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But at least one bit of Web-revolutionary rhetoric, the hype surrounding myCFO Inc., has fallen a bit short. Launched last year, this Web site, it turns out, doesn't really let the power of the Internet loose on financial planning for the wealthy after all. The site almost (but not quite) invites that most vicious of Web putdowns -- "it's just brochureware." That's because myCFO, the latest brainchild of Netscape Communications founder James Clark, executes most of its financial planning and related services face-to-face or over the phone -- pretty much the way financial planning has always been served up. And on reflection, at least for this clientele, maybe that's still the right way to do these sensitive jobs. The Web just doesn't lend itself to do-it-yourself financial planning for the very rich. If you've got a net worth of $250,000, it's fairly easy to make your own stock purchases and plan your retirement using a self-service site such as E*Trade or Fidelity. Cisco will either go up or it won't. It's a different ball game if your net worth is, say, $50 million and you're creating and administering family foundations and hammering out trusts for the grandkids. With a nod to E*Trade's ads, when you really do have money out the yazoo, you often need handholding beyond what the Web alone provides, at least when you're doing something more complex than buying a Rolex. NO E-LIBRARY. Even so, the company is off to a respectable start: MyCFO Inc. has attracted 240 clients with an average net worth of $150 million. That adds up to $34.5 billion. The cost of hiring a personal chief financial officer through myCFO depends on the complexity of the client's finances, but the minimum annual charge is $25,000. In return, myCFO will handle everything from a zillionaire's bills to his taxes to her estate planning. If you can't afford the fee, you probably don't have enough wealth to need the service anyway. Originally named "myCFO.com," the company changed its name when it realized the original moniker made it sound as though it would offer all its services online. That was never the plan. On the Web, myCFO clients see listings of the bills being paid on their behalf -- and not much else. The company is developing a system to show clients complete and updated summaries of their estates, including liquid and nonliquid assets. That's progress, but it's still no revolution. Indeed, myCFO isn't taking advantage of the Web -- even within the limited scope of its cyber plans. It lets clients check individual stock quotes and market summaries, but those who have a little time on their hands might also want access to a self-service library of information about, say, tax and inheritance laws. At a minimum, you'd think a site like this would have such a library to let clients prepare for all those face-to-face meetings. That way they could immerse themselves in details as much or as little as they wanted. The company says it's currently considering an online newsletter to keep clients up-to-date on those kinds of issues. Other than its catchy name, myCFO doesn't seem terribly different from other firms that offer financial planning for wealthy people. Charles Schwab Corp.'s U.S. Trust unit, for example, offers similar services. So do the big accounting firms and countless private attorneys and estate planners. It's curious that the company doesn't do more to differentiate itself by using the Silicon Valley credibility and Web savvy of its founder. Still, if you have enough dough, myCFO is worth checking out -- while surfing the Web for the latest high-tech toys and planning your next ski trip. Lee covers financial services from Business Week's Silicon Valley bureau |
