Are you generating alpha for your clients? Clients choose an advisor for a variety of reasons. They stay because the advisor provides ongoing value with a personalized experience.
Research by Morningstar and Vanguard outlines how you can add ongoing value (alpha). By using two pieces of low-hanging fruit, you can help clients keep more of what they earn:
Here’s the challenge: scaling your business while also using highly customized (often tough to scale) strategies for each client’s situation.
Wouldn’t it be great if you could capture added value for your clients AND scale your business at the same time?
You can with GDX360.
Asset allocation determined primarily by risk tolerance based on a static questionnaire. Often ignores other household assets and human capital.
Asset allocation is a choice clients make based on resources, risk tolerance, goals and desired lifestyle. These resources may include household assets and human capital in the form of future savings resulting from earnings.
Rule-of-Thumb-based “4% Initial Withdrawal Rate” that grows with inflation. No adjustments for changes in resources, markets or life events.
Dynamic withdrawals are one of five levers clients can use to make the most of their life. Comfort Zone integrates your client’s withdrawal plans, retirement, legacy, savings, and investment plans. We adjust these levers as needed when market or life events move clients out of their Comfort Zone.
Each client account has the same asset allocation target. This approach typically increases trading and tax costs from account level rebalancing.
A client’s entire household has an asset allocation target. Assets are located in each account based on the tax treatment of each investment and the tax treatment of the accounts. This can improve tax efficiency and reduce rebalancing transactions.
Total Wealth Framework
Asset Location/Withdrawal Sourcing