Tag Archives: SigFig

FPPad Bits and Bytes for December 2, 2016

Posted on December 2, 2016 by in Bits & Bytes

On today’s broadcast, Vanare becomes AdvisorEngine after a $20 million dollar investment, RightCaptial gets a favorable review, and Addepar opens up about the capabilities of its technology.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by eMoney Advisor, the leading provider of digital wealth management solutions. eMoney just introduced two new Advanced Analytics products: Advisor Analytics Pro, offering advisors and support staff deeper business insights, and Office Analytics, offering never-before-seen firm-wide insights.

eMoney Advisor

Featuring a customizable Analytics dashboard, an expansive library of new and interactive data charts, and more, eMoney’s Advanced Analytics solutions will help you put your data to work and uncover more opportunities. For more information the eMoney Analytics solutions, visit fppad.com/emoneyanalytics.

Here are the links to this week’s top stories:

Vanare gets $20M in funding from WisdomTree, and rebrands itself from Financial Planning

[First up is news from Advisor Engine, which you may recognize under the company’s former name of Vanare. The name change was carried out as WisdomTree, the exchange-traded fund sponsor and asset manager, announced a $20 million dollar investment in Advisor Engine for 36% equity in the company.

This investment is the latest example of ETF issuers getting in the automated investment service space, but remember, BlackRock acquired FutureAdvisor, Invesco acquired Jemstep, yet WisdomTree chose to make a minority equity investment. I’m just not exactly sure why they didn’t acquire the whole business, but then again, I’m not the one that has to cut a check for $50 million dollars.

So let me connect some dots. All of the automated investment services are putting downward pricing pressure on asset allocation and periodic rebalancing. So in general, margins for traditional portfolio management are being compressed. You can either add value elsewhere, or look for ways to save on operational costs for your business.

AdvisorEngine’s new capital means it likely won’t shut down anytime soon, AND, the company recently added support for custody services at Apex Clearing, which could be a potential way you reduce your operational expenses AND allow you to pass some of those savings directly to your clients, all from a white-labeled solution.

For me, that’s why this transaction is an interesting one to keep an eye on.] WisdomTree is providing [Vanare] with an injection of funds in a bid to better position itself for industrywide changes wrought by new technologies and stiffer regulations, according to CEO Jonathan Steinberg.

Is RightCapital the right fit? from Financial Planning

[Next up is news about RightCapital, as Financial Planning magazine columnist Joel Bruckenstein reviewed the financial planning software and offered his take of where it fits in the marketplace. One of the distinctive features RightCapital offers is the ability to generate simulated tax forms so you can actually see how decisions on deductions, distributions, and taxable withdrawals will impact a client’s personal tax return.

Also, just because RightCapital has a fresh and modern UI doesn’t mean it’s a solution only for younger clients. RightCapital’s robust modeling of asset withdrawal strategies was highlighted in the review, allowing clients to simulate the best withdrawal strategies when factoring in Social Security and tax-deferred tax-free retirement accounts.

Of course, there’s much more to the review, but overall, RightCapital gets recommended as a more-than-adequate application for the mass affluent market. A 14-day free trial is available so you can evaluate the solution for your clients’ needs.] The middle ground in financial planning software is exactly the niche that RightCapital is targeting, according to co-founder Shuang Chen.

Addepar’s strategy: Focus on HNW, arm advisers with digital tools from Financial Planning

[But, if your business serves high net-worth households, this week’s final story on Addepar should be worth taking note. The investment management technology company appears to be opening up a bit more about exactly what it is they do.

In an interview with SourceMedia managing editor Suleman Din, Addepar’s CEO Eric Poirier described how much of the high net-worth marketplace has been historically addressed by custom Excel spreadsheets.

When clients start identifying assets like their limited partnership interests, equity investments, venture capital, and so on, most off-the-shelf solutions just aren’t compatible with the esoteric properties of these assets. But that’s been Addepar’s focus for five years, according to Poirier.

That kind of development sets Addepar apart as the Ferrari of the investment management technology space and is appropriate for households that require that kind of horsepower, and while that power certainly scales down to more traditional accounts with stocks, ETFs, and mutual funds, I suspect you’ll find it’s a bit overkill in capabilities and price if your business primarily serves the needs of mass affluent households.] While other fintech startups claimed they would disrupt the wealth management industry, Addepar has taken the tack that it can make it better.

