Why move to my custodian instead of a retail account?

[gwendally]

I may be over-thinking this, but I need to clean up my spiel when a client asks where they should open an investment account.

Until this year I wasn't affiliated with a custodian.

Comments

[gwendally]

http://www.morningstar.com/advisor/t/42987672/what-more-validators-mean-for-your-business.htm

[barking_iguana]

"... the biggest benefit is that it's easier for me to work on their account."

Is it legal and sensible in your business model to give clients a discount for choosing an option that requires less of your time?

[gwendally]

Well, I'd do more work on their account if they put it with my custodian, so it sort of balances out.

I think the biggest divider is "do you want to manage this yourself with my occasional advice" or "do you want me to take care of this with your occasional advice" is how it breaks out.

[crazyburro]

FWIW I'm an uncomfortable DIY, bordering on validator. As the morningstar article points out there's a blurry line here esp between validator and DIY. I use morningstar and the free side of a couple of the robo-systems to validate the choices I make, but probably need a bit more than that

[allyphoe]

Glossy handout / laminated card explaining the options?

So in the Vanguard column, it would say things like, "I only see your investments during your meetings with me. / You may get less value from me for the same cost, because this is inefficient. / You have more control and better access to on-demand reports. / This is a good option if you enjoy managing your own investments, but like having access to unbiased advice."

And SSG says, "I can look at your investments at any point, and routinely review them on [schedule], even if we can't meet. / I can give you more thoughtful, specific advice in less time, giving you better value for your money. / You need to go through me for information not contained in your monthly systems. / This is a good option if you want to be involved at the big-picture level, but are less interested in the day-to-day minutae."

Something standardized, for them to take home and think about.