March 26, 2014
- Director of Advisor Business Development and iRebal, TD Ameritrade Institutional
“As Director of Advisor Business Development and iRebal® (the portfolio rebalancing tool available through TD Ameritrade Institutional), I work with a team continuously striving to develop new technology and programs to help advisors streamline their operations, provide better client service, and grow their businesses.”
The first time I visited the office of a large advisory firm using iRebal, shortly after TD Ameritrade’s purchase of the software company, I was surprised to pick up their marketing brochure and find a whole page dedicated to their rebalancing strategy. The firm’s leaders explained to me that their ability to not only preach, but actually document and consistently execute a disciplined portfolio rebalancing strategy, gave them a tangible competitive advantage in speaking with prospects.
Investors turn to RIAs for a smarter approach. Without a documented and mutually understood rebalancing strategy in place, it’s all too easy for the client—or even the advisor—to slip back into the emotion-based investment decisions that have devastated all too many portfolios.
Lack of a defined rebalancing strategy = lack of disciplined risk management
Many advisors intend to analyze and rebalance client portfolios on a routine basis, though their process of actually doing so may not be consistent. No matter the allocation of the portfolio, the method of portfolio construction, or the trading strategy used, rebalancing according to a disciplined approach allows you to control risk and rest easier with the knowledge that none of your clients are slipping through the cracks. Market volatility will bring good and bad times to all investors, but advisors have the opportunity to face their clients in all conditions and provide the comfort of a consistently executed strategy.