Here are stories that didn’t make this week’s broadcast:

Future ready: Seismic moves for digital wealth management from Financial Planning

A close examination of the [2016 FP Tech Survey] data reveals other interesting trends, including which broker-dealers, custodians and third-party tech providers seem to be the best at meeting advisers’ needs, where advisers can get a good return on tech investment and how the next generation of advisers approaches tech.

Digital advice expects big growth from banks from Financial Planning

Digital advice as an industry will take off once it is built into retail banking, capitalizing on an investor segment ignored by wealth managers, says SigFig CEO Mike Sha. That’s why, announcing his firm’s newest partnership with Citizens Bank, Sha predicts his platform will reach half of all U.S. households by next year.

 

Watch FPPad Bits and Bytes for December 2, 2016

Watch FPPad Bits and Bytes for December 2, 2016

FPPad Bits and Bytes for November 18, 2016

Posted on November 18, 2016 by in Bits & Bytes

On today’s broadcast, Wells Fargo announces a partnership with SigFig, Cetera’s computers systems suffer a two-day outage, lessons from a hack at Lincoln Financial, and more.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by eMoney Advisor, the leading provider of digital wealth management solutions. eMoney just introduced two new Advanced Analytics products: Advisor Analytics Pro, offering advisors and support staff deeper business insights, and Office Analytics, offering never-before-seen firm-wide insights.

eMoney Advisor

Featuring a customizable Analytics dashboard, an expansive library of new and interactive data charts, and more, eMoney’s Advanced Analytics solutions will help you put your data to work and uncover more opportunities. For more information the eMoney Analytics solutions, visit fppad.com/emoneyanalytics.

Here are the links to this week’s top stories:

Wells Fargo Goes Robo With SigFig Wealth Management from WSJ.com, and

Wells Fargo notice of an application for an exemption from certain requirements of rule 3a-7(a)(4)(i) under the Investment Company Act of 1940 from SEC.gov

[First up is news from Wells Fargo, as the bank, which finds itself in the middle of a very public firestorm over opening unauthorized accounts, announced this week that it is partnering with SigFig to release an automated investment service to customers of Wells Fargo Advisors sometime in the first half of 2017.

Other than the potential release date, there really wasn’t any concrete information on pricing or the types of investments to be used in the service. Will they be Wells Fargo mutual funds, or third-party ETFs? As of today, Wells Fargo doesn’t offer its own ETFs, but earlier this year, the company filed an exemptive relief request with the SEC, signaling some intent to enter the ETF space.

But that opens the door for potential problems with the Department of Labor fiduciary rule, highlighted by industry Nerd-In-Chief Michael Kitces, where automated investment services that recommend investments in proprietary products, Kitces calls out Schwab Intelligent Portfolios and BlackRock’s FutureAdvisor, do not qualify under the Level Fee Fiduciary exemption because of the variable compensation inherent in an allocation of proprietary ETFs!

So, this is all “industry” stuff, and not all that applicable to your business, but here’s my point. All the big banks, all the incumbent financial institutions are boarding the automated investment bandwagon. Sooner rather than later, your clients and prospects are going to get solicited by the very institutions they use today.

And clients are expecting an experience like Uber, but you’re still driving around a dirty taxi that has to be flagged down with a hand in the air that doesn’t have a functional credit card machine!] Wells Fargo & Co.’s brokerage arm is partnering with SigFig Wealth Management LLC to bring automated investment advice to clients, the latest example of how traditional wealth-management firms are working with startup robo advisers to offer new digital tools to investors.

Cetera Brokers Endure Two-Day Systemwide Crash from AdvisorHub

[Next up is news about Cetera Financial Group, as the independent broker dealer encountered a company-wide systems outage that affected 9,000 brokers as well as the company’s back-office and operations teams.

According to an AdvisorHub article, the outage started on Monday, and one broker with First Allied reported that he could not sign in to view emails, access performance reports, or even call Cetera using their standard phone number. Cell phone numbers were eventually sent out on Monday evening.

In a firm-wide conference call on Tuesday afternoon, Cetera Chief Executive Robert Moore apologized for the disruption and said systems had been fully restored, and added that no data had been compromised through hacking or any other unauthorized access.

So, let this be a reminder that if it’s been a while since you tested your business continuity plan, next week’s Thanksgiving break might be a good time to do so. It doesn’t matter if you manage your own systems or leverage the resources of a broker-dealer, you need to verify how you can perform the essential parts of your business in the event of a disruption.

