Locator: 51551VANGUARD.
Vanguard now competes with Schwab directly.
The pie is huge: see "great wealth transfer" below.
My hunch: brick-and-mortar play becomes even more important.
- "Great Wealth Transfer," an estimated $124 trillion is projected to change hands globally by 2048;
- the vast amount of this transfer will pass through women
- these new wealthy will likely spend an average of $50,000 / year to pay for wealth management
- current rule of thumb: annual fees of 1% of assets under management
- will we go from percent to fixed fee?
- Schwab and Vanguard will need to bring that average down significantly; AI will make it possible
Neither Vanguard nor Altruist have brick-and-mortar sites for retail customers.
Numbers:
- Altruist: bought for $4 billion
- Schwab's market cap: almost $200 billion
Schwab does (have local brick-and-mortar sites for retail customers).
