Executive Summary
Starting a financial planning firm in today's world can be complex, because of the myriad of technology that's necessary to operate the business in an efficient (and regulator-compliant!) manner. While you can get a compliance consultant to help with some of the legal requirements to getting started, it's often up to you as the advisor to make the decisions about what technology - including software and systems - you will use to run the practice.
In this guest post, Gen Y advisor Alan Moore shares the comprehensive list of every software package and technology tool he's using to operate his new RIA, along with why he chose it and what it costs. It's a fascinating look at what a younger technology-inclined advisor sees and expects of today's technology marketplace for advisors.
If you're a newer advisor that recently started your own practice, or are thinking about going out on your own, this should be helpful to you as a starting point for solutions to consider and some ideas about what's important to focus on. And even if you're an existing advisor with an established practice, you may still be inspired to make a few changes or additions to your own suite of tools!
Fresh out of college I went to work for an established financial planning firm that had $150+ million AUM. My first project was to begin researching new technologies, and make recommendations for conversions to be made in the future. On top of becoming knowledgeable about technology available for financial services, I learned just how expensive it can be to convert from one system to another.
When I started Serenity Financial Consulting in the summer of 2012 (less than 1 year ago!) I was able to start from a clean slate - no $10,000 conversions from dbCams, Junxure, or Goldmine. I certainly have had to balance cost, as the "ideal" technology out there was simply out of reach (e.g., Tamarac’s Advisor suite starts at $22k/year), but I knew I was building a firm for the long haul and needed the tools in place to make it happen. So, here is a breakdown of the technology I’m currently using, how much it costs, how it all works together, and technology I’m evaluating for the future.
Tech I’m Using Today
Note: * after cost indicates a discount that you may or may not qualify for
Financial Planning Software:
MoneyGuidePro - $995*/year
MoneyGuidePro (smartly) offers a free version to universities, so I actually learned how to use MGP while in college. I used it at other firms in the past, so I naturally subscribed when I went out on my own. I like goals-based software over cash-flow based, so it was right up my alley. Excellent customer service and great integrations help make it a fantastic program.
Risk Profiling:
FinaMetrica - $495*/year
I use FinaMetrica to give an objective view of a client’s tolerance for risk. It has a great integration with MoneyGuidePro, so clients are able to fill out the survey through the MGP client portal.
Performance Reporting:
BlueLeaf - $117.50*/month
When evaluating performance reporting software, I looked for one that had low upfront costs, the necessary integrations, and gave clients access to their own data. I don’t believe I should be the holder of investment data, so clients have real-time access to their performance reports. Instead of calling me to see how a recent event affected their portfolio, they can just check it out for themselves. BlueLeaf also allows clients to give me compliant access to their held-away assets, and even bank accounts. So when a client requests $10,000 cash from their IRA, I can see it hit their checking account and let them know it is there. Finally, Blueleaf has eliminated the need for quarterly reporting, saving me weeks of time per year, and added years to my life avoiding the stress of the process. You can even do your billing through BlueLeaf if you want.
Client Report Delivery & File Sharing:
DropBox – Free
BlueLeaf uses DropBox to share reports with clients. So, I set up a shared DropBox folder with each client, and BlueLeaf reports show up for the client automatically. I also have a shared folder with the attorneys and accountants I frequently work with, and they drop documents into the folder as they are generated. Saves a lot of time chasing down documents.
Rebalancing:
TradeWarrior - $350*/month
TradeWarrior is working on an integration with BlueLeaf, which will allow for seamless data transfer between the systems. Having TradeWarrior allows me to rebalance all client accounts in minutes, which is good because I do a rebalance check once per week to see if clients are out of our target ranges. TradeWarrior generates trade files for each custodian, which streamlines the trading process. I am anxiously awaiting their move to the cloud (currently their program is hosted on their server, and I use a log-in to remotely access it) next year which will eliminate the need for uploading trade files, and for constant review of portfolios, since you can just set alerts to let you know when a client is out of balance, instead of having to run reports.