Attackers are launching denial of service attacks every day against financial institutions, so it’s important that you know exactly what you need to do when the systems you depend aren’t available.] Just six months after emerging from bankruptcy, independent brokerage company Cetera Financial Group experienced a companywide systems outage Monday and Tuesday that walled off brokers at its seven operating broker-dealers from customer data, emails and other vital account management functions.

Lincoln Financial Unit Gets $650K Fine After Server Hack from Law360, and

LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. 2013035036601 at FINRA.org

[And speaking of attackers, my last story is about Lincoln Financial Securities, an affiliate of Lincoln Financial Group, as the company paid a $650,000 fine imposed by FINRA for failing to safeguard customer data stored on a cloud server used by one of its OSJs.

Sometime in 2012, hackers were able to access the could server configured by a third-party vendor and obtain records on approximately 5,400 customers. The FINRA Letter of Acceptance doesn’t say HOW the server was compromised, and didn’t identify what kind of server was in use. Was it an FTP server, a service like Dropbox, a proprietary server with remote access, or something else?

But more troubling to me is that FINRA goes on to say that the firm “failed to take adequate steps to monitor or audit the vendors’ performance.” Now hold on. One benefit of leveraging third-party vendors is that they bring expertise to the table that the firm doesn’t have, like, oh, I don’t know, cybersecurity expertise.

But for FINRA to say that the firm failed to test and verify the security of the cloud servers, that just doesn’t seem right. The firm doesn’t HAVE the expertise in cloud server security, which is why the firm hired the third-party vendor in the first place, but now FINRA says that the firm is the one that has to verify the security of the third-party vendor that it hired to bring security expertise to the firm? How is that even possible?

What I do know is FINRA just levied a heavy fine on a firm because their third-party vendor had a hole in their security that was exploited by hackers, and in my opinion, that’s a troubling precedent that has been set.] A Lincoln Financial Group subsidiary on Monday agreed to accept a $650,000 fine leveled by the Financial Industry Regulatory Authority and implement tighter security protocols after hackers in mid-2012 accessed its cloud server and lifted the confidential records of roughly 5,400 customers.

Here are the stories that didn’t make this week’s broadcast:

WisdomTree Makes Strategic Investment in AdvisorEngine from WisdomTree

WisdomTree Investments, Inc. announced that it has invested $20 million for a 36% equity interest in AdvisorEngine, formerly known as Vanare, an end-to-end digital wealth management platform which enables individual customization of investment philosophies.

PIEtech℠, Inc. Unveils Integration with MX for Aggregation and Personal Financial Management Functionality from PRWeb

PIEtech℠, Inc., the creator of the industry’s leading financial planning software, MoneyGuidePro®, today unveiled a new integration with MX to deepen the availability of aggregation for MoneyGuidePro® subscribers and add personal financial management (PFM) functionality via the client portal.

Combined Envestnet and Yodlee Data Offering Supports Morgan Stanley Wealth Management from PRNewswire.com

Envestnet | Yodlee and its parent company Envestnet, today announced a partnership for the combined organization, providing data aggregation, digital applications and data reconciliation solutions to Morgan Stanley, one of the largest, most established wealth management businesses in the industry.

 

Watch FPPad Bits and Bytes for November 18, 2016

Watch FPPad Bits and Bytes for November 18, 2016

FPPad Bits and Bytes for May 6, 2016

Posted on May 6, 2016 by in Bits & Bytes

On today’s broadcast, Wealthbox CRM releases 5 new integrations, Orion sends portfolio information to clients via text message, Morningstar ByAllAccounts introduces a new client portal, and more.

So get ready, FPPad Bits and Bytes begins now!

Here are the links to this week’s top stories:

5 New Integrations: Zapier, TD Ameritrade, Riskalyze, Orion, Microsoft Office 365 from Wealthbox.com

[This week’s top story comes from Wealthbox CRM, as the company took advantage of a Cinco de Mayo theme to announce five new integrations on 5/5. The new integrations include TD Ameritrade Institutional’s Veo Open Access, Riskalyze, Orion Advisor Services, Microsoft Office 365, and Zapier. If Zapier sounds familiar, that’s because you heard about it in last week’s episode, unless you missed it, which means you should take a few minutes to watch it and get caught up.

