When investors need more personalized advice, they will be able to access a personal advisor and have the option of moving to a more traditional advisory relationship as their accounts grow. Advisors as well as the broker-dealer will be able to stay in contact with $ymbil investors through social media, web and e-mail messaging so that clients will have access to market insights and outlooks.
Blancato envisions expanded capabilities as Ladenburg Thalmann builds out $ymbil.
“This is just version 1.0. We have different versions on the way,” Blancato says. “We’re already discussing adding in a basic planning component, and when the client wants more advanced planning, they’ll be able to go back to the referring advisor.”
Ladenburg Thalmann will charge $ymbil's end users a 100 basis point fee on top of any ETF fees they incur, which Blancato says will come out to total expenses of 1.2 percent to 1.3 percent for most investors.
Ladenburg’s affiliates can access $ymbil through the company’s proprietary wealth management software suite.
“So far, the response from our advisors has been wonderful,” Blancato says. “Advisors have been frustrated by the idea that they might be somehow replaced by a computer. They’re hearing discussions on whether the industry has to completely revamp their service model. Yet they recognize the benefit of technology and the efficiency this can bring to their practice.”