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  • by Ben Welch
  • Managing Director of Advisor Business Development and iRebal, TD Ameritrade Institutional

Say Goodbye to Spreadsheets and Upgrade to Modern Rebalancing Tools

Ben Welch, Director of Advisor Business Development and iRebal, TD Ameritrade Institutional

Ben Welch, Director of Advisor Business Development and iRebal, TD Ameritrade Institutional

“This post is contributed by Ben Welch, Director of Advisor Business Development and iRebal (the portfolio rebalancing tool available through TD Ameritrade Institutional). Ben’s team is continuously working to develop new technology and programs to help advisors streamline their operations, provide better client service, and grow their businesses.”

Why aren’t all advisors using rebalancing technology?

It’s a tough question to answer. Given the number of firms that have seen their efficiency, consistency and client service improve after adopting the right rebalancing technology, I wonder why all advisors aren’t adopting this approach.

The good news is that the number of users has increased in recent years and every day more advisors are realizing the benefits of rebalancing technology. But there are far too many that are not.

Some advisors think that automation means compromise; that manually solving each rebalancing riddle is the way to ensure the best results for their clients.

The advisor’s personal approach to portfolio management is a key piece of the value proposition for clients. But is this value best delivered through painstaking manual rebalancing?

With the tools available today, I believe the answer is a resounding “no”!

The right solution can help reduce the legwork involved in monitoring portfolios. It can help advisors consistently recognize the moment when their settings indicate that trades are necessary for each client, including when:

• Asset classes have substantially drifted from their targets
• New cash is available to be invested
• Good tax loss harvesting opportunities are available

Saying goodbye to the old ways of spreadsheets and reports and upgrading to modern rebalancing tools can help eliminate inefficiencies while also helping to ensure your clients benefit from your firm’s best ideas.

Finding a Rebalancing Solution

With today’s choices in technology, finding the right rebalancing tool can seem overwhelming. And all rebalancing solutions are not created equally, so the key is to look for a customizable tool that is flexible enough—and smart enough—to think like you do.

Here are three things to put on your to-do list before you make your choice:

1. Ask key questions to compare tools: Can the system rebalance tax-efficiently across a household of accounts? Will unique client circumstances, restrictions and tax considerations be handled effectively? Can the system help proactively identify key tactical opportunities, such as tax loss harvesting, as part of your routine portfolio monitoring process?

2. Be specific about what you need. Ask the salesperson to show you how their rebalancing solution will accommodate your most challenging scenarios. For example, how will the system deal with legacy holdings for a large client, such as concentrated positions that can’t be sold due to low basis?

3. And don’t forget to leverage your peer network. Talk to advisors who already use rebalancing technology. What were their top choices and why? Hear how it has benefited their businesses and their clients.

With a bit of homework, you can find a rebalancing tool that will automate your process, help you react nimbly to changing markets and capitalize on opportunities…

… All while still effectively executing your strategy for each unique client situation.

TD Ameritrade Institutional offers smart rebalancing technology in the form of iRebal, the “Intelligent Rebalancer”. If you’d like more information you can follow this link.

It’s time to put away those spreadsheets!

iRebal products and services property of ThinkTech, Inc., an affiliate of TD Ameritrade, Inc.


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