This is great news from Wealthbox CRM, as many advisors I know were discouraged from using it in the past because it lacked integrations with many core technology solutions. With that objection out of the way, you should update your due diligence matrix to see which CRM is the best fit for your business objectives over the next few years.] Today we’re happy to announce five new Wealthbox CRM integrations with leading technology partners.

Orion Advisor Services Launches Text Alert Platform for Advisors from MarketWired

[Next up is news from Orion Advisor Services, as this week the portfolio accounting service provider announced a new app called Notifications. Once clients register their mobile number using the Orion client portal, Notifications uses text messages to provide updates like your clients’ portfolio balance, performance information, or even RMDs. Oh, and for you compliance officers watching, all of the messaging are automated, meaning there is no personal communication between the client and the advisor.

Ever since I saw the Penny App at last year’s FinCon event, I’ve been waiting for an advisor fintech provider to roll out text messaging for updates to clients, and correct me if I’m wrong, but I’m pretty sure Orion is the first provider to do it.

Now one drawback I see is that clients need to learn special keywords like BAL, PERF, ADV to get information, so my challenge Brad and his team, you remember Brad, the potato chip guy from one of my vlogs, is to add in support for natural language processing so I can just ask the app, “What is my portfolio balance?”
Sorry Brad!] Orion Advisor Services, LLC (“Orion”), a premier portfolio accounting service provider for financial advisors, is announcing the launch of the Notifications app, which allows advisors to communicate with clients more directly by sending portfolio updates and scheduling meetings all via a text alert platform.

Morningstar Launches ByAllAccounts Personal Financial Management Portal for Advisors, Aggregates Investor Accounts with Daily Updates for a More Holistic View of Total Wealth from Morningstar

[And finally, news from Morningstar wraps up this week’s broadcast as the company’s aggregation service, ByAllAccounts, released a personal financial management portal for advisors and clients.

The new portal is available as a complete solution with customized branding for your firm, or if you already use a portal or online dashboard from other providers, you can choose from a number of the ByAllAccounts portal elements to use as stand-alone tools. For this reason, pricing is going to depend based on your needs for a solution, but whatever you pay, account aggregation from ByAllAccounts is included for an unlimited number of clients and accounts.

But there are some caveats you should know: First, the aggregation data is not intended for data reconciliation, so it’s not suitable for detailed portfolio performance information. Reconciliation-ready data is part of the the traditional ByAllAccounts aggregation service.

Second, a minimum number of licenses are required to use the portal, so today, this solution targeted for the mid- to large RIAs and broker-dealers, yet I’m optimistic that over time ByAllAccounts can offer pricing and functionality that is attractive to advisors of all sizes.] Morningstar, Inc., a leading provider of independent investment research, today launched a new personal financial management portal in the firm’s account aggregation service, Morningstar® ByAllAccounts.

Here are the stories that didn’t make this week’s broadcast:

Periscope mimics FB Live by letting you permanently #Save replays from TechCrunch

You can now permanently save replays of your broadcasts by including #Save in their title.

Pershing platform expands robo offerings with Vanare, Jemstep and SigFig partnerships from Financial Planning

Demonstrating the intensifying race to dominate adviser technology, Pershing broadened the scope of its B2B digital advice offerings, announcing on Wednesday it was bringing startups SigFig, Vanare and Invesco’s Jemstep Advisor Pro onto its platform that also includes the still-developing robo Marstone.

Cloak is now part of StackPath from GetCloak.com

Peter, Nick, and I are excited to announce that Cloak is now part of StackPath, a still-stealthy startup based in Dallas, Texas that has bold plans for online security.

Laserfiche 10.1 at the Forefront of ECM and Business Process Automation from Laserfiche

Laserfiche today announced the availability of Laserfiche 10.1. The latest enterprise content management (ECM) offering builds on the features and resources of Laserfiche 10, released in January 2016, further enhancing teamwork and collaboration, refining case management capabilities and extending business analytics.

Watch FPPad Bits and Bytes for May 6, 2016

Watch FPPad Bits and Bytes for May 6, 2016

FPPad Bits and Bytes for March 20

Posted on March 20, 2015 by in Bits & Bytes

On today’s broadcast, learn about the technology one planner selected to launch his new RIA, SigFig launches a free portfolio guidance algorithm for investors, and find out what happens when Tony Robbins mentions your firm in his best-selling book.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by ITEGRIA, providers of complete outsourced technology support, security, infrastructure and IT solutions exclusively for RIAs.

itegria - providing a 360-degree, comprehensive approach to financial advisor IT needs

In their new book titled Red Flags, you’ll learn how to protect your firm from cyber-attacks, disasters, and IT compliance risks. Learn more about the Red Flags book by visiting fppad.com/itegria.

