Calm Waters, Bold Stories

Unlocking Capital Efficiency for Advisors with Andrew J. Evans

In the podcast episode "Unlocking Capital Efficiency for Advisors," Andrew J. Evans, CEO of Rossby Financial, discusses strategies for financial advisors to enhance operational efficiency and profitability. He emphasizes the importance of leveraging technology to streamline processes, reduce overhead costs, and improve client service. Evans shares insights into how Rossby Financial has implemented innovative solutions to achieve net incomes as high as 95% after expenses, underscoring the potential for advisors to significantly boost their earnings through capital efficiency. He also highlights the firm's commitment to providing advisors with a platform that offers market accessibility, digital transformation, leadership, and acquisition opportunities, enabling them to focus on client relationships and business growth.

Basis Points: Taxation Without Added Value

Andrew Evans, Founder and CEO of Rossby Financial, critiques the growing trend of basis points taxation on advisors, arguing that it takes a significant portion of their earnings without offering substantial value. He points out that while firms continue to charge these fees, the services provided, such as technology platforms and compliance monitoring, are already accounted for in other areas. "If the firm is already using systems that track advisors' activities, there's no reason to charge additional fees," Evans explains. He believes that eliminating this "tax" would allow advisors to reinvest their savings into their business or enhance their client services, ultimately fostering growth and long-term success.

The case against the basis points tax for advisors

Andrew Evans, CEO and Founder of Rossby Financial, critiques the "basis points tax" imposed by firms on advisors, arguing that it disproportionately reduces advisors' earnings without providing corresponding value. He notes that these fees have increased from 0.05 basis points to 15-25 basis points, even as advisors' assets under management have grown. Evans questions the justification for these fees, suggesting that firms already monitor advisors' activities through existing compliance and technology systems. He advocates for more efficient fee structures, proposing that eliminating the basis points tax could enable advisors to reinvest savings into business growth, marketing, or enhancing client experiences. Evans concludes by urging advisors to critically assess the impact of such fees on their practices and clients. 

What new RIAs should look for in their talent

Josh Welsh's article highlights Andrew Evans, Founder and CEO of Rossby Financial, discussing the importance of prioritizing personality traits and cultural fit when hiring for new Registered Investment Advisor (RIA) firms. He believes that while technical skills can be taught, attributes such as demeanor, respect, and boundary-setting are crucial for building strong client relationships. Evans states, "For us, personality traits are more important than the technical aspect." He also highlights the need for advisors to align with the firm's collective goals, asking prospective staff if they're willing to "subjugate your own branding or ego interests to be part of this collective."

'I'll never recommend bitcoin,' advisor insists

Andrew Evans, Founder and CEO of Rossby Financial, takes a firm stance on Bitcoin, stating, "It's not an investment; I'll never recommend somebody invest in a currency. That, to me, is completely unnecessary." He emphasizes that Bitcoin currently lacks practical utility and does not hold long-term promise. For clients determined to invest in Bitcoin, Evans suggests using platforms like Robinhood or Tradeview independently while offering to incorporate these holdings into their broader financial plans. He makes on exception for ETFs that contain a basket of digital currencies, reinforcing that financial advisors are not "currency traders."

Alphathena and Rossby Financial Announce Strategies Partnership

Rossby Financial, an open-architecture registered investment advisor, has partnered with Rossby's advisors to utilize Alphathena's AI-powered direct indexing platform, providing clients with sophisticated, tailored investment strategies. Andrew Evans, CEO and Founder of Rossby Financial, emphasizes the firm's dedication to delivering innovative, tech-focused solutions to its advisors. He states, "We are committed to providing a tech-focused and customized experience for each advisor within our RIA and recognize the importance of partnering with cutting-edge technology solutions like Alphathena." This partnership reflects Rossby's mission to empower advisors with advanced tools, fostering independence and sustainable success for both advisors and their clients.

How much does it cost to go RIA?

Andrew Evans, CEO and Founder of Rossby Financial, shares his insights on the financial realities of launching an RIA. "Advisors need to recognize the difference between going independent and truly building a firm from scratch," Evans explains. He also highlights often-overlooked expenses, such as electronic signature platforms and E&O insurance, emphasizing that these costs are not just one-time investments but ongoing commitments essential to long-term success.

'I don't trust my financial guy.'

Alisa Wolfson's article highlights Andrew Evans, CEO and Founder of Rossby Financial, weighing in on the importance of advisor transparency and fees structures. "A 2% advisory fee is on the higher end, and clients should always feel confident in the value they're receiving," Evans explains. "Strong returns one year don't guarantee long-term success, so it's critical to evaluate performance over time and ensure alignment with personal financial goals." He emphasizes that investors should consider alternative options, such as a fee-only advisor or low-cost index funds, to maximize their wealth while maintaining financial security in retirement.

