Journal of Financial Planning ran a very interesting cover story on advisor technology. RiXtrema’s Don Harding and Daniel Satchkov both answered questions for the magazine. Daniel talked about crucial components of the DOL Fiduciary Rule Solution and Don has revealed the best tech investment for an enterprise under $100.
Here is Daniel’s reply to the question – “How your solution helps firms comply with the DOL Rule?”:
Daniel: “IRAFiduciaryOptimizer facilitates the straightforward creation of reports proving a rollover is in the investor’s best interest. It uses quantitative measures—fees, back-test performance, risk-adjusted returns, portfolio risk versus risk tolerance; and qualitative measures— additional services provided by the adviser versus the current 401(k) portfolio. First, to load prospects’ 401(k) portfolios, we offer streamlined data aggregation from virtually any retirement platform. To calculate the best interest report, advisers need to enter out-of-pocket fees that investors currently pay in 401(k) portfolios. A database of retirement plan fees covering over a million plans in the U.S. is available from our partner, Larkspur Data. Also available from Larkspur is a database of retirement plan red flags. It will flag things like low participation rate, poor performance, or lack of proper documentation within a plan. Next, our proprietary database, FeeComp, helps advisers create various benchmarks from fees charged by thousands of advisers. Finally, the admin portal stores every report created in a secure, encrypted system. The DOL rule enables litigation in state courts, which is easy to bring, so it’s imperative to have a prudent process to prevent breaches and to have every data point at your fingertips. ”
For Don’s big revelation on the best tech investment for an enterprise at less than $100 per advisor, you can download the Journal of Fin Planning story here.