The State of Retail Wealth Management (and why YOU should care!)

A recent study release from PriceMetrix, a practice management company serving wealth management firms, contained very interesting data.  The name of the study was “The State of Retail Wealth Management” and it addressed key measurements as of year-end 2014.  Here are some of the study highlights for the wealth management industry:

Average number of households served (per each advisor)

Percent of revenue from fees

Average fee percentage of client account assets




This says that the average retail advisor works with 150 different familiesRetail Wealth Management and generates about one-half of his earnings from commissions on products sold to those families.  So you should know that when the “advisor” is earning one-half of his income from commissions he is a product “salesman”, which to most of us is different than “advisor”.  You should also know that for the time spent on your relationship, the average retail advisor has 149 other families he must serve which might make you wonder how deeply the advisor can understand you and your needs.

Here is the same set of numbers across the entire Payne Wealth Partners firm (this includes our division of Keystone Financial Consulting):

Average number of households served (per each adviser)

Percent of revenue from fees

Average fee percentage of client account assets




Our model has both a wealth planner and an investment manager working jointly on many accounts and you can see there is much more ability for our advisers to deeply understand and serve clients than if each had 150 clients to serve in all key aspects.  Our advisers truly are advisers—they are never product salesmen (the 100% from fees tells you this).  And the average fee for this deep, true advice is about 40% cheaper than the average fee charged by the retail “adviser”.

You be the judge if you should care that you might be paying much more for much less attention at the average wealth management firm.


Published: May 8, 2015
Phone: (812) 602-6301
Note:  The “Average number of households served per adviser” is calculated by dividing the total households Payne Wealth Partners serves as a firm, by the total professional advisers directly serving clients (per the most recent ADV Part 1 and ADV Part 2 filed with the SEC ).  This calculation is for a fair comparison to the industry study referenced.  A copy of the State of Retail Wealth Management study referred to above can be requested from our firm or can be found at
The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

Contact Our Offices

Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
Phone: 812-477-6221
Toll Free: 888-477-6221
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