Seeking Alpha

Retirement Advisor: Convenience Vs. Commitment (Podcast)

by: SA For FAs
Summary

Fortune dubs Schwab’s new advisory offering, consisting of robo-allocation and unlimited access to a CFP, as a Netflix-style subscription model. It’s low-priced and attracting assets.

I conceptualize it more as a salad-bar model: it’s assumed diners will eventually get full, and the food is a bigger draw than talking about the same boring financial stuff.

But the way you measure the experience is from the time you leave the restaurant or embark on your retirement.

Might a single, choice meal, or a single advisor who knew your situation intimately, have been better than the salad bar?

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Fortune dubs Schwab’s new advisory offering, consisting of robo-allocation and unlimited access to a CFP, as a Netflix-style subscription model. It’s low-priced and attracting assets, but is it the right approach?

This podcast (5:27) suggests that what is primarily at issue in the choice between a low-cost subscription service and higher-cost, more customized advice is a consumer choice between convenience and commitment.