AssetBook’s 2017 Power Up User’s Conference is slated for September 27-29

Be A Radar Power User!

We want to cordially invite you to attend this year’s Power Up User’s and Training conference.  The event will again be held on September 27-29 at Rocky Gap Resort and Casino which is nestled in the mystic mountains of Western Maryland.

view-from-across-the

Our expert trainers will teach you everything you need to know to become a Radar Power User!  We will offer both basic training and advance breakout sessions.

Past attendees of our user’s conference have raved about the content of the our training sessions as well as the venue.  Check out the video below to hear what AssetBook users who attended our Power Up conference last year had to say…

Call us today to reserve your spot.  See you in September!

Announcing direct data feed from Utah Educational Savings Plans (USEP)

AssetBook is proud to formally introduce its newest integration partner, Utah Educational Savings Plans (USEP).  Many of our advisors have given high praise to USEP, so we wanted to share some information about their 529 platform.

Trend UESP

  • As of 2011, assets in direct-sold vs advisor-sold 529 plans were even—50 percent of the industry was with direct-sold plans, where the other 50 percent was with advisor-sold plans.
  • Since then, direct-sold plans have continued to see the largest growth in the industry.
  • As of the second quarter in 2016, direct-sold plans have $127 billion in assets versus $108 billion for advisor-sold plans.
  • More advisors are going toward direct-sold plans due to lower costs, simplicity, and age-based options.

Federal Tax Benefits

  • Earnings exempt from federal income tax if used
  • for qualified higher education expenses
  • Accounts held outside taxable estate
  • Treated as completed gift to the beneficiary
  • Five-year election (IRS Form 709)

Tax Bene

State Tax Benefits

State Benes

  • The rule of thumb regarding tax benefits and 529s is to tell people to look at their state’s plan first. If they have a state plan that offers tax benefits, they may want to invest in their state’s plan. It depends on their individual tax situation.
  • Looking at the graphic, the 16 states in blue either have no state income tax or no state tax incentives for residents. Residents of these states don’t have any enticement to stay within their state’s plan, so it affords them the opportunity to shop around and consider other states’ 529 plans.
  • The six states in green are tax parity states: Arizona, Montana, Kansas, Missouri, Pennsylvania, and Maine. Think about tax parity like the anti-home-court advantage—there’s a tax incentive for investing in that state’s 529 plan, but the state will offer the same incentive for any plan they choose, whether it’s the home plan or not.
  • The states in grey offer tax benefits. Some states might not have tax benefits that outweigh the fees or the tax benefit might not be an incentive. The account owner might also want to invest up to the maximum benefit for their state, and then invest anything beyond that amount in another state’s plan.
  • Each account owner must consider his or her individual tax situation.

About UESP

  • The “all-in” asset-weighted fee includes the underlying expense ratio of the funds plus the UESP Administrative Asset Fee.
  • Highly ranked by Morningstar, Kiplinger’s, Money magazine, and consumer advocate Clark Howard. UESP is one of three gold-rated Morningstar plans, and UESP has received Morningstar’s top rating 11 of 13 years.
  • UESP offers both Vanguard and Dimensional funds.

For more information, contact UESP directly.

Utah Educational Savings Plan (UESP) 

Direct: 801.869.8926 | uesp.org

Toll Free: 800.418.2551 | Fax: 801.321.7299

Joel Bruckenstein’s 2017 T3 Conference was the Biggest to Date

This year’s T3 (Technology Tools for Today) conference attracted an impressive number of attendees.  With more than 600 in attendance, the conference has doubled in size the past several years.

The conference also seems to be THE venue for fin-tech firms to announce new ventures, software versions, and integrations.  There is no better conference for advisors keen on keeping up with cutting edge technology in the financial services sector.

T3

AssetBook exhibitors Jimmy Wilkes and Rob Major

Takeaways:

We noticed a couple of trends creating buzz at the show… most notably robo technology for advisors and truly seamless integration of advisor technology.

On the robo front, we noticed that in addition to established portals like Betterment and Oranj, systems new to the space like Advisor Engine not only showed up but sponsored the conference at the Platinum level.  Riskalyze announced its own new robo-esque platform as well.

It appears that advisors are continuing to embrace the technology that the robos are bringing to the table.  These platforms eliminate the need for human intervention to assist in client onboarding, risk profiling, model design and implementation.

Seamless integration of advisor facing apps may seem like a broken record at this point.  Some of you may remember the decade-old Silver Bullet campaign.  Until now, it really hasn’t evolved all that much as most integrations between advisor apps still use old-school “push-pull” techniques or old-school web services.

Modern APIs are the key to achieving rich and meaningful integration of your CRM, PMS, Planning and Trading systems.  It also seems like the custodians may play a role in connecting the APIs in a standard way.

Presentations:

As always, we enjoyed the speakers, especially Bob Veres.

IMG_4243

Bob was talking about “The One Solution”, which refers to his theory that the financial planning industry is basically “stalled” in terms of advisors attracting new clients.  In summary, Bob presented a viable solution to the problem that included employing younger succession advisors, improving your on-line presence including digital reporting, leveraging communication technology (like Skype and Facetime), and building niche communities of clients to serve.

