Investment advisors need technology to grow and better manage their practices. However, many advisors are reluctant to take on new technology due to the cost and time involved as well as the uncertainty of future benefits. Even if an advisor is willing to consider new technology, the quantity of tools and solutions offered can cause decision-making to be difficult and, seemingly, not worth the effort.
For the majority of investment advisors, rebalancing is the most time-consuming and error-prone part of the business. It is repetitive and requires consideration of multiple variables at once. When time is precious, why haven’t advisors jumped to automate rebalancing? The answer may be simple: cost and complexity.
Total Rebalance Expert® (TRX) has sought to solve the rebalancing dilemma for advisors as the most tax efficient and easy to use auto-rebalancing software. Based on a survey of and interviews with current users, TRX has recently compiled a White Paper quantifying and illustrating the benefits of using its rebalancing software. (To download your free copy, go to http://www.trxpert.com/roti/ls_contact.php/.)
TRX users identified the following benefits:
Greater responsiveness to client needs, market changes
Greater tax efficiency
Increased client satisfaction
Increased client base and revenue
Simply quantifying the dollar benefits of TRX, the average user experienced total average annual benefits of $587,500 – or over 46 times the cost of the software! This number is composed of annual labor savings of $62,500 and increased revenue from new accounts of $525,000.
Advisors had great things to say about TRX:
According to Dave O’Brien of O’Brien Financial Planning, “Of our software suite, the one application that has had the biggest impact on our approach has been TRX.” O’Brien added, “As a result, we’re handily bringing in assets … and it is a true delighter for clients to know that we are acting in a fiduciary capacity in lowering their costs.”
Ryan Callan, Chief Operating Officer of Callan Capital, one of Financial Advisor magazine’s Top 50-Fastest Growing Firmsstates, “At this point [TRX] is indispensable. I’m able to come in and take a quick look at our households and see what needs to be done. It takes about five minutes.”
Finally, using a unique analogy, Tim Armstrong, Wealth Coach at FirstWave Financial, commented “This is how I look at it. Imagine a little drip coming out of a faucet. That is how we were rebalancing before. With TRX, we now have a fire hose! We have to control it, but the power is amazing.”