Rich Romano, CEO of FIDx, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how advisors can manage client assets in accounts containing insurance products.
FIDx is an independent company that powers Envestnet’s insurance exchange. FIDx was founded with the concept of bringing insurance products into the advisor’s portfolio. The insurance account can sit next to a client’s account in a UMA, SMA, or advisory account. Advisors can manage the assets as they always do, and FIDx can wrap the protection or income benefits of the insurance products around the account.
The FIDx technology enables full connectivity between the custodian, wealth platform, and insurance carrier, providing advisors with comprehensive reporting in one place. This can allow advisors to proactively consider which clients could benefit from adding guaranteed income or defined outcome options to their portfolios. As an overlay, the insurance products can be added without requiring the sale or transfer of assets that would trigger substantial capital gains taxes.
FIDx is integrated with Envestnet, Fidelity, iCapital, and a number of other platforms, allowing advisors across the industry to benefit from the integration of insurance products in client portfolios.
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