Rebalancing is one of the most important tasks performed by financial advisors. But in an increasingly complex world where markets are moving faster, clients are not the only ones who need guidance. Advisors need solutions to overcome roadblocks that impede their ability to provide the best service to their clients. With the right technology, advisory firms are able to reduce the time needed to rebalance portfolios, as well as manage tax and risk more effectively.

In today’s episode, Jack talks with Damon Deru, CEO and Founder at AdvisorPeak and Senior Product Director at Addepar.

Damon started his career as a registered investment advisor where he manually rebalanced and traded hundreds of clients’ portfolios using Excel spreadsheets. Frustrated by the lack of affordable and intuitive options in the market, it was in this role where the idea of a customizable robust portfolio rebalancing system was born. Damon relinquished his role as an investment advisor to focus his efforts on building the most innovative rebalancing software for the financial services industry.

Damon talks with Jack about the evolution of AdvisorPeak, how rebalancing software can be a powerful tool for managing client portfolios, and why it is highly beneficial to the firm, their advisors, and their clients.

Key Takeaways

[01:17] - What inspired Damon to create AdvisorPeak.
[04:10] - The reasons for Addepar's acquisition of AdvisorPeak.
[05:35] - What separates AdvisorPeak from other rebalancing software providers.
[7:46] - The complexity of managing portfolios.
[10:52] - How the partnership between LifeYield and AdvisorPeak can benefit advisors.
[14:41] - Managing portfolios in a tax-smart and risk-smart way.
[16:16] - Asset allocation vs tax-loss harvesting.
[17:40] - Where the world is going for AdvisoryPeak.
[20:54 ] - Damon’s key takeaways.
[23:00] - Interesting things Damon does outside his job.

Quotes

[9:14] - "This is something the software does very well. Once you build in all the rules and the analysis, it can calculate all the information very quickly. A click of a button can rebalance hundreds or thousands of accounts in a matter of a few minutes." - Damon Deru

[21:31] - "If you're not using rebalancing software, you're also probably not looking at things from a unified managed household perspective as well. This is real-world savings that you can bring to your clients by looking at things on a household basis and trading tax efficiently." - Damon Deru

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