Account Trading:
NetX360 - Free
NetX360 is the trading platform used by Shareholders Service Group, my custodian. Basically I just upload the trade files generated by TradeWarrior and voila!
Data Gathering:
PreciseFP - $179.55*/year
For anyone still manually entering client data, you really need to check out this software. I have clients enter all of their own data, which has practically eliminated all errors. I usually have to spend 10-20 minutes per client cleaning up the data, particularly in the assets section because clients tend to not input ticker symbols. Overall, it saves me an immense amount of time.
Client Relationship Management (CRM):
Solve360 - $39/month
Have you ever met an advisor that liked their CRM? Me neither… so I got one that would do the job in the short run. I hate paying upfront costs for software, so I stayed away from SalesForce which is what I really wanted. Solve360 has a very tight integration with Google Apps (see next), so each client contact record has all e-mails with the client, notes, tasks, and such. There is also a Project Blog section that allows for task lists and workflows, which I have found to work really well. It doesn’t integrate with any financial planning software, but I can say from my experience using a very popular financial planning CRM that integrates with practically every system, integrations are irrelevant if the product sucks.
E-mail:
Google Apps (Gmail) - $5/month
This was the first software I chose. I wasn’t going to use Outlook and try to host it on an exchange server, and you can’t beat the price and functionality of Google.
Document Management:
Google Apps (Drive) – Included in Gmail pricing
I have all of my files in Google Drive right now, which acts a lot like DropBox. I have files on my desktop so that I can access when not online, and any changes are synced to the cloud, and then updates the files that others (such as my assistant) have shared access to.
Calendar:
Google Apps (Calendar) - Included in Gmail pricing
Can’t say much about a calendar system except that it works.
Online Meeting Scheduling:
Bookeo - $14.95/month
This piece of software is my pride and joy, and probably the number one way I attract clients I want to work with, and filter out those I don’t. Bookeo syncs with my Google Calendar, and allows prospective clients to book a "Get Acquainted" meeting, and existing clients to book review meetings, straight from my website. I have never heard from 75% of my Get Acquainted meetings before I actually meet with them – the first (and only) time I hear from them is the e-mail from Bookeo confirming their meeting. You can request as much information as you need, but I only ask for name, address, phone, and e-mail. Plus, it integrates with MailChimp so they can sign up for my newsletter while booking a meeting. For client review meetings, I can simply e-mail out a link to the scheduling system, and they can book a meeting at their convenience. No more playing phone tag, trying to book client meetings. Plus, it lowers the barrier of entry to prospective clients, as they don’t even have to call to get on my calendar.
Electronic Document Signing:
EchoSign - $19.95/month
I am 100% paperless, so electronic contract signing is a must. I can e-mail client contracts, account opening and transfer forms, and anything else that needs a signature. Clients simply click the e-mailed link, and then sign using their mouse. It is SEC compliant, saves me reams of paper, and makes the process of getting documents signed much easier.
Newsletter Delivery:
MailChimp - $11/month
I love MailChimp for its simple interface. If you can’t code in HTML, you might want to hire a designer to help get it set up for the first time, but this is how I manage my newsletter without spending a lot of time on it.
Website Hosting:
WordPress & GoDaddy - $40/year
If your website isn’t hosted with WordPress, hire a new web designer. I hear advisors tell me all of the time “My web guy updates my website once per quarter.” If this is you, find a new web designer, and put your site on WordPress. Even the most technically challenged can update the text and images on their site on the fly. With some basic skills, you can even add new pages. There is no reason to have a static website, and if you do, you are losing clients.
Phone:
RingCentral - $114/month (3 office locations)
I have offices in Milwaukee, Wisconsin, and also Bozeman, Montana, and an assistant in Georgia. Finding a phone system that would allow for this was difficult, but doable. RingCentral allows me to have desktop phones that operate over the internet (VOIP), an app on my cell phone so I can make calls from my business number while out of the office, and more. It even allows clients to text my work number. Due to compliance, I can’t send texts yet, but hopefully that will change soon.
