Here are ten hidden features from various Larkspur-Rixtrema tools for financial advisors:
1. “Edit Additional Fees”. We can compare fund expenses in the 401kFiduciaryOptimizer, but how can we factor in the rest of the plan fees for a really true compensation? To do this, click on “Summary” and you’ll see a button in the top right “Edit Additional Fees”. Here you can enter advisor fees, record-keeper fees, tpa fees, custodian fees… etc, for the existing plan and the new plan.
2. The new Executive report. We’ve scoured the web to find additional (high-level) contacts at these companies and in many cases you’ll find 5 or 6 contacts with pictures, job title, email, a link to their LinkedIn account. No email address? No problem. Click on “Request Email” and we’ll find it for you! In the Executive report you’ll also find additional phone numbers, company website/Hoover’s profile and links to the company’s social media accounts (Facebook, Twitter, LinkedIn, Instagram… etc) All of this helps you to know the prospect better BEFORE your first meeting. Another great feature is that if you add your own LinkedIn credentials, we’ll show you any connections you have at that company, so you can ask for referrals, introductions and you can learn more here: You need a process to win more plans.
3. “WealthCrashTest”. Probably the most not so well-known feature of PortfolioCrashTest is the “WealthCrashTest”. Advisors can send out invitations or just make a link/widget on their website for clients/leads to sign up and then upload their own portfolio to crash test it. Especially with release of POW 2.0 and advisors being able to access email addresses, this could be a great way for advisors to send a link to use WealthCrashTest and get leads to upload their portfolios and see how their portfolio would hold up.
4. The ability to compare a 401k plan’s original menu against another plan instead of just the “optimized alternatives” using the 401kFiduciaryOptimizer. You can just uncheck the top left check box and then select any plan menu that you have pre-loaded. That way if an advisor has an entire plan menu that they want to compare against instead of just based off of similarity. They can get the same breakdown of fees, performance, etc. without having to just make a 1 for 1 comparison of each fund. This is especially useful if the plans have a very different number of menu options.
5. Tools for a comprehensive analysis. Not all advisers, but a lot of them come across exotic holdings in the portfolios of their clients like options, private equity/debt funds, non-traded hedge funds, non-traded REITS, variable and fixed annuities, etc. Providing an intelligent analysis of how these types of assets can affect portfolio risk and performance can be a pivotal point to win a prospect or impress the client. Using RiXtrema IRAOptimizer or Portfolio Crash Test tools allows putting together a comprehensive analysis of such assets inside of portfolio for any client and/or prospect.
6. TDFoptimizer this is a great way for existing users to get extra value from 401kFO. To offer existing value to current plans the advisor holds by allowing the TDF family to be assessed quantitatively. This is important because for most plans, the majority of the plans assets are held in TDFs.
7. The TDFoptimizer also offers value to advisors for prospecting, by allowing the advisor to tell the plan sponsor about how they will survey each participant to reassure the plan sponsor that they can lower their fiduciary risk by assessing and ensuring the best selection of TDFs for the participants.
8. Fee Benchmark. 401k Fiduciary Optimizer has a hidden tool providing information on average advisory fee based on the plan assets and zip code of the plan the advisor is working on. Fee Benchmark can be found at the very bottom of the Edit Plan section. It shows the fees breakdown for different advisors parsed from their recent statements, the source can be viewed, criteria can be changed. Overall percentage represents nationwide fees, local number is for the fees charged locally. This is just an average number, but can be used in for the calculation, to make comparison of two plans (current and proposed) more precise.
9. Here are the most distinctive features of the 401kFiduciaryOptimizer Performance Report
10. Crash Rating is a number used to measure the risk of a portfolio. It is a representation of the loss a portfolio may incur during our worst stress-testing scenarios. Here is What you need to know about the Crash Rating in Portfolio Crash Testing.