Here are the links to this week’s top stories:

Meeting The Requirements To Start Your Own RIA Without Breaking The Bank from Kitces.com

[This weeks top story comes from Michael Kitces’ Nerd’s Eye View, as this week Kitces featured a guest post from financial planner Andrew McFadden. McFadden tells how he was inspired to launch his own RIA after reading a post by Gen Y planner Sophia Bera about her own experience. He recently launched Panoramic Financial Advice for roughly $7,000 and provided a helpful overview of the technology he selected to get his business up and running.

First, McFadden chose Less Annoying CRM after evaluating Redtail and Wealthbox, because of the CRM’s customization options and low price of just $10 a month. Less Annoying CRM does integrate with Google Apps and Mailchimp, but it doesn’t offer integrations to industry programs like financial planning or portfolio management software. But that’s ok, because McFadden didn’t need to buy portfolio management software, as he opted to leverage the services of third-party money manager Frontier Asset Management which uses Fidelity as its custodian.

For planning engagements, McFadden gathers client data using PreciseFP, builds financial plans using MoneyGuidePro, communicates with remote clients via Skype, and gathers electronic signatures using Adobe EchoSign.

So think about the advisors in your business: For $7,000 and a lot of hustling, practically anyone can start new RIA from scratch. So if you’re not investing in your people, your technology, and your compensation plan so that there’s upside potential in your business, don’t be surprised if you witness breakaways from your firm as advisors decide to go out on their own.] Launching a business is hard enough in any industry, but getting through the requirements for setting up an RIA and figuring out the necessary technology vendors and software to have in place when starting a firm can be especially daunting.

SigFig Launches ‘SigFig Guidance’ to Help the 90% of Investors Losing Money Due to Common Mistakes from BusinessWire.com

[Next up is news from SigFig, another player in the online automated investment service arena, that launched a new feature this week called SigFig Guidance. SigFig Guidance uses an online questionnaire and account aggregation to identify an investor’s current portfolio and risk tolerance, and then proceeds to diagnose common problems in the portfolio. SigFig Guidance looks for things like high fees, uninvested cash, excessive risk, and poor diversification, and then offers portfolio recommendations generated by SigFig’s algorithms, all for free.

So does this sound like a second opinion service or a portfolio checkup? That’s because it is. So if you’ve been using a second opinion incentive to attract prospects to your business, you might need to modify your process in light of this new competition.] SigFig, the fastest and most convenient automated investment service, today launched ‘SigFig Guidance’, a free investment tool specifically designed to analyze any portfolio in less than five minutes, offering unbiased, actionable suggestions to optimize returns and reduce fees.

Stronghold takes wraps off robo matchmaker by InvestmentNews

[And speaking of portfolio checkups, this week’s broadcast ends with another new portfolio checkup service, only this one is offered by Stronghold Financial out of San Diego. Now where have I heard that name before? Oh, yes, Stronghold Financial is the business that motivational speaker Tony Robbins promoted in his book, “Money: Master the Game” published back in November, and the firm is led by Robbins’ own advisor Ajay Gupta, which created a bit of controversy on its own.

That aside, what happens when your firm gets mentioned in a New York Times best selling book? You get flooded with leads. In response, Stronghold now offers a free Portfolio Checkup service on its website that uses account aggregation powered by Jemstep in the back end, but instead of taking on thousands of new clients itself, Stronghold is referring those clients out to roughly 100 financial advisors who are part of the Stronghold network, and in return, those advisors pay 25% of the fees generated by each referral back to Stronghold.

So if you feel like your lead generation could use a boost from riding the coattails of Tony Robbins, this is an interesting option to consider at the least, or you could implement Jemstep on your own for a lower fee, but be totally responsible for your own lead generation campaign.] Stronghold Financial, the advisory firm that found itself at the center of controversy last fall because of its ties to self-help guru Tony Robbins, believes its robo-matchmaking service is ready for prime time.

There were no other of stories of interest this week, so enjoy an early start to your weekend!