Ruby Receptionist - $229/month
I hate being tied to my office, and am always afraid I am missing phone calls. So, I hired Ruby to answer my phones, and they are amazing. I had a client e-mail me recently to say how impressed they were with my new receptionist. As a solo practitioner, it allows me to not worry about missing calls while in meetings, on the road, or just not in the mood to answer my phone. They even have an app so I can update Ruby on which phone number to call me at (ie. cell, office in Bozeman, office in Milwaukee), or tell them to just take a message.
E-mail Archiving:
Google Vault - $5/month
I started out with Smarsh, and I have to say they are the worst company I have ever dealt with. Fortunately, Google recently released Vault which is a compliant e-mail archiving system. It is super cheap (Smarsh was $40/month) and integrates seamlessly with my email.
Social Media & Website Archiving:
Arkovi (Now RegEd) - $15*/month
Arkovi does a great job of capturing every tweet, like, share, and change to my website. This is a program I hardly remember is there until the regulators show up.
Google Apps Backup:
Spanning (Includes e-mail, calendar, documents, & contacts) - $20/year
Spanning integrates with Google Apps, and backs up all of my data on a daily basis onto Amazon’s servers. If I accidentally overwrite a template file, or delete something I shouldn’t have, I can very easily go in and restore the data. If someone hacked my account and deleted everything, it would take about 5 minutes to have it all back.
Social Media Management:
HootSuite - Free
I use Twitter, LinkedIn, Facebook, Google+, and YouTube in my business, so having a program to help manage that is great. Hootsuite is free, and gets the job done.
Accounting & Payroll:
QuickBooks Online - $50/month (includes payroll for out of state employee)
QuickBooks Online is a very easy-to-use accounting program. You can easily invoice clients, track expenses, and do payroll through the system. Plus, 99.9% of accountants know how to use it, so it is easy to give them access come tax time. It also integrated with WellsFargo (business bank) so expenses are automatically uploaded to QB. And after nearly losing my mind trying to do payroll the first time, it takes about 4 clicks per pay period to direct deposit checks for me and my assistant. Best of all, they fill out and file all of the ridiculous amounts of paperwork needed by the state and IRS.
Virtual Meetings:
Skype - Free
About 50% of my clients don’t live near an office, and even some local clients prefer not to deal with traffic, getting a baby sitter, and such. So, virtual meetings are a must. I recommend setting up a personal account (not a business account) since you can screen share for free from it. It isn’t the most stable program, but it is working fine for now.
Credit Card Processing:
Square – Free (2.75% per swipe)
I love being able to take client deposits while standing in my office. I mostly work with young professionals, some of which don’t even have checkbooks, and most of which don’t carry it with them. We can easily run their debit/credit card through the free device plugged into my phone/tablet. Yes, I do lose 2.75%, but it is well worth it. I can even take their card number over the phone and run it without them being present, however this costs a little more.
Watch Internet For Media Mentions:
Google Alerts - Free
I have alerts set up for my name, company name, and more, to be sure I don’t miss any mentions in the media. I frequently talk to reporters, and have no way to keep track of being quoted. Some reporters will let you know they quoted you, others don’t, so this is a must-have system. Also, I set up alerts for high-profile clients so I can send a “Hey, saw you were quoted in the NYT” e-mail when it happens.
Website Traffic Information:
Google Analytics – Free
There is no sense in having a website if you don’t know how people are using it. Google Analytics tracks every person that visits your site, so you can see where traffic is coming from. Are people clicking through from your e-mail newsletter? Getting hits from NAPFA/FPA/CFP? What about social media? You can also see how people flow through your site, so you know what pages they drop off of, view the most often, and the ones that never get looked at.
