Clients Want the Everything-Store Experience

Stores like Walmart, Costco and Sam’s Club have thrived by offering everything to everyone, which begs the question: Why go to two separate places for your steaks and your winter tires?

The financial industry and clients have been trying to replicate that one-stop shopping experience for portfolios. Advised households tend to use multiple shops, having a full service account with their wealth manager, as well as a self-directed brokerage account at another firm. However, as investible assets increase, advised households are more likely to use only one store than unadvised homes, according to new data from consultancy Hearts & Wallets. This year, 25% of advised households with $1 million to $10 million have used one store vs. 18% of unadvised households. 

For roughly the past decade, the percentage of advised households using one shop was trending down, but it spiked this year, surpassing rates not seen since 2013. More and more, clients are looking to consolidate their assets and services under one roof, which can be quite a tall task for firms. “Having only one firm is intriguing,” said Laura Varas, Hearts & Wallets’ CEO. “That means the firm must meet all the household’s needs for saving, retirement, investing, etc.”

Mo Firms, Mo Problems

Why are so many clients moving their assets to one firm? Part of it can be chalked up to consolidation within the industry itself. But for plenty of clients, it’s just easier. More firms mean more statements, more log-ins and more coordination between accounts unless an advisor takes on that role, Varos told Advisor Upside. Working with a handful of firms can become particularly complex when doing taxes with multiple 1099s and trying to calculate required minimum withdrawals from various 401(k)s and IRAs, she added.

It’s not just advising clients looking to simplify managing their assets, though. Whether it’s their banking, retirement savings, investing accounts, or insurance policies, more American consumers want it all in one place: 

• Between 2024 and 2025, the percentage of households with $1 million to $5 million in investible assets held at just one firm has doubled from 11% to 22%. Meanwhile, households with more than $5 million in assets using a single firm jumped from 9% to 22%, per the data.
• Year over year, the number of households with less than $10 million in assets working with one firm has jumped from 45.2 million to 56.7 million. As a result, those one-shop households now control $14.6 trillion, more than double the $6.8 trillion they held in 2024.

A Second Trip. However, there are drawbacks to one-stop shopping as it can limit clients’ access to certain services and investing products. Someone may really like the advice they get from their wealth manager, but still want to keep their own hand in the game by having a DIY brokerage account. “For some, this self-service relationship can be as much as half of their portfolios,” Varos said.