The good news: You’ve grown to a level of real success as a financial advisor.
The bad news: Scaling to the next level from here is really hard.
We know. We’ve been there. We’ve worked with more than 1,000+ advisory firms to help them get to the next level of scale. Maybe it’s more time to do financial planning with your clients. Or more time to go get new clients. Or just more time for yourself.
Let our scale become your scale.
“In 2020, I was faced with my own decision of choosing a new firm to affiliate with for the first time in 17 years, to get to the next level of scale in my own business. Given the success of our Kitces platform, I could have called anyone in the industry. But I only made one phone call: to Buckingham.”
-Michael E. Kitces,
MSFS, MTAX, CFP®, CLU, ChFC, RHU, REBC, CASL,
Head of Planning Strategy, Buckingham Wealth Partners
*As of September 30, 2023, BSP had $10.38 billion of discretionary regulatory assets under management and $13.88 billion of non-discretionary regulatory assets under management. In addition, BSP provides administrative, back-office and retirement plan services to $13.60 billion of assets managed or advised by the independent firms that hire BSP for its services. In the aggregate, the total number of assets under management or administration was $37.86 billion.
The traditional view is that growing a big firm means hiring up a lot of staff – that you then have to manage as the owner, at the risk of taking your time away from serving clients and growth.
But it doesn’t have to be that way. Dan Goldie is an advisor that achieved the ultimate level of success – nearly $1B of AUM, as a true solo advisor – by focusing 100% of his time on serving clients, and letting go of everything else to a TAMP that did all the work of scaling up for him.
Author: Michael Kitces, “Why TAMPs And Outsourced Investment Management Are The Future For Most Advisors”
“In recent years, a new kind of TAMP adopter has emerged – the holistic financial planner. While in the past TAMPs were primarily the domain of asset-gatherers (who freed up their time to get more clients into the TAMP), for those who are paid primarily for their financial planning services, a TAMP can make a lot of sense as a means to stay involved in the investment process, but not have to be that hands-on with the portfolio. As a result, we’ve seen the rise of some ‘simpler’ TAMPs that focus on [low-cost] ETFs or DFA-oriented mostly-passive portfolios, relying on their service and technology as a differentiator, rather than their investment results.”
As one of DFA’s largest TAMP, Buckingham’s Evidence-Driven Investing™ process starts with smart factor-based diversification, low-cost, and tax-aware investments. But it doesn’t end there. Our investment team does its homework to dig even deeper into ways to save clients’ money, from leveraging asset allocation to further minimize tax costs, to even building individual bond ladders where appropriate.
“Buckingham has become an extension of the team and the client experience is enhanced by having the resources and support that we do within the Buckingham community.”
Jared Siegel, BFA™, CEPA®,
Partner at Delap Wealth Advisory
Click here to listen how Jared has enjoyed the benefits of outsource in Michael Kitces’ Financial Advisor Success Podcast.
The typical advisory firm that has crossed $1M of revenue spends 34% of its revenue on overhead, but the cost drifts above 41% of revenue as firms scale up above $10M of revenue, because of the investments into the staff infrastructure it takes to grow.* Scaling up is expensive.
Because of the scale it’s already achieved, with more than 1,000+ advisors and $37.86B** of assets under management, Buckingham’s fee schedule for its full suite of investment management, technology, and back-office management starts at just 30 basis points, scaling down at $50 million practice sizes.
*Source: 2021 Investment News study of Profitability & Pricing
** As of September 30, 2023, BSP had $10.38 billion of discretionary regulatory assets under management and $13.88 billion of non-discretionary regulatory assets under management. In addition, BSP provides administrative, back-office and retirement plan services to $13.60 billion of assets managed or advised by the independent firms that hire BSP for its services. In the aggregate, the total number of assets under management or administration was $37.86 billion.
We recognize that it’s a big investment to begin outsourcing. Every advisor we work with involves a 2-year conversion plan with most advisors realizing scale and efficiency almost immediately.
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