Password Management:
LastPass - Free
LastPass allows you to save all of your username and password in their system, and only have to remember one password (I recommend using a pass-phrase). I have 270 user names and passwords saved in LastPass, and the only way I could otherwise remember them all is to have the same password for every site. This is a horrible idea! LastPass will auto-generate passwords like "IkNo7EjuXY7V" which is going to be much tougher to crack than your e-mail password. And yes, you can back up your data so if LastPass goes down, you still have all your passwords.
How It All (Sort-of) Works Together
Total Costs
Monthly Subscriptions: $970.40
Annual Subscriptions: $1729.55
Total Annual Cost: $13,374.35
An estimate of pre-discounted services is: $15,375. Wondering how I got discounts worth $2,000? Well, here is a quick breakdown:
MoneyGuidePro: Membership in the Garrett Planning Network, or using Shareholder Service Group as your custodian, will get you this discount. They have preferred pricing with a lot of organizations and custodians, so just be sure to ask.
FinaMetrica: As a MoneyGuidePro subscriber, you can get FinaMetrica for 50% off.
BlueLeaf: They offer a 5% discount for putting a link back to their site on your webpage, 2 months free if you pay for the year upfront, and another 2 months free if a subscriber refers you to them. Want 2 months free? Just let me know! 🙂
TradeWarrior: I was willing to be a beta tester for the integration between TradeWarrior and BlueLeaf, which earned me a bit of a discount.
PreciseFP & Arkovi: Both have preferred pricing for members of the Garrett Planning Network.
Tech I’m Evaluating
New CRM:
XLR8
While I am good with Solve360, I would love to move to something that integrates with Google Apps and all my financial planning systems. I absolutely hated Redtail when I did a trial (plus it can’t work with Google), so that leaves SalesForce. XLR8 is basically a customized version of Salesforce for advisors. The only thing holding me back is the $75/month/user fee and upfront set-up costs.
Financial Planning Software:
InStream
If InStream integrated well with my other systems, and had a FinaMetrica discount, I probably would have moved to it already. It is a free financial planning software that is much more proactive than current systems available, and represents the future of financial planning software.
Form Filling Software:
Laser App Anywhere
This will allow for easier form filling, plus the Anywhere version is cloud based.
Virtual Meetings:
Google Hangouts and GoToMeeting
Skype isn’t stable enough for my liking, so I plan to test Hangouts, and it if doesn’t work well enough, then I will probably just pay the $50/month for GoToMeeting.
Credit Card Processing:
Authorize.net and Intuit
I would like for clients to be able to pay my retainer fees monthly out of their checking account, so these are on my list to evaluate as options.
Accounting/Payroll System:
Wave Accounting
I cringe when I have to pay the QuickBooks monthly fee, and I have heard good things about Wave so I plan to try it out.
Data Gathering:
WuFoo Form Builder
While I like PreciseFP, it doesn’t integrate with my CRM (or SalesForce if I move to it), and really isn’t all that customizable. So, I would like to find a system that allows for more flexibility, and plan to see if WuFoo is the answer.
In closing, a quick story
I started my firm using a laptop I had from college. About 3 months in, it crashed. In most firms, this would have literally been the end of their world for weeks or even months – restoring data from off-site servers (which doesn’t happen as easily are you are led to believe), or they might have simply lost all of their data. I worked for a firm that backed up their data quarterly, so if their server went down, they were in big trouble, as they could have lost 3 months’ worth of work. I went to BestBuy, bought a new computer, and was up and running in less than 1 hour as if nothing had happened (It only took an hour because it had Windows 8 on it, which might be Microsoft’s worst invention).
I have 1 rule when it comes to technology – nothing installed on my computer. Everything has to be cloud based, or running on the software provider’s server. I don’t have the money for a server, and I trust my data to Google who has armed guards protecting their systems. And if you think “Oh but someone could hack Google” you are right… and they would have to get past the best system protections in the world… on the other hand, a 12-year old could probably hack the server sitting in your office.
I am by no means utilizing technology to the best of my ability, but I am always looking to try new things. I figure if I don’t replace one of my technologies every 3 months, I am probably falling behind. Plus, this helps spread out the costs because the longer you wait, the more expensive a conversion will be.
