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Dynamic: Premium Held-Away Assets Service Completes the Client Financial Picture

August 22, 2021

With rapidly evolving capabilities in account aggregation, selecting the right solution just got a lot easier for advisors across the Dynamic network.

Dynamic has teamed with FeeX to make active management of held-away accounts such as 401(k), 403(b) and more possible, providing a new Premium Held-away Assets Service that gives advisors a window with a view of their clients’ complete financial picture. As a result, the Premium Service option brings greater value to the client-advisor relationship, allowing for better planning and improved financial outcomes.

Beyond expanding the advisor value proposition to clients, account aggregation also presents a growth opportunity for Dynamic advisors. According to FeeX, given the amount of assets held in 401(k)s alone, managing held-away accounts can increase a typical advisory practice’s AUM by an average 33 percent.

Through the FeeX seamless integration with Wealth360™, advisors can execute a sell, buy or exchange order without triggering custody, enabling advisors to actively manage some of their clients’ largest accounts, increasing revenue per household.

Case in point, 401(k) Specialist reports as of September 2020, Americans held $9.3 trillion in all employer-based, defined contribution (DC) retirement plans; $6.5 trillion was held in 401(k) plans alone. According to 401(k) Specialist, in addition to 401(k) plans, at the end of the third quarter 2020:

  • $575 billion was held in other private-sector DC plans
  • $1.1 trillion in 403(b) plans
  • $360 billion in 457 plans
  • $675 billion in the Federal Employee Retirement System’s Thrift Savings Plan (TSP)

“Dynamic has a wide range of solutions to meet advisors needs with aggregation,” said Eric Draughon, director of Dynamic’s Advisor Support team. “From simple Snapshot where you can get balance and positions, to the new, full-service Premium option, we’ve got advisors covered when they’re asking, ‘Can we aggregate this account and if so, how?’”

On the July Resource Call, “Account Aggregation: Why Do Advisors Need It?” Draughon discussed Dynamic’s five held-away assets service options. Click here for a breakdown of the range of services (from Snapshot to Premium), capabilities, common use case scenarios, costs and more.

Also on the call were FeeX guests Peter Nolan, director of strategic accounts, and Tim Su, senior partner engagement manager, who provided a tutorial of the platform.

Nolan discussed how FeeX supports the Premium Service option in spades, delivering client value and solving long-held challenges for both clients and advisors.

“There’s a tremendous amount of assets growing in these (held-away) account types,” said Nolan. “Over the next 10 years, this is going to be the biggest asset gathering opportunity for financial advisors…in the past the technology hasn’t been there for them to do it, but now it’s here and we’re proud to say that we can provide the service for Dynamic advisors and their clients.”

Dynamic CEO Jim Cannon noted, “If you want to be in the business of providing holistic wealth management to your clients, the Premium Service option ensures that you have all the information and access to the data that you need to make the best decisions for them.”

The advantages of account aggregation to clients go beyond centralized planning. In a Dynamic news release announcing the partnership, FeeX founder and CEO Yoav Zurel noted, “Studies show that professionally managed 401(k) accounts perform 3.32 percent better than individually managed accounts, net of fees.

“This can add 79 percent additional growth over 20 years for a client, even after accounting for costs. As life expectancy continues to increase, it is critical for investors to benefit from proper management and growth of their retirement accounts.

Dynamic investment advisor Urban Adams, an early adopter of the Held-Away Premium Service, shared his experience having watched the evolution of account aggregation over the past 10 years. from the beginning of his practice to grow organically:

“In the early years of my practice, many of my clients were in the accumulation phase of their investing lives, and I recognized the importance of aggregated outside accounts since many of those clients were participating in their company retirement plan, as an example, which often was their largest account,” said Adams.

He continued, “It forced me to seek out aggregation resources. Going from view only aggregation to full investment management access, and manual updating of information to fully integrated downloads. All of these improvements have helped me advance my practice and grow organically.”

For more information on the Dynamic suite of held-away assets service options and the latest Premium option through FeeX, submit a General Inquiry service request or contact Dynamic at (877) 257-3840 or joinus@dynamicwealthadvisors.com.

Investment advisory services are offered through Dynamic Advisor Solutions, LLC, dba Dynamic Wealth Advisors, an SEC registered investment advisor.