The Role Of A Turnkey Asset Management Program In Your Career As A Financial Advisor

With so much to learn in your career as a financial advisor…here is another.

Turnkey Asset Management Programs (TAMPs) were initially introduced in the 1980s as a way for financial advisors to outsource investment management tasks and better streamline their workflows. While they have changed and evolved over time to offer more to advisors, one thing that remains is their ability to further enhance investment capabilities and provide personalized solutions for clients.

In addition to support to focus on revenue-generating activities at Consolidated Planning, utilizing TAMPs can help you build your practice more quickly and efficiently by giving you more time back in your day for other client-facing activities. 

Here we will help you understand the role of TAMPs and what your relationship with this model might look like, the benefits of TAMPs, and the option to build and manage your own investment portfolios all to help you decide if utilizing a TAMP will help you scale your practice faster.

 

What Is A Turnkey Asset Management Program And Why Are They Standard In The Investment Management Industry?

A Turnkey Asset Management Program (TAMP) is an outsourcing solution designed to help financial advisors manage client investment portfolios efficiently and effectively. 

This solution is turnkey for a reason; it’s built to be simple for the advisor by outsourcing:

• Securities Selection: Picking and choosing which stocks, bonds, and funds to buy.
• Management of Investment Tasks: Handling the day-to-day outlook on those selections, including trading, rebalancing, and performance reporting.

What you’re essentially doing when implementing a TAMP is outsourcing the tactical decisions and solutions to a manager whose unique ability is constructing and managing investments. And likely managing them better than you could.

So, how does a TAMP help you build a better practice?

 

The Benefits Of Implementing Turnkey Asset Management Programs In Your Career

A TAMP allows you to solely focus on learning what your client wants without knowing the process to get them there.

But using a third party Turnkey Asset Management Program doesn’t mean you’re entirely off the hook when it comes to your client’s investments.

Nor should you want to be.

While a TAMP will actively manage your clients portfolios, those decisions first sprout from knowing your clients preferences. This requires you to develop a relationship with the TAMP providers that you plan to use for investments.

Advisors at Consolidated Planning have access to existing partnerships built between senior advisors and varying TAMP providers, vendor management if you will, that best fit your clients expressed goals. These goals include:

• Risk tolerance: As part of the planning process, clients will submit responses to their risk tolerance questionnaire. 
• An analysis of their current accounts: Do these make the most sense for the goals expressed by the client? Do these match up with their risk tolerance questionnaire? Is it possible for these accounts to even simply transfer over?

But, it doesn’t stop there. Just like planning for your client is an ongoing process, managing investments requires constant attention, evaluation and due diligence for you and your clients. This is why utilizing TAMPs are a huge benefit to your practice.

 

#1 TIME SAVING 

Time is something we talk a lot about in a financial advising career. Time seems to be something you never have enough of and is definitely something that can’t be wasted. 

Managing your client’s investment portfolios takes a good deal of time for a few reasons:

• Learning products
• Investment research
• Portfolio allocation

And because the majority of your time should be spent in front of your clients and prospects, not behind a computer, a TAMP saves you time.

Less time spent on non-revenue generating activities and more time spent building your practice.

Ok, yes, investments technically generate revenue for you, but if someone can manage that aspect of your practice for you (and for a reasonable fee) why wouldn’t you implement that?

TAMPs allow you to streamline the investment portion of your business and ultimately, implement better solutions and better outcomes for your clients.

And satisfied clients are what your thriving practice is made up of.

 

#2 INSTITUTIONAL QUALITY STRATEGIES

Speaking of better solutions, TAMPs help you provide the very best asset management for your typical household or client that you serve.

Institutional-quality investment strategies typically refers to large institutional investors such as endowments and foundations where experienced teams design strategies to better generate competitive returns all while managing risk.

TAMPs give you and your clients access to these strategies. Regardless of how big or little the dollars invested are, each portfolio is managed with the same style and substance as the other.

 

Can You Build And Manage Your Own Investment Portfolio As A Financial Advisor?

Building and managing your own investment portfolios is completely viable as a financial advisor. But, there are likely only two reasons you would consider managing your own portfolios:

• You’re really interested in this aspect of the business and want to take the time to learn it
• You’re really great at it

But, if those are true, do you really want to be a financial advisor? Or do you want to be an investment manager?

However, if you think you can do this better than the best asset manager and are willing to allocate the time all while servicing your planning clients you need to consider the risk.

From a risk standpoint, being the financial advisor and portfolio manager makes you the fiduciary overseer of the investments themselves. This can put two things at risk:

• Your client-advisor relationship if they are unhappy with the results
• The counterparty risk if you’re not upholding your due diligence

 

Choosing The Right Turnkey Asset Management Programs For Your Career

In order to grow and scale a financial advisory practice, making the best use of your time each day is essential. Essential.

Utilizing a TAMP for investment management services can give you back valuable time that you can spend deepening your client relationships and building your practice.

The next question is, which TAMPs will you use in your career? With so many TAMPs within the market, ask yourself these questions:

• Which TAMP best aligns with my target market’s goals?
• Which TAMP does my firm have existing relationships with?

The good news is, advisors at Consolidated Planning don’t have to decide the best investment managers for their clients by themselves. Just because you work for yourself, doesn’t mean you work by yourself.

If you’re striving to provide a high level of customer service, it’s only right that the TAMPs you utilize should provide an equal level of service as well.

Reach out to our recruiters to discuss other ways we help you provide the very best to your clients.

 

 

2023-154949 Exp. 4/2025