When BlueStem Wealth Partners decided to transition to a 100% fee-based model in early 2023, Managing Partner Scott Marquardt said it was not a decision he took lightly.
Marquardt was confident the move to “true independence” would allow his team to serve clients better, but he needed to figure out how to make it work financially for the firm. One sticking point was their annuity book of business. While admittedly not a “super heavy annuity firm,” he was doubtful they could bring much of their annuity book with them.
“Many of our clients’ annuities had living benefits, and we thought those would not be coming with us. As we started our move, we were writing those off,” said Marquardt.
The Business Challenge
Acknowledging “we didn’t know what we didn’t know,” BlueStem did their homework to evaluate possible resources to help them navigate their transition and ensure their success as a fee-based RIA. One of their first decisions was to use SS&C’s Black Diamond® Wealth Platform, where they were introduced to the Advent Insurance Marketplace Powered by DPL (AIM) and the Breakaway Accelerator Program. “We did our due diligence, and we just kept coming back to AIM because of the service, structure, and the technology,” said Marquardt. With AIM, BlueStem brought their annuity book under their fiduciary management and now offers fee-based annuity solutions to their clients as a true independent.
SS&C’s Solution
With AIM’s technology, BlueStem successfully transitioned over 100 annuity contracts from their previous broker-dealer, describing the process as “very enlightening and very efficient.” Marquardt stated, “There is no possible way we could have transitioned the number of contracts, and done the analysis to make sure it was better for the client, handled the paperwork…AIM has taken a huge load off of our firm. We’ve transitioned $20M of annuity assets in five months; that’s the maximum we thought we could transfer. With AIM, I think we’ll triple that.”
The Results
AIM’s annuity marketplace and technology, combined with the Black Diamond integration, is proving to be a game-changer for BlueStem. The synergistic combination streamlines operations and enhances BlueStem's ability to optimize client outcomes and navigate complex financial landscapes efficiently and accurately. This integration represents a pivotal advancement, empowering BlueStem to deliver enhanced value and service while managing their clients’ financial needs effectively.
“The variety of product options that we’ve learned about from AIM, and the features and benefits for our clients, for our clients are huge reasons why real independence has benefited our clients and the firm.”
FOR MORE INFORMATION
For more information on how to grow your business and deliver better client outcomes with the Advent Insurance Marketplace, contact the AIM Consulting Team at 1-888-680-0830 or email us at AIM@dplfp.com.