I would love to hear any comments, questions, or snide remarks, regarding this post (which ended up being much longer than expected)!
This was a great overview of an entire practice’s technology. Thank you for taking the time to put it together. And it has potentially solved one of my *personal* technology problems of backing my Google data, which is to say, My Entire Life.
Great rundown of advisor tech tools. Alan, good for you to have put so much thought into this!
Thank you for a great list of software.
While taking a look at the InStream demo, the Features page indicates that this service would cost advisors nothing (it’s free). However, the cost seems to be covered by 3rd party vendors, such as life insurance companies, with the understanding they will receive sales leads from the financial plan the advisor generates for their clients. If the advisor runs a life insurance analysis, three potential life insurance providers pop up on the right side of the screen. If this is the way InStream works, I’m guessing questions will come up regarding fiduciary responsibility. Also, what happens to InStream’s sustainability if the vendors don’t realize sufficient commissions from failure to convert lead generation into sales through InStream? I think there is a lot of potential with this service, but I have concerns over the revenue model.
How did you become comfortable with the security of Dropbox and google docs for client data?
Roger, that is a great question. For Google, I use the two-factor authentication to help ensure no one accesses client data from my username/password. I also use randomly generated passwords that rotate via LastPass.
In terms of Google/DropBox getting hacked, they are much more secure than if I keep the data in my office sitting on a server, or if I put it on an encrypted server at the computer shop down the road (yes, they do exist).
Does this answer your question?
Alan, thanks for the rundown of your software set up. I teach our Personal Financial Planning Technology course at Texas Tech University and I am sharing the link to this blog with my students. Our alumni continually gives us feedback that as young advisors first entering the firm, it is assumed they are tech savvy (because they are young) so they, like you, are given the task of figuring out what software the firm should be using.
The question I have concerns Dropbox and Google Apps. Have you had any issues with the compliance department on the use of these softwares? And are you using the Packrat feature in Dropbox ($39/annually) to allow you unlimited recovery of deleted items? I ask because I have shared research folders with colleagues and when they decided to move the files on their computer to another folder, they deleted all the files in my shared folder. Luckily, I caught it within the normal 30-day recovery period included with your Dropbox account. But in your case, would you be able to find archived data two-years from now if you were audited and the files had been deleted by the clients?
Alan
Thank you very much for the run down on your software, especially the spanning one.
Cloud based technology is definitely the way to go. All you need is a laptop and a wifi connection and you are ready to go.
Hey Barry,
Since I only use DropBox for sharing of files back and forth, along with investment reports for clients, I don’t back up DropBox. If all the files in DB get deleted, it wouldn’t be a big deal. However, if I was using it for my main file storage, I would absolutely use the Packrat feature.
I use Google Drive for all of my file storage, and have it backed up for the reasons you have mentioned.
Also, I 100% agree that students should know and understand the latest technology, as it is expected of them. It is one of the greatest values they can give a firm fresh out of school. And to be honest, it helps solidify their place within the firm if they are bringing in all the new technology, because replacing the tech expert is very difficult.
Alan,
Great summary and descriptions of the tech you’re using. I completely agree with most of your points. Specifically, I think having a static website is inexcusable at this point. Its like going to a cocktail party and then standing in the corner with drink in hand. Sure you’re there, but are you really accomplishing anything?
anyway, i think you should take a look at eMoney for financial planning software. I’ve used it extensively and found it had some great depth (also their service department is A+)
Thanks again for the great share.
Best,
Andrew
Hi Alan,
Thank you so much for being generous with your time and knowledge in writing this post. It’s very valuable to me as I’m seriously considering starting my own firm (which is why I’m anonymous, hate to do that but can’t have my current employer find this online).
I have several questions and would be very appreciative of any replies.
1. You don’t have a document management system listed. Do you store documents in the standard Windows folder system, backed up online? If yes, how do you quickly access the documents you need? NetDocuments is $30 per month and I’m seriously considering using them.
