straub

  • AdvicePeriod attempts to be a different type of wealth management firm.
  • Co-founder Jonathan Straub joins us to talk about the hows and whys.
close

Email a Friend

The future of the wealth management firm with AdvicePeriod’s Jonathan Straub
With roboadvisors, exchange traded funds, and mobile banks in your pocket, what does the wealth management firm of the future look like? It feels like core parts of the investment process are being commoditized, if they haven't been already. So, where does a asset manager provide value? Jonathan Straub, co-founder of AdvicePeriod, an L.A.-based wealth management firms joins me to talk about the future of wealth management. He believes the current model of wealth management is outdated and so, AdvicePeriod is his effort at creating a wealth management firm that blends technology and advice, with a corporate culture that is deliberate. SubscribeiTunes I SoundCloud I Spotify The following excerpts were edited for clarity.

The old wealth advisory model

My partners and I have worked together for the better part of 15 years. We had success in the space -- we grew our prior firm to about $10 billion in AUM and ultimately sold it. What we were doing at the time seemed quite original: open architecture investing, consolidated performance reporting, and access to the best managers. Really, what we saw was access to information had commoditized much of the investing process. Take asset allocation, for example. Many of the model portfolios are readily available to consumers and advisors. We also found our competitors spent a lot of time tying to analyze and forecast financial markets. In our experience, we found that no one can tell you what the market will do today or in the future, yet firms continue to invest the resources in doing so.

Building something different

We thought there was an opportunity to change the discussion and focus on the things that truly matter, like actionable advice. Hence, that's the name of our firm, AdvicePeriod. We approached creating the firm from a blank sheet of paper. Meaning, if we didn't have any legacy people, processes, and clients, how would we go about building the wealth advisory firm of the future? What services would we provide? What would we charge? What would we change about the client experience? And ultimately, what kind of culture would we need to make this change in the industry sustainable?

The role of technology in investing

I think a lot of people in our industry saw robo-advisers as threats. We have embraced them as part of our solution. If you believe many parts of the investment process have become commoditized, we want to use our tools the best we can. We offer our clients access to many of the commodity solutions and commodity prices. From our perspective, it frees us our time to really focus on the value-add planning processes. We like to call ourselves bionic advisors. This is the idea that we can use technology to run our practice more efficiently and also to give our clients better experiences. And ultimately, we want to use technology to reach a wider audience. These are really the three ways we see technology helping us work with clients.

0 comments on “The future of the wealth management firm with AdvicePeriod’s Jonathan Straub”

Podcasts

‘There’s been a shift in what banks want to work on versus what consumers are driving’: Mambu’s Robin Smith

  • Mambu's Robin Smith has been through a cycle or two with core banking software.
  • He joins us on the Tearsheet Podcast to discuss what the evolution of banking software has to tell us about banks' needs today.
Zachary Miller | February 01, 2023
Payments, Power of Payments Podcast

Power of Payments Ep. 22: ‘Frankly, the most important asset for SMB owners is time’ – Chase’s Brad Brodigan

  • Brad Brodigan, managing director and global head of SMB payments at Chase, joins host Ismail Umar on this week’s podcast.
  • He discusses the most important trends he’s seeing in SMB payments, the kinds of attributes SMBs look for in a payment processor, and how their needs differ from those of enterprise and retail customers.
Ismail Umar | January 27, 2023
Podcasts

Behind the launch of the QuickBooks Business Network with Intuit’s Juliana Berger

  • Intuit is looking to get a bigger payments chunk of the $2 trillion in invoices it tracks on QuickBooks.
  • The firm has launched a B2B business network aimed at targeting larger firms with payments automation.
Zachary Miller | January 26, 2023
Podcasts

Behind Citi’s move to become a global partner bank, with Chafic Haddad

  • If 2022 was the year of launching partnerships between FIs and tech firms, this year is more about fine-tuning them.
  • Tearsheet sat down with Chafic Haddad to discuss what Citi offers fintechs and the challenges and opportunities in providing these firms with global transaction and trade capabilities. 
Zachary Miller | January 18, 2023
Podcasts

Steez Podcast #5: Gen Zers – the sustainable generation

  • Gen Z and Millennials make up 50% of the world’s population. And 75% agree that their investment decisions can influence climate change.
  • They are not just investing to align with their values. They're actively driving change with their purchasing preferences and with every transaction.
Tearsheet Editors | January 18, 2023
More Articles