Although this column is generally not product-oriented, because I couldn’t get to all of the audience questions during the webinar, I am following up here to provide the answers.*
Q: For those of us who are currently using another application… what would be the 3 primary reasons to consider a change to TRX?
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A: I would say that the 3 primary reasons would be:
1. Ease of use – TRX is specifically designed for PortfolioCenter® users who follow Modern Portfolio Theory (asset allocation) and implement with primarily mutual funds and ETFs. If this describes your firm, then TRX offers easy implementation and intuitive functionality. Our Analysis Expert screen (patent pending) gives you an instant snapshot of all of your clients so that you can immediately identify which portfolios require transactions and which don’t!
2. Tax functionality – No other program provides the complete tax functionality of TRX, which includes tax lot accounting, tax loss harvesting, short-term gain avoidance, wash sale avoidance, location optimization, Roth conversion, and capital gain distribution avoidance. TRX also quantifies the tax savings in client-friendly reports!
3. Price – TRX is priced to be affordable for firms of any size. We also include unlimited support at no extra charge.
Q: What is the extent of training and support? Is there a cost for ongoing support, etc.?
A: The TRX installation fee covers assistance with PortfolioCenter set-up, pre-installation data analyses, installation (either on your server or through a third party provider), training and unlimited support. The annual license fee includes unlimited support as well. Finally, TRX is improved and enhanced (based on users’ requests) on an ongoing basis. All upgrades and new versions are included at no extra charge.
Q: What are some HONEST drawbacks, shortcomings of TRX vs. other popular applications?
A: The primary drawbacks of TRX compared to other rebalancing applications have to do with the appropriateness of TRX to a particular advisory firm. To begin with, at this time, TRX only integrates with PortfolioCenter. Thus, if your firm uses another portfolio accounting system, TRX won’t work for you. TRX is also not designed for advisors who do not adhere to Modern Portfolio theory and/or do not utilize primarily mutual funds and ETFs. In other words, TRX is not right for those advisors who actively manage portfolios, those who build portfolios of individual stocks or firms that invest in alternative investments (not held through a mutual fund or ETF). Finally, TRX works best for firms that manage portfolios at the household level (not account by account) and that seek add value through tax management. Thus, if your firm manages at the account level and is not concerned with tax management, TRX might not be a good match.
Q: Does TRX support “averaging in” to a model?
A: Yes, TRX can handle gradually moving from one model to another. Additionally, TRX supports dollar cost averaging – either into or out of an investment portfolio.
Q: Can the software allow for one-off positions in individual client accounts? In other words, if a client were to hold an individual stock that was unique to just that client, can the system accommodate this? Or would the client be rebalanced into a standard model?
A: Yes, TRX allows for all types of one-off situations including legacy positions, closed mutual funds, separately managed accounts, restricted accounts (like 401(k)s) and set-aside cash. For legacy positions, such as an individual stock, that the client wants to continue to hold, TRX gives the advisor the option of excluding the stock from consideration in the portfolio or “managing around” the stock. In this case, TRX will consider the stock as part of the portfolio, but will not sell the stock (or buy more of it).
If I haven’t answered your question or if you have other questions, please be sure to let me know. I am always glad to provide information on TRX! Also, please check out our website at www.trxpert.com
I want to thank Andy Gluck for giving me the opportunity to present a webinar on Total Rebalance Expert. And, I want to thank those of you who participated.
* This column was written by Sheryl Rowling solely in her capacity as CEO of Total Rebalance Expert.