2. I’ve read a lot about doing real time planning with clients in meetings, with the goal of more effective and efficient planning for both advisor and client. This is very attractive to me vs. the approach of requesting info, then creating scenarios and giving the client a bound plan that requires followup if edits are needed. Does MoneyGuidePro allow real time planning w clients? I use it right now but my firm doesn’t do the real time planning and I’d be uncomfortable trying it without further MGP training. Right now when I do What If scenarios, I feel like it often doesn’t correctly calculate everything and I have to be very careful that it accepted all my inputs. Would not be comfortable sitting with client and using MGP.
3. I really like the Bookeo idea to avoid back and forth with scheduling. You mentioned that frequently you have no contact with a prospect before your Get Acquainted meeting. That’s efficient on the one hand, and I’d love to do it that way, but with no prequalification, what % of initial meetings end up with prospects that weren’t appropriate for you to spend time meeting with?
4. Do you maintain your website yourself now, and did you set it up yourself? I’ve looked seriously at Advisor Websites and AdvisorFlex (miagd.com). I’m impressed with both of them but since cost is a big issue starting out, I’d love to avoid the cost for a professional firm to a. assist with design and b. do the hosting. For example, AdvisorFlex is $749 for a template website (I write the copy) and $54 per month for hosting. Again, I think these are great firms and would likely be worth the money, but would obviously love to avoid/reduce expense if possible.
5. It sounds like SSG accepts e-signatures of account paperwork then? I know TD does too. I’m not aware of any other custodians accepting e-signatures at the moment, are you? E-signature has to be a HUGE time-saver for you and your clients.
6. Blueleaf sounds great. Do you even need a separate portfolio management system then? I was considering Morningstar Office. A 1-user license for that is $6,500 per year.
Hey Anonymous,
1. I use the traditional file folder system within Google Drive for document management. I have looked at NetDocuments, but there are 2 issues. 1) The amount of storage is limited, so really could only store client files, with business/marketing/other files in another system, and 2) The documents can’t sync to your desktop. I like having the files accessible without internet access, or when wifi is unprotected, such as on a plane. A sales rep recently told me they will sell it with only 1 license (their website says a 2 user minimum) so be sure to press it and only pay for 1
2. I do Real Time Planning Sessions with clients and use MGP for it. I have them fill out their info using PreciseFP first, then have a 2 hour meeting… The most common topic is retirement planning. You need to be very comfortable with MGP, but I think it is easily doable.
3. I encourage you to use your website as a way to weed out prospective clients that are not a good fit. Your marketing should clear the way for the type of client that is your ideal fit. Out of the 40+ intro meetings I have had over the last year, only 2 felt like a “waste of time”. However, you never know when a tire kicker will refer a friend, so I am always happy to spend an hour with an interested client.
4. I manage my own site with the help of a designer. I strongly encourage you to stay away from companies that build template websites and sell them, because your site will look like 1000 other financial advisor websites. They also hold you captive, meaning you can’t leave them and take your site. Mine cost $1,500 total, and has easily returned that 10 fold in 1 year. Your website should be your #1 cost when setting up your business, because all of your new clients will come through your site at some point. It is very important… don’t skimp on it.
5. SSG does accept electronic signatures, as does TDA. It saves a ton of time, as I don’t have to mail documents to distance clients and print hundreds of pages of disclosures.
6. I do not think you need a separate portfolio management system outside of BlueLeaf. But if you did, and you custody with SSG, they have a crazy good discount on BlackDiamond so I would go with them. Morningstar Office is a TERRIBLE system… I recommend staying away from it.
E-mail me if you have any additional questions… You will remain anonymous…
What do you do for compliance? SEC, FINRA, B/D is there anything you have to do since you are essentially the compliance department for an independent RIA?
Hey Anonymous,
I have a compliance expert on retainer. He helped me get set up initially, and helps with ongoing compliance, annual reviews, and such. Shoot me an e-mail and I will send over his contact information. He is very inexpensive, and specializes in new RIA’s.