The presentation was enlightening and Bob goes into detail on his theory, as well as many other revelations in his new book named The New Profession.  In our opinion, the book is excellent and is a must-read for financial professionals.

Finally, Rob Major spoke on the topic of identity fraud in a presentation named “The $100,000 Lesson Learned.”  He shared a true story about how a client of a well-established RIA firm was victimized by a fraudster, and how and why the RIA was responsible for paying the money back.

Again, we can’t say enough good things about the T3 conference and hope to see you next year in Ft. Lauderdale, FL for the 2018 conference.  It will be held February 6-9, 2018 at the Marriott Harbor Beach Resort and Conference Center.

News about our client portal

Below is a summary of yesterday’s Amazon Web Services (AWS) outage that caused our InvestorView client portal to be offline for several hours yesterday.

Valued Customer –

We experienced a full outage this morning around 10:05am PST. This outage lasted until approx 2:55pm PST when full service was restored. At this time the app is fully operational and accessible. I’m writing to share some details around this event as we know it impacted your operations.

Around 9:40am PST we noticed site performance degredation & increased error rates. At this point we started monitoring the site closer to understand the scope/impact. At 10:08 we traced this to a significant outage event for Amazon Web Services (AWS). AWS communicated to their customers around 10:15amthat they were experiencing “increased error rates” with their storage service (S3). S3 is not only heavily used by (and a critical component of) Modestspark, but it is widely used by other applications (Netflix, Slack.com, Trello, Quora, etc.) as vital “plumbing” for Internet services. In addition to S3 issues, other core Amazon services (CDN, emailer, etc.) were offline – this crippled our ability to communicate out the issue to you sooner.

Unfortunately, as we learned today, built in redundancies that we thought were available from AWS did NOT work as advertised and their outage caused our site to become unavailable. To top things off, Amazon did a horrible job of communicating this outage to their customers – this kept us in the dark for longer than we would have liked and we’re keeping our fingers crossed that Amazon does a better job in the future communicating outages/issues like this so we can act accordingly.

As you’ll see below, our biggest takeaways from this incident will be relying less on 3rd party providers like Amazon for our communication serivces. Not being able to get the message out was frustrating for us as I’m sure it was for you not knowing what was going on!

We’ve experienced 99.98% (or greater) uptime consistently over the past 4 years and when an incident like this happens, we take it serious. We’re going to learn from it, do better and take steps to ensure that we don’t have a situation like this in the future.

What we plan to do:

  • Develop a status page that does NOT rely on AWS in any way. We have one built but unfortuntely we discovered it had a tight coupling with certain S3 assets
  • Develop a mass emailer (for Admin notification) that does NOT rely on Amazon S3 or AWS email services. we have one built but discovered it also has a dependency with AWS services (S3, SES)
  • Use Twitter to communicate outages (@modestspark) . Most of you have never checked our Twitter feed, but I’d recommend following @modestspark for this reason. We’ll use it as a channel to communicate events like this in the future should they occur.

We take outages like this seriously as we know that you’ve put your confidence in us to deliver an great Client Experience that needs to be availble when your Client’s want access. You have our commitment that, while we can’t eliminate events like this, we will work to minimize any occurance in the future.

Again, our apologies for this disruption in service.

TD Ameritrade LINC National Conference Recap

This year’s TD National LINC 2017 conference was our best ever!  This conference gets better every year, so if you missed it consider going next year.

Highlights from the conference:

A major focus of the conference was the roll out of Veo One, TD’s new integrated advisor desktop.  This could be the best platform for integration we’ve seen so far. We’ll join the new platform as an integration partner in the near future.

We were also impressed with the advancements to iRebal. Advisors using standard models could benefit heavily from the new automation features that are built into the trading system.

Thanks to everyone that came by to see us in Veo Village. David Robertson and Frank Taylor enjoyed speaking to each of you.

Congratulations to Todd Resnick, CFP®, who won our giveaway, a GoPro.

GoProWinner

Todd Resnick, CFP® of OneSeven (left) and Frank Taylor of AssetBook.

Great job TD Ameritrade for a great conference!

AssetBook is YOUR Partner in Regulatory Audits

When the regulators come knocking, will you have the tools necessary to efficiently meet the specific requests that they require?

audit

When you experience the pressure associated with a regulatory audit, you’ll quickly understand the value in having a partner like AssetBook.  We help you produce the incredibly specific reports and lists they require, with minimal interruption to your business. Partnering with AssetBook will give you peace of mind because you’ll be ready when they come knocking.

Our custom approach to audit support streamlines the process because we’re able to produce these custom requests timely and efficiently, such as:

  • Trade Blotters for all investment types for any date range
  • AUM reports by household, account, or portfolio for any date range
  • Global performance reporting by household, account, portfolio or class for any date range including quarterly, monthly or daily intervals
  • Global management fee billing support including detailed breakdown of fee calculation for your entire client base
  • Security and trading analysis reports including 13F reporting requirements

AssetBook has more than 15 years experience in supporting advisors when the auditors call.

