Broker Check
Sorry If You Got The Wrong Impression

Sorry If You Got The Wrong Impression

April 21, 2017

The graphic above, from Wednesday's Wall Street Journal, shows that traditional brokerage firms have been bleeding assets at an unprecedented rate over the last 7+ years at the expense of independent, fiduciary-minded financial advisory firms like Servo.  In 2010, commission-based brokers (JP Morgan, Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley, Wells Fargo, LPL, Edward Jones, and every bank brokerage department in your town) controlled almost 2/3 of investors' assets.  For the first time in history, we might see that amount fall to less than 50% in 2017.

Want a better appreciation for why this is happening?  The video below is a fairly accurate representation of the brokerage model and their customer relationships: