{"id":1743,"date":"2012-01-29T03:14:05","date_gmt":"2012-01-29T11:14:05","guid":{"rendered":"https:\/\/www.wealthfront.com\/blog\/?p=1743"},"modified":"2022-01-11T17:12:46","modified_gmt":"2022-01-12T01:12:46","slug":"silicon-valley-money-management","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/silicon-valley-money-management\/","title":{"rendered":"Does Your Financial Advisor Think You’re Clueless?"},"content":{"rendered":"

Wealthfront\u2019s CEO Andy Rachleff published a column last week on Forbes.com about how this generation of IPO wealth may help transform the business of money management. It offers a sharp contrast to the attitude that many Wall Street brokers take toward their clients, which was obvious in an article that ran last week in the New York Times (<\/em>more on that below).<\/p>\n

In Hey, Silicon Valley Engineers, Time To Toss Out The Bankers<\/a>, Andy wrote:<\/p>\n

This era\u2019s IPO wealth is being created by young, Web-savvy engineers who have a deep-set aversion to traditional, expensive ways of doing things. They also have a deep understanding of how to use the Web to manage all aspects their lives (and possibly yours \u2013 but that\u2019s a side point).<\/em><\/p>\n

These talented and creative Web engineers gave the word \u201clike\u201d another meaning. They made it possible to get unbiased \"Man-Blowing-Arrows\"<\/a>reviews on just about anything, and to get tonight\u2019s dinner at a discount.  They have helped revolutionize dating, dining, traveling and shopping, by recognizing what Leonardo da Vinci said \u2013 that simplicity is the ultimate sophistication. Their interfaces overlay software that radically lowers prices because it replaces human interaction.<\/em><\/p>\n

It\u2019s unlikely the new millionaires will be satisfied with the traditional model of wealth management, which is layered with fees and rotten with conflicts of interest.<\/em><\/p>\n

Andy predicted that Silicon Valley engineers will demand new and better ways of managing money. His views are in sharp contrast to those of many who work for Wall Street firms.<\/p>\n

Also last week, The New York Times<\/em> covered the influx of Wall Street firms into Silicon Valley in the wake of last year\u2019s IPOs and in anticipation of this year\u2019s IPOs. The firms are expanding their offices here, sending employees known as wealth managers on the hunt for new clients.<\/p>\n

One of their sales tactics \u2013 along with the traditional tickets to ball games and trips to Disney World \u2013 are sales pitches that condition tech workers to believe that investment decisions are beyond their abilities.<\/p>\n

Here\u2019s what Evelyn Rusli and Ben Protess wrote in In Silicon Valley, the Ripe Scent of New Money<\/a>.<\/p>\n