Andrew Altfest, CFP, President and CEO of FP Alpha and President of Altfest Personal Wealth Management, joined Keith Black, Managing Director of RIA Channel, to discuss how advisors can use technology to personalize portfolios that adapt to changing market conditions.
During his time leading an RIA firm, Alