Bank of America’s Wealth Management
Bank of America’s Wealth Management
Bank of America’s Wealth-Management Business Bucks Trend in Volatile Quarter; BofA’s wealth-management revenue rose 7% in the fourth quarter, while wild stock-market swings at the end of 2018 hurt rivals
The article describes wealth management business in the wall street in regards to the rise and existing rivals during the wild fourth quarter, the company under watch in the article is the Bank of America Corporation. Further, it is noted that the parent company of Merrill Lynch and the U.S Trust wealth management received an increase in revenue of about 7%, which is equivalent to 4.99 billion from a year earlier. Substantially this is one of the examples experienced as the violence stock marketing swings during 2018 (Beilfuss, 2019).
The situation also affected other brokerage firms where they diminished the account balances by generating lower fees for personal financial advice. It is also noted that during this time, most of the existing brokerage firms have started to shift their customers to fee-based accounts to obtain commissions. This is because the fortunes of these firms are considered to be tied closely with the moves of the market (Beilfuss, 2019). The charge for these services consists of about 1 to 25 of the value of customers’ assets. The charging of fees is said to be critical in realizing reliable revenue since the commissions often tend to be sporadic, and regulatory efforts within recent years have been preferred.
One of the real-life situations which I have experience from the article is based on the fact that my friend had been a victim in this article. Substantially, this took place when my friend a group decided to save money for that they could invest in the future, specifically in the real estate sector. In the beginning, their mission was to keep before they begin implementing their goals initially. However, little did they complete their project did they realize that the mist of these wealth management businesses had established such rules in their system (Beilfuss, 2019). Their total investment for management was one million in return, which would mean a fee of $20000 to be paid per year.
Regarding this initiative of my friend, I believed the need for such people to have a background check and address the issue of wealth management before making critical decisions for their resources. Notably, the article address issues involved in the breakage of wealth management, and this may require consultations to manage the wealth of people.
My field of study is mainly in business management, and it has various impacts on the article. Business management is primarily entailing the act of allocating resources to assist in accomplishing the desired goals as well as the objectives to effectively and efficiently achieve the objectives of an organization. The main focus is to ensure that there is proper planning, staffing organizing controlling leading an organization (Beilfuss, 2019). Therefore, it relates to this article news in that it provides a perspective of managing the asses that are tied with the current and future financial resources of an individual or entity, as illustrated in the article. Similarly, this also related to the article in that it can provide an overview assisting the clients in understanding how they can achieve their goals through planning their resources with the organization. The benefit of this is to minimize the occurrence of risks involved.
There are various factors which I would like to understand in regards to the article. The first one consists of the need to determine the role and importance of wealth management for an individual or group in the long run. The aim concern under this element is to learn how it is related to the transfer of wealth from one person to another, factors to consider to keep or maintain wealth. Moreover, in regards to the role of wealth management, what would be the goals that can be expected from a client based on their decision to invest(Beilfuss, 2019). The other issue which I would also like to understand from the article is that what causes the fluctuations and differences in the percentage profits of different companies in the industry. Substantially, this is because there is either an increased rate in profitability or a decrease. Lastly, the question to ask from the article is the understanding of what factors brokerage firms can address to maintain their income in the competitive market.
Beilfuss, Lisa (2019, Jan 17), Bank of America’s Wealth-Management Business Bucks Trend in Volatile Quarter; BofA’s wealth-management revenue rose 7% in the fourth quarter, while wild stock-market swings at the end of 2018 hurt rivals Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]