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25iQuiz: Schwab paid $1.8 billion for 1 million accounts containing $90 billion in client assets ($90,000 per account on average). Schwab paid 1,800 per account. How many months to payback?
barrons.com/amp/articles/w…
barrons.com/amp/articles/w…
~75% of clients are self-directed with the rest in advisory relationships.
Why sell? "fierce competition and consumer expectations to have low or no fees on a wide range of products."
Why buy? "captive source of customers to potentially cross-sell into." google.com/amp/s/www.expr…
Why sell? "fierce competition and consumer expectations to have low or no fees on a wide range of products."
Why buy? "captive source of customers to potentially cross-sell into." google.com/amp/s/www.expr…
"The brokerage assets throw off 30 basis points annually. The managed accounts are exceptionally lucrative with average fees of 100 basis points -- substantially higher than what Schwab itself charges." riabiz.com/a/2019/7/25/af… USAA also gets additional fees for each referral.
What gross margin did you use in calculating your answer? Clue: "global public asset manager 2018 operating margins have fallen to 29%" institutionalinvestor.com/article/b1d0tw…
Is 50% a reasonable gross margin assumption? blog.wealthfront.com/personal-finan…
What's your churn assumption? Will ARPU drop?
Is 50% a reasonable gross margin assumption? blog.wealthfront.com/personal-finan…
What's your churn assumption? Will ARPU drop?