 

Watch FPPad Bits and Bytes for March 20, 2015

Watch FPPad Bits and Bytes for March 20, 2015

FPPad Bits and Bytes for July 5

Posted on July 5, 2013 by in Bits & Bytes

fireworks

The Fourth of July holiday is an ideal time for independent financial advisers in the U.S. to celebrate independence.

But before you leave for the long weekend of hot dogs, hamburgers and cold drinks, take three minutes to review this week’s stories of interest:

Lockbox and Smarsh Partner to Offer a New Standard in Privacy and Security Service to Financial Services Professionals from Marketwire.com and Exemplar Turns to the Cloud for Document Security from Financial-Planning.com

[Who is Lockbox? They rapidly advanced up my watch list of companies with technology solutions for financial advisers. Lockbox is an Australian company that just entered the US market in May this year. They are entering a crowded space of cloud document storage providers along with Dropbox, Box, ShareFile, SpiderOak, and many more. Lockbox’s strong points are that it offers two-factor authentication and client-side encryption (see: Evaluating Online Document Storage at the Journal of Financial Planning for more details), but Lockbox lacks a number of features I’d like to see in a true solution for advisers. As of today, Lockbox isn’t compatible with Mac, they don’t offer desktop file synchronization, and they don’t have mobile apps for iOS or Android. Add these capabilities and change pricing from user based to storage capacity based, and I’ll be interested.] Lockbox, the leader in privacy and security service, today announced that AdvisorSquare, part of the Smarsh suite of website services designed specifically for financial services professionals, has joined the company’s affiliate community.

SigFig Lands $15 Million in Series B Funding From Top Investors from Finovate.com

[Officially launched just under two years ago, San Francisco-based SigFig raised $15 million in Series B funding to . Formerly known as WikiInvest, SigFig aggregates over $75 billion in assets on its platform and is entirely about making investment analysis accessible and transparent, while delivering investment recommendations in an attempt to generate a higher return in a portfolio. Recommendations typically cover switching mutual funds or ETFs for similar, lower-fee versions, or changing financial institutions where lower trading commission charges are offered. But for clients who have professional investment advisers, SigFig compares portfolio performance to a peer group of thousands of other investment advisers aggregated in the platform. If your portfolio isn’t performing, SigFig tells clients “Your adviser sucks for the following reasons:” How’s that for a nudge?!?] SigFig, the platform that helps users manage a total of $75 billion in assets, recently received $15 million in Series B funding.

Tech Review: New Digital Content Services from Financial-Planning.com

[You work something like 40 hours a week. If you want to maximize time servicing existing clients and attracting new ones, how much time should you be devoting to creating content shared on social media networks? Probably not a lot. Thankfully, Joel Bruckenstein shares two providers, Vestorly (listen to my podcast with Vestorly co-founder Justin Wisz at Social currency might just be the answer to financial advisers’ frustration with social media) and AdvisorDeck,  in his July column at Financial Planning that can streamline your content generation process, saving you precious time while still allowing you to maximize your compliant use of social media.] While many advisors have struggled to adopt social networking tools, there have been few low-cost, turnkey solutions to help advisors curate information and automatically deliver digital content to clients and prospects.

Succession Planning for an Entire Industry: Why Study Groups Aren’t That Bad from AdvisorOne.com

[Warning: subtle self promotion ahead! This story by AdvisorOne’s John Sullivan tells you why study groups are not bad, contrary to what compliance adviser Tom Giachetti might say. I belong to an outstanding study group called Xcelsior, and in this story you’ll ready why this study group shows that an exciting future lies ahead for the financial planning industry.] Compliance curmudgeon Tom Giachetti doesn’t think much of study groups. “Study groups are a bunch of people sitting around convincing each other that they’re right,” the chairman of the securities practice group at the law firm of Stark & Stark said recently in Denver.

FPPad Bits and Bytes for July 6

Posted on July 6, 2012 by in Bits & Bytes

One thing a week split by a holiday does is drastically reduce the amount of news you need to know. So enjoy a short Bits and Bytes update today and get on with your weekend plans.

First, be sure you get the checklist of 10 things you should ask before signing on with a cloud service provider. Read How to Stay Safe When Using the Cloud from the Journal of Financial Planning.