You will remain anonymous, so don’t worry about e-mailing me!
Alan, I am setting up an RIA. Do you still have his contact info?.
Alan:
Thank you for posting this. Great overview and ideas!
I looked into BlueLeaf as client reporting tool. I spoke with one of their sales people. I found out that the client will NOT be able to see performance numbers in percentage terms, or rate of return (i.e. YTD, 1-Year, 3-Year, etc.), simply dollar amounts in change.
How do you cope with this in terms of year performance reporting and client reviews? I believe a comprehensive reporting software with all metrics is needed for client reviews.
Thanks!
Hey Skerdi,
I think you have to decide what features you need, and which ones you can’t live without. I would look at it from the client’s perspective and ask yourself, “What do they really want to know?” My clients wants to know how much they had on Jan 1st, and how much they have on Dec 31st. The rate of return is just another way to show this, but in the end, how much money they have is what matters.
On client reports, it does show a return figure, so you might want to do a trial period to check out the reports for yourself.
Alan:
Thank you for your reply. I appreciate your time.
I did get a sample report. The only rate of return they show in percentage terms if for the period in question (i.e from July 1 to Sep 30).
It is a matter of personal preference and how an advisor is already reporting performance to clients. Normally, it would beneficial to show annualized rates of return long-term, such as annualized 3- and 5-year rate of return. But this is just my opinion.
Thanks again for sharing all these with us!
Hi Alan,
Thank you for the great information. I have two questions related to MGP.
First, have you found it necessary to create your own asset classes and risk and return profiles or are you using the default portfolios and asset classes in MGP?
Second, do you use the MGP Asset Allocation Plan report as the Investment Policy Statement (IPS) for the client or do you use another application or not use an IPS with the client?
Thanks!
Jim
Hey Jim,
I have not created custom asset classes in MGP. The only one that’s missing is REIT’s, and they have a recommended work around for it. I can’t remember exactly, but something like 50% growth stocks, 50% long term bonds.
I don’t use a written IPS with clients because from my experience, clients never read or understood them. If the client got scared about the drop in their portfolio, the advisor pulls out the IPS and says “Look, you signed it” which is a way to avoid saying “I screwed up and had you too heavily invested in stocks.” I’m sure some advisors successfully use written IPS’s, I have just never seen it done so I have moved away from them.
Great post, Alan. I see this was about 2 – 3 months ago, so notwithstanding all this technology is old news now (I’m sort of joking), do you know if each of these work for Canadian-based planners as well? I checked out BlueLeaf and I think it’s solely for the US…
the less obvious ones I mean…. I use Google Apps, Dropbox, Hootsuite (Cdn company!), etc. I think I’m really asking about the financial planning focused ones (so the top 6 or 7 in your list).
Steve, that is a really good question. I think all of the programs would be fine for Canada except MoneyGuidePro. You would need to find a software package with Canadian tax information build in. Otherwise, I don’t see why Blueleaf wouldn’t work in Canada, or any of the other programs for that matter.
Thanks for sharing.
Virtual Meetings – Just thought I would share with you that Cisco WebEx is free for up to three participants.
Alan,
Great post. I realize this post is a few months old, but curious how things are working with MailChimp? I’ve considered using them in the past, but stopped because their terms of service, which prohibits using MailChimp for any stock market related content. Just curious what your experience has been. Thank you.
Tom, I don’t provide stock market analysis so I have never had any issues with them. I love the program, since it is set up now so that I never even go into it. Newsletters are generated automatically from blog posts, and I can push names from my CRM to the list, so it practically runs itself!
Alan,
That was extremely helpful. If you wouldn’t mind sharing, what are you using for client billing and invoicing? The last time I checked, Blueleaf calculated the billing fees, but does not provide client invoices. Do you use some other program to create the actual invoices to send to clients?
Also, you mentioned that you are using rebalancing software. Doesn’t NetX360 have built-in model portfolio trading and rebalancing? Any reason why you decided not to just use that?
