Is it worth using some private wealth management services? (E.g chase private bank, morgan stanley..) what are the benefits?
If your investments (not including housing, retirement, crypto) are over 20M, maybe.
I can’t speak about the ones you listed, but a good FA is worth it. They can grow your money better than you can, diversify you according to your goals and keep you agile in the market, help you mitigate taxes, keep you updated with trends, etc. Most FAs subscribe to financial tools that help with seeing trends. You can subscribe to them, too, but it’ll cost you. It’s cost effective for FAs to subscribe because they’re using it for their clients. They can also bring you investment vehicles that may be harder to find if you don’t know where to look. On top of that, they can advise you on whatever finance questions you have. If you like to do some of your own investing, a good mix is use an FA at whatever level of service you want and then have a separate portfolio where you do your own thing.
If you look up financial advice, an FA at some level is good to have as low as 100K of investments. Then increase level of service, as needed as your investments grow.
It depends on your objectives and desired level of involvement. It's a giant industry so obviously there are many who happily use them IMO, for most people who accumulate wealth through w2 and take a 'standard' approach to investments, there's no need As NW increases, you can either do more research to utilize more techniques customized to your situation; but if that is too much time or not fun to do, or want a professional to increase confidence or take emotion out of it, there can be value Nonetheless I'd say try to find a fee-only fiduciary before going to one of these big banks with hefty AUM fees and you're just a cog in their sales system
Yeah, 1% is way too high when annual EV is in the 7-8% range. All that for a return that is more likely than not to be less than the S&P 500.
Annual EV is in the 7-8% range?
Why not just buy SPY?
The short answer is it may not be the ideal asset allocation given financial goals There are also many other tools available as the goals get more niche and the $$ goes up. Think CRTs & GRATs, exchange funds, etc. Then there's gifting strategy & estate planning. There can also be some other tax optimization strategies. Not to say that are slam dunks for anyone, especially with high fees on them. One could also DIY and buy these products a la carte. But there *could* be more to it than buying one, or a basket of index funds
There are also products that are not available to retail investors, such as private equity offerings and institutional only funds, that FAs can get you access to
If you have tax mitigation needs, a net worth >3M, and really don’t want to deal with them/don’t know how to do it yourself/have complicated multigenerational issues, then it’s worth considering.
But the wealth manager isn’t really doing estate planning
Doesn’t mean there aren’t issues they can help with