Here are this week’s stories of interest:

Six More Designate Erado as Their Social Media Compliance Provider from Erado.com

[Thankfully advisers have multiple vendors from which to choose for their social media compliance needs. Here, Erado announces six more engagements, though I might need to dig into the claim that they’re the “nation’s leading service.” Time for a face off article!] Erado, the nation’s leading service in SaaS based archiving of electronic communications, formally announces its exclusive agreement to provide social media compliance services to Soundmark Wealth Management LLC, Capitol Securities Management Inc., St. Croix Advisors LLC, Strategic Financial Services, Martin Wolf Securities, and Providence Financial & Insurance Services Inc.

‘Mint For Investments’ Startup SigFig Goes Mobile With New iPhone And Android Apps from TechCrunch.com

[SigFig is another one of the growing “robo adviser” online advice platforms for consumers and investors (see Competing Against “Robo Advisors:” Delivering Advice in a New World from T3 2012). Now they have an attractive mobile app that allows users to view all of their aggregated account information on their mobile device.] SigFig lets users connect all their various investment accounts — including 401k plans, IRAs, etc. — onto a single dashboard.

Plantly launches “missing allocation tool” to the public

Posted on May 31, 2012 by in Software, Technology

Brooklyn-based startup launches free asset allocation planning tool to the public

Investors (read: your future clients) have an ever-increasing array of options to obtain financial advice online. You’ve read about sites and apps like Personal Capital, Betterment, SigFig, and Wealthfront on FPPad before.

Plantly, a Brooklyn-based startup, is the latest financial services startup seeking to lower the barriers between investors and access to investment guidance.

On Plantly’s website, users can select from a range of five plans arranged by targeted return and level of risk. Each week the five plans are optimized to adjust their asset allocations according to Plantly’s proprietary risk/return models.

Ideally, according to Plantly’s website, investors select a plan based on their tolerance for risk and expectation for return, allocate their own portfolio according to the plan, and reevaluate plans annually. Plantly plans begin with principles from Harry Markovitz’s Modern Portfolio Theory that are then run through custom forecasting, probability, and scenario engines to identify potential outcomes of individual plans.

There’s a lot more detail behind Plantly on its website, and when I stop traveling, I hope to have a chance to virtually sit down with Plantly’s founders for some additional insight.

It’s an intriguing option among the suite of online investment tools, especially for the do-it-yourself investor seeking allocation guidance supported by reasonable thought and scenario testing (though no back testing will ever produce a loss-proof allocation).

 

 

FPPad Bits and Bytes for May 4

Posted on May 4, 2012 by in Bits & Bytes

Recent travel and a nasty cold this week prevented me from setting aside time for regular updates to FPPad. I just returned from giving a presentation in Phoenix, got sick, and want to get better before I head to San Francisco on Monday for Finovate Spring 2012.

I still need to unpack my bag from Wednesday and repack it for Monday, but you are free to proceed with this week’s stories of interest:

SigFig offers to tune up your investment portfolio from GigaOM.com

[Over the past few months I’ve highlighted new platforms like Personal Capital aiming to reach investors directly through simple websites and mobile apps. SigFig is another one to watch that officially launched earlier this week.] SigFig, a product born from portfolio tracker Wikinvest, is finally launching formally Tuesday, offering to make understanding investments easy. The free service, which has been in beta, allows users to sync all their investments and monitor them in real-time from one dashboard with extensive analysis conducted in the background to help find where users can save money.

Why Betterment, Wealthfront, and Other Online Investment Firms are Wrong about Financial Advisors from Forbes.com

[For more on the “robo adviser” trend, here’s an op-ed piece from Brightscope’s Mike Alfred in Forbes. My take: clients of the future will still want to engage and interact with human being advisers, only they want their advisers to be proficient in technology and support virtual engagement, both online and on mobile devices.] In a recent blogpost, Betterment made the broad-sweeping claim that Financial Advisors are Bad for Your Health. To make their position clear, they included an unfortunate image of a human face on the body of a pig. It didn’t take long for the Reformed Broker Josh Brown to draw the conclusion that Betterment thinks Financial Advisors are Pigs.

Redtail Technology Launches Integration with NetDocuments from PRWeb.com

[So Redtail CRM already has a document storage system called Imaging, but it lacks a number of components found in a true document management system. Redtail could either update Imaging to include new features, or it can support an integration with a third party document management provider. Alas, it appears Redtail’s strategy is to pursue the latter.] NetDocuments, a leading cloud content management service provider, announced a new integration today with Redtail Technology’s innovative web-based Client Relationship Management (CRM) solution for Financial Advisors.