Thanks so much!
I generate invoices out of Quickbooks. You can set it up to automatically run and e-mail the invoice to clients, so not a lot of manual labor involved.
Rebalancing programs provided by custodians always have two limitations: 1. They don’t take into account non-custodial accounts such as 401(k)’s. 2. The model is applied to the account level, not the household level, so tax efficient allocation isn’t possible. So, I think it is worth having a separate rebalance program. Plus, NetX360 is incredibly difficult to use so I stay out of it as much as possible.
Hi Alan,
I realize this is almost a year old, do you think you will be writing an updated list soon? A lot of new financial planning software products are coming out on the market. For example, have you tried goalgamiPro financial goal based planning software by Advisor Software Inc? I am biased because I work for them, but I thought maybe you could include us in your next evaluation: http://www.advisorsoftware.com/goalgamipro.html. We recently released our goalgamiPro app for Salesforce on the Salesforce AppExchange. Feel free to check it out and provide feedback/suggestions for improvement. https://appexchange.salesforce.com/listingDetail?listingId=a0N3000000B3ntiEAB
Wow this is such a resource! I’ve been looking for ways to improve efficiency and bring a more fresh perspective on managing the practice. I’m partnered with my father’s firm in Janesville, WI…so we’re not too far away. I really appreciate all the insight you have offered. One question though, it almost sounds like you are your own RIA with the freedom you have to use all these tools. Did you have to pioneer the approval for use? My broker/dealer is really great on the technology, but not this great. Thanks!
Hey Sheena! I own an independent fee-only RIA, so I don’t have to ask anyone for permission when it comes to technology (or much else for that matter). I have never had a B/D, but I hear a lot of complaints regarding what they will and will not allow… Certainly a reason many go independent.
Hi Alan,
I’m thinking about making the change to google apps and using Vault for email archiving. One thing I’ve noticed with google email is that any Bcc contacts do not show up when you review the email in sent mail. Do you know if Vault stores the Bcc data for all of your sent email?
Thanks!
Fantastic post! I am a rookie financial professional (in my fourth month) working with life insurance; retirement savings; mutual funds; etc. What is your short-list of inexpensive or free tech tools / resources I might consider in my work with clients as well as managing my own workload? Although I do plan to invest significantly in technology down the road, I don’t have the funds to make that investment now.
How do you backup your website (and revisions), for compliance purposes?
you should check out bluejeans for a skype replacement. Your connection is based on the connection at your location vs the worst of the connections in the group. Nice post. Some good info.
For portfolio performance software consider Portfolio Center + Krisan’s BackOffice at http://www.krisan.com/
Your article is extremely impressive. I never considered that it
was feasible to
accomplish something like that until after I looked over your post .
reduce overhead costs
i have started my online busiiness and the most hardest thing i have to cope up is the website traffic
thansk alot,this surly is helpful for me reduce wasted time
I would also consider tracking all your expenses so that you have a clear idea of where you are. A free app that does this is Personal Capital (http://apple.co/1IqS2Hj).
And what’s saving for retirement without a little fun? You can use the Count Us Down app (http://www.CountUsDown.com/Retirement) to countdown the days until you are financially independent!
In the early days of financial planning, most “advisors” were insurance or investment salespeople who evolved their skills and practices over time to become financial planning advisors Instead, planners must increasingly establish themselves in niches to truly differentiate themselves.
http://theadvisoryco.co/
Is there any way we could get an updated version of this? And if it already has been done, can someone please link it for me? Thank you.
Alan, I would LOVE to see an update of this list since this post is a few years old. Have you posted any new tech articles or would you consider a 3-year update of this review? Thanks!
Hello! Has there been an updated version of this topic and information since it was initially put together? Would be interested to hear what systems Alan uses, or recommends at this time. Thank you!
Have you looked into http://www.chalicefn.com? They have tons of products at up to 40% off. Saves thousands when going independent.