Choosing the name of your new RIA is "like getting married"

Josh Welsh's article highlights Andrew Evans, Founder and CEO of Rossby Financial, discussing the importance of choosing the right name for an RIA. Evans shares how Rossby selected a name that reflects its identity, values, and long-term vision. "...All that led us all the way back in time to a gentleman by the name of Carly Rossby, who is essentially the godfather of modern-day meteorology," said Evans.

Rossby adds Seeds to its wealth tech ecosystem

Rossby Financial, a rapidly growing RIA, has partnered with Seeds Investor to enhance its technology ecosystem. The collaboration enables Rossby's advisors to access Seeds' portfolio management tools, facilitating personalized investment services and reducing operational burdens. This partnership aligns with Rossby's commitment to providing innovative tech solutions for advisors and their clients.

Rossby Financial Partners with Seeds to Empower Advisors with Personalized Portfolio Management at Scale

Andrew Evans, Founder and CEO of Rossby Financial, speaks with Seeds' Founder and CEO, Zach Conway about their partnership to offer Rossby advisors a scalable platform for personalized portfolio management. This collaboration enables advisors to use data-driven tools to create investment strategies tailored to client preferences, helping them manage large client bases more efficiently while maintaining a customized approach. "Seeds is a powerful addition to our carefully curated tech ecosystem." says Evans

Can AI Tools for Picking Stocks Help Investors Beat the Market?

Andrew Evans, CEO and Founder of Rossby Financial, speaks with Money's Jordan Chussler about AI tools that advisors may use to help pick stocks. "The onus is on the [AI] company. Have they taught their machine to distill the information properly? The next question the individual investor should ask themselves is: 'Do I understand how this machine delivered this result, and am I comfortable with that result?" says Evans.

What Is a Personal Asset?

Andrew Evans, CEO and Founder of Rossby Financial, shared insight with U.S. News & World Report's Erica Lamberg about what personal assets are. "The difference between personal assets and business assets, especially when you're self-employed, revolves around ownership, use, and the purpose for which the assets are intended. Understanding this distinction is crucial for financial management, tax purposes, and legal protection," says Evans.

You Can't 'Legislate Good Behavior': What Advisors Really Think About The DOL Rule

Financial Advisor Magazine reporter, Ben Mattlin connects with Andrew Evans, CEO and Founder of Rossby Financial, about what advisors are thinking about the Department of Labor's new fiduciary requirements. "At one point barbers and surgeons were the same person. That split had to happen, and we as an industry are at that kind of evolutionary moment now," explains Evans.

Advisors Expand As Clients Ask For... Everything

Andrew Evans, Founder and CEO of Rossby Financial, speaks with reporter Karen DeMasters about the growing demand from clients to their financial advisors. "We want to bring family office services down to lower levels economically, so that advisory firms can increase their revenue. At the same time, we want to offer advisors a home they can bring their firms to if they want to step out of the business," explains Evans.

Rossby Execs Launch Marketplace for FinServ Freelancers

Andrew Evans, Founder and CEO of Rossby Financial, details the process behind creating ROffice, a freelance services marketplace where financial advisors can connect with virtual or "fractional" service providers, with Diana Britton at WealthManagement.com. "There's a lot of people out there that do want to work fractionally, do want to work remotely, and we've created a platform where they can market specifically to this industry," says Evans.

'Sit back, wait, panic?' A month ago, my adviser died. The firm he worked for can't yet find the $337,000 I invested with them. What's my move?

Chris Marsico, partner at Rossby Financial, responds to a Reader Scenario regarding a client account being lost after the death of their advisor with MarketWatch reporter Alisa Wolfson. "Ask to have your concerns escalated or speak to their internal conflict resolution team. Staying on top of this is the best way to kickstart action on their end," says Marsico.

Young advisors are making the move to RIAs, Rossby CEO says

Andrew Evans, Founder and CEO of Rossby Financial, details his personal journey in the finance world and explains the mindset behind starting his own RIA with Josh Welsh at InvestmentNews. "It's rewarding that these are the rules that I created, that the people that have joined me embrace those, and we collectively are going down a path of trying to change this paradigm of financial advice and how can we interact with people?" says Evans.

Young clients lead to riches

Andrew Evans, Founder and CEO of Rossby Financial, connects with InvestmentNews reporter Josh Welsh to share his insights on the most effective client services for younger generations and the approach that should be taken. "They like having an expert that can talk to them, not talk down to them, but really guide them through as to what they're going to be experiencing or what they are experiencing in their professional life, "says Evans.