Pass

We’ve learned that providing auditors with the exact reports they ask for, no more, no less, drastically speeds up the examination process. Send them happily on their way, satisfied with their findings.

Modestspark Announces January Webinar Series

Here’s what is coming in January:

2-Factor Authentication (2FA) – Release Preview

Audience: Administrators and Advisors
Description: 2-factor auth is coming to Modestspark on January 15th. With security for you and clients always a top priority, 2FA is great feature you should know about. Learn more about the upcoming 1/15/2017 release containing 2FA and how to use these new capabilities.

Wednesday, January 11 @ 08:00am PST

(NEW) Vendor & Contract Management – Product Release

Audience: Administrators, Compliance, Operations, Finance
Description: Modestspark is introducing a brand new product in 2017! With regulatory & compliance becoming increasingly important, having to manage vendors and contracts becomes strategic in understanding & avoiding risk. We’re excited to introduce a new product that helps advisory firms deal with the challenge of managing key relationships and agreements. Join us and learn how Modestspark can assist firms in managing, automating and providing key insights to this needed discipline.

Wednesday, January 18 @ 8:00am PST
-or-
Wednesday, January 25 @ 8:00am PST

Document Center – Deep Dive & Best Practices

Audience: Administrators and Advisors
Description: The Document Center is a key feature within Modestspark. With unlimited storage and easy access for you and clients, the Document Center is a vital place to securely store quarterly reports, invoices and other important documents. Learn more about the use of Document Center, tips/tricks to increase adoption and migration of documents into Document Center.

Thursday, January 26 @ 8:00am PST

This announcement is only sent to Administrators registered within Modestspark. If you feel others in your firm would be interested in attending, please forward this email on.

We hope you can attend!

Using AssetBook for Tax Planning

As we approach the end of the year, many advisors are taking the time to analyze their client’s accounts, searching for opportunities to save them money on this year’s income taxes.  Since each client’s taxable situation is unique, it is important to understand how cost basis is handled in AssetBook and what useful tools are available to help you with this effort.

We also thought it would be useful to explain in detail the tax lot information being imported into AssetBook from your custodian that could be extremely useful when considering tax harvesting opportunities.tax

Tracking Cost Basis in AssetBook

There are two ways in which we track cost basis in both AssetBook systems:

  1. Internal cost accounting system
  2. Importing tax lots from the big 4 custodians

Using AssetBook internal cost accounting feature

Our internal cost accounting system can track cost basis using the following standard methods:

  • Average
  • FIFO
  • LIFO
  • High Cost
  • Low Cost

Using the imported custodian tax lots feature

This is the preferred method, since by using your custodian’s tax lots mitigates the chance for discrepancies between your custodian’s tax reporting and your own tax reporting.  To use your custodian’s tax lots, notify your custodians that you wish to receive the files.  In AssetBook, enable custodian tax lots by clicking the “Use Custodian Cost” box on each account record.

Tools to identify tax saving opportunities

We thought it would be useful to explain in a couple of tools available that could be extremely useful when considering tax harvesting opportunities.

Tax Considerations tile in the Household Dashboard

The Tax Considerations tile is a very good way to see your client’s tax picture at a glance.  The tile shows you all taxable income, short and long term realized gain/loss.  It also displays the client’s top 3 unrealized losses for positions in taxable accounts.

Account Unrealized Gains/losses Report

Once to get a look at your client’s tax picture, run the unrealized gain report.  This report can be run at either the Household or Accounts levels.

Other useful reports

  • Household Rebalancing by Class with Last Buy Date (rebalancing report that shows cost basis and gain/loss for each position).
  • Advisor Positions Unrealized Gain/Loss (Global report across clients)
  • Advisor Positions Unrealized Gain/Loss Sums (Global report across clients)

For more detail on using AssetBook for tax management and planning, click here do download the complete white paper.

 

How to assign multiple households to one InvestorView user name

It’s easy to assign multiple households to a single InvestorView username.  There are a number of reasons that advisors may want to do this.  For example, if an advisor is managing multiple households for a family and each of those households needs to be accessed by the primary trustee.

In order to accomplish this, simply choose each of the ClientID’s (your AssetBook household name), when registering a user.

From the main client list in the Administrator portal, click the Register button. Fill in the email (this is the username) and Display Name (which is how your client will view their own name in the portal).

Next, pick each ClientID to be attached to the username by picking each client from the drop-down list.

reg

The result will be that when the user log’s into the portal, there will be links to each household that is linked to the user.

You can also add a household(s) to a username that has already been registered. From the Administrator portal, click Clients, Registered Users and then the Clients tab.

Next, click the small arrow just to the left of your registered user, and then Update.

reg2

Finally, just add the households that you wish to assign to this username.

reg3

Save and you are all done.

Watch this blog for a follow up post on how you can also add multiple usernames (or emails) to a single household.

YOU CAN NOW SUBSCRIBE TO OUR BLOG!

⇐ Enter your email in the sidebar to receive an email every time we post.