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  • Bob Brooks

The Average Investor is Losing Out - The Assault on the Middle Class

There is no doubt that in 2020 the rich got richer, those who struggled financially are struggling more, and the middle class is starting to vanish. Corporate America, amongst the backdrop of the Pandemic, will be paying out some of the biggest bonuses in years to its executives.

The assault on the middle class now continues in the financial services business, where big banks and brokerage companies are encouraging "smaller" accounts to go find a home elsewhere. There are many of the big brokerage companies going in this direction. However, we will focus on the one bank that historically hasn't stood by their clients – Wells Fargo.

Wells, in an effort to focus on the wealthier clients, has either implemented or is talking about implementing the following:

Brokers are less interested if they invest clients' money in accounts under $250,000. That threshold was $100,000 and now increased to $250,000. Now there is less incentive to take on a client who has under $250,000 and more incentive to go after the larger accounts. 

If your account is less than $250,000, your questions are routed to a call center rather than your adviser. This was a concern of many advisers in smaller markets.

IF you don't keep a minimum of $500,000 in accounts, you will be charged an annual maintenance fee of $300.00. 

The average investor is being told to go away from these more prominent brokerage offices. As a result, smart advisers are moving their business to other brokerage offices – which I say good for them.

Since when is a client's $250,000 not a lot of money? Unfortunately, due to regulatory issues and profitability concerns, this is where the industry is moving. However, the Registered Investment Adviser office still takes care of clients of every size because we don't have big companies telling us how to treat our clients. Prudent Money is a Registered Investment Adviser. We meet clients where they are, not where we think they should be. 

IF you are looking for a new home or simply more information, email Amanda at

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