With algorithms and awkward questions, an ex-PIMCO 32-year-old crashes the RIA business

Totum is a game changer. Algorithms are not terribly expensive nor terribly complex to manage, the marketplace will reward those most adept at adding value which is where Totum comes in. You have to love their fixed pricing at $249 per month, far better than a TAMP taking an outsized share of the advisors fee in basis points. The difficult part in advisory services is winning client assets. Why would an advisor pay a premium for the mechanics of a TAMP which are easily replicated at a modest fixed cost. Investment product access is a commodity. The advisor is the premium value proposition, not the tools they use. We all are discovering inexpensive ways to add value, with the advisor keeping the lion’s share of the revenue. The cost of algorithmic advice will greatly decline reflecting the evolution to advisory services where advisor margins become a more important consideration than broker payout.

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Stephen Winks

I agree with Zhang. There is much more to analyzing a client. Riskalyze is garbage! There is nothing mathematical or any algorithm behind this product. It’s a compliance issue if you ask me. It’s like going to the doctor and not having him take blood, but telling you, you have a disease. Totum and Capital Preferences are game changers.