Most RIAs have grappled with the question of how to manage small accounts in a way that is efficient and profitable. In its latest Trend Advisor paper, “Small Accounts, Big Opportunities,” Trust Company of America addresses some of the common challenges of handling small accounts and offers suggestions on how to manage them more efficiently. Gordy Wegwart, President and CIO of Verity Asset Management, discussed the Trend Advisor paper and best practices for small accounts as part of a recent Genius Session.
40% of the Genius Session attendees cited portfolio management as the biggest challenge around small accounts, while one-third said they struggle with how to determine the minimum account size to accept. The poll findings are consistent with what we know about the advisor industry: 55% of advisors said portfolio management was their most time-consuming activity, according to the most recent AdvisorBenchmarking RIA Trend Report from WealthManagement.com—and small accounts can be just as time-consuming as large ones.
So what’s an advisor to do? Gordy and other advisors polled by TCA offer common pieces of advice:
The right strategies can make managing small accounts not only more efficient, but more profitable too.
“In the first 3 years after we implemented TCA’s technology, small accounts were the most profitable segment of our business,” said Jerry Wagner, President and Chief Information Officer, Flexible Plan Investments, Ltd.
To learn more about TCA’s technology and how it can help you manage small accounts, call 1.800.955.7808.