{"id":3260,"date":"2012-08-23T07:42:14","date_gmt":"2012-08-23T14:42:14","guid":{"rendered":"http:\/\/canary.kcprod.info/blog\/?p=3260"},"modified":"2022-01-11T17:12:45","modified_gmt":"2022-01-12T01:12:45","slug":"pros-cons-private-banker","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/pros-cons-private-banker\/","title":{"rendered":"Do You Need A Private Banker?"},"content":{"rendered":"<p>A private banker is someone who focuses on the needs of wealthier-than-average clients. Sometimes, he or she works for a private bank within a large institution, like J.P. Morgan Private Banking; other times, his or her institution is a private bank, like U.S. Trust.<\/p>\n<p>Private banks used to exclusively serve people with millions of dollars in assets, but in recent years they\u2019ve been broadening their services to appeal to people with somewhat less. After your company has an IPO or is acquired, you might get a knock on the door from a private banker.<\/p>\n<p>In this recent <a title=\"Quora: Andy Rachleff on private bankers\" href=\"http:\/\/www.quora.com\/Personal-Finance\/What-are-the-pros-and-cons-of-having-a-private-banker-through-Citi-JB-etc\" target=\"_blank\" rel=\"noopener\">Quora post<\/a>, Wealthfront CEO Andy Rachleff listed the pros and cons of using a private banker.<\/p>\n<p>Among the pros: A private banker might provide financial planning advice, hold your hand through turbulent markets and introduce you to tax advisors and estate planners.<a href=\"http:\/\/www.quora.com\/Andy-Rachleff\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3262 alignright\" title=\"Andy Rachleff on Quora\" src=\"https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2012\/08\/thumbnail.aspx_1.jpeg\" alt=\"Andy Rachleff on Quora\" width=\"160\" height=\"160\" \/><\/a><\/p>\n<p>Among the cons: Private bankers don\u2019t have access to the very best alternative asset managers, like hedge funds. And, their fees are typically very high: 1-1.5% of assets under management.<\/p>\n<p>\u201cIn the end you trade off fees for handholding service. There&#8217;s no right answer. You just need to determine what&#8217;s right for you,\u201d Andy wrote.<\/p>\n<h2>Why DIYers Tend Not To Like Modern Portfolio Theory<\/h2>\n<p>Interested in more on Quora? Check out Andy\u2019s\u00a0<a title=\"Quora: Andy Rachleff on Modern Portfolio Theory \" href=\"http:\/\/www.quora.com\/Investing\/Is-the-Modern-Portfolio-Theory-dead\" target=\"_blank\" rel=\"noopener\">Quora post<\/a> on why do-it-yourself investors tend to talk down Modern Portfolio Theory, in response to <a title=\"TechCrunch on Modern Portfolio Theory\" href=\"http:\/\/techcrunch.com\/2012\/08\/11\/is-modern-portfolio-theory-dead-come-on\/\" target=\"_blank\" rel=\"noopener\">TechCrunch&#8217;s recent article<\/a> on the subject.<\/p>\n<p>\u201cThe critics of MPT \u2026 tend to be do-it-yourself investors who believe they have the skill to outperform the market.\u00a0 It\u2019s classic cognitive dissonance. They can\u2019t accept the basic tenets of Modern Portfolio Theory. If they did, they\u2019d be forced to recognize outperforming the market probably is impossible over the long run \u2013 and that even in the short run, only the very best investors can outperform.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A private banker is someone who focuses on the needs of wealthier-than-average clients. Sometimes, he or she works for a private bank within a large institution, like J.P. Morgan Private Banking; other times, his or her institution is a private bank, like U.S. Trust. Private banks used to exclusively serve people with millions of dollars [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":7253,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1282,1278],"tags":[1290,1296,1287,1364],"coauthors":[1276],"class_list":["post-3260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","category-planning","tag-andy-rachleff","tag-fees","tag-financial-advisors","tag-modern-portfolio-theory"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do You Need A Private Banker? | Wealthfront<\/title>\n<meta name=\"description\" content=\"Andy Rachleff discusses the pros and cons of hiring a private banker and why DIY investors tend to dislike Modern Portfolio Theory on Quora.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/canary.kcprod.info/blog\/pros-cons-private-banker\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do You Need A Private Banker? | Wealthfront\" \/>\n<meta property=\"og:description\" content=\"Andy Rachleff discusses the pros and cons of hiring a private banker and why DIY investors tend to dislike Modern Portfolio Theory on Quora.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/canary.kcprod.info/blog\/pros-cons-private-banker\/\" \/>\n<meta property=\"og:site_name\" content=\"Wealthfront Blog\" \/>\n<meta property=\"article:published_time\" content=\"2012-08-23T14:42:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-12T01:12:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/canary.kcprod.info/blog\/wp-content\/uploads\/2017\/01\/family04.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1472\" \/>\n\t<meta property=\"og:image:height\" content=\"530\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elizabeth MacBride\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Wealthfront\" \/>\n<meta name=\"twitter:site\" content=\"@Wealthfront\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elizabeth MacBride\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/canary.kcprod.info/blog\/pros-cons-private-banker\/\",\"url\":\"https:\/\/canary.kcprod.info/blog\/pros-cons-private-banker\/\",\"name\":\"Do You Need A Private Banker? 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