How Your Practice Can Benefit From a Subscription-Based Model

Andrew Evans, CEO and Founder of Rossby Financial, explains how your practice can benefit from a subscription-based model in a piece for ThinkAdvisor. "For advisor contemplating the leap toward independence, subscription-based platforms can be an attractive options. The flexibility to tailor services to specific needs, without the fear of exponential cost increases, shows the model's appeal," explains Evans/ 

Rossby Financial Welcomes Three Female-Led Firms to the Platform

Rossby Financial, an open architecture RIA designed for independent advisors, announces the addition of three female-led firms to their platform. The firms include Red Oak Advisors, led by Jennifer Szeklinski, Life Strategies Financial Partners LLC, led by Kelly Renner CFP®, and EViE Financial Group, led by Melissa Reaktenwalt, AIF® CSRIC™. "Jennifer, Kelly, and Melissa are outstanding business owners and advisors with an entrepreneurial spirit, and I'm thrilled to welcome them to the platforms. As practice owners and advisors who are sommitted to reshaping the industry, they are a great addition to our platform and will be integral in shaping how we support advisors," says Andrew Evans, CEO and Founder of Rossby Financial.

Subscription-Based RIA Rossby Adds Three Advisors From Cambridge

Andrew Evans, CEO and Founder of Rossby Financial, speaks with WealthManagement.com's Ali Hibbs about the firm's recent additions to their platform, consisting of three female-led wealth management practices with a combined AUM of about $150 million. "It was time for a change. Most firms are just doing continuous improvements inside of the systems they already have, as opposed to biting the bullet when something doesn't work and saying, 'Let's burn it down and build a new one.' They may have put money into it, but if it's not working, get rid of it. The attitude I had was, 'why are we waiting around for these things? Why don't we just make it better?" says Evans.

It's a mad, Nvidia world

Andrew Evans, CEO and Founder of Rossby Financial, shares his thoughts on Nvidia's stock jump and the claims it is "the most important stock on the planet" with Josh Welsh at InvestmentNews. "At this level of their value, people are going to want to participate, but they might not be willing to pay that price for the stock. It might be the most important one, but do they have enough of a product line that you want to buy them?" says Evans.

Performance-based fees gaining ground among advisors, study says

Andrew Evans, CEO and Founder of Rossby Financial, discusses his unique approach and ideology on fee structures with InvestmentNews reporter, Josh Welsh. "When you embrace that, you are working in a very specific way of running money. You are specifically looking at every investment, looking for things that will absolutely grow, and things that you can get our of. For us, it's better to work off a general wealth management model, where, for the products and services that we provide, the client is paying a flat fee or a singular cost, like a tier or a breakpoint, and that's that," Evans explains.

Alphathena's AI-Enabled Direct Indexing Tool Scores $4M in VC Funding

Andrew Evans, CEO and Founder of Rossby Financial, speaks with WealthManagement.com's Ali Hibbs about Alphathena, an AI-powered software-as-a-service platform, securing $4 million in a venture capital funding. "We actually talked to them about coming on board as investors but the timing wasn't right, so I'm really happy to hear this. Amazing stuff. I would be surprised if someone isn't trying to buy them within two years," says Evans.

Lessons That Financial-Planning Courses Don't Teach (But Should)

Chris Marsico, partner at Rossby Financial, connects with Ben Mattlin at Financial Advisor Magazine to share some of the biggest lessons and skills he learned in his time as an advisor. "One critical skill that is often missed in training courses is the ability to understand clients. The best advisors have genuine insight into how people make decisions and how their life experiences influence those decisions," Marsico says.

Ensuring video testimonials comply with SEC's marketing rule

Andrew Evans, CEO and Founder of Rossby Financial, discusses Vidiance, a new video testimonial software in the RIA space, with InvestmentNews reporter Josh Welsh, highlighting how RIAs can benefit from the program in the wake of the SEC's revamped marketing rule. "This is a very solid way for them to get content made quickly that is impactful for the growth of their business. It's directly about them, their culture, and it brings advocacy for them," Evans explains.

2024 brings plenty of concerns for advisors

Andrew Evans, CEO and Founder of Rossby Financial, speaks with InvestmentNews reporter, Josh Welsh about the top concerns for advisors as we enter 2024. "How do I grow that AUM, pull in my clients and really remain a profitable business? To have any sort of growth, advisors will have to take the reins and compete against others. You have to make sure you grow that AUM, you really want to do it with those clients," says Evans.

What Veteran Advisors Wish They Knew Early In Their Careers

Chris Marsico, partner at Rossby Financial, speaks with Ben Mattlin of Financial Advisor Magazine about things that veteran advisors wish they knew when starting out in their careers. "All too often, we advisors act like we're just salespeople and not what we truly are, a business. Advisors who don't change their mindset from "salesperson" to "business owner," are typically unable to grow their businesses the way they want to," explains Marsico.

Advisors Reflect On Their Worst Mistakes

Chris Marsico, partner at Rossby Financial, connects with Ben Mattlin at Financial Advisor Magazine to discuss the importance of two-way communication and having an open mindset when dealing with new clients. "In order to make it as a strong advisor, listening is a skill you must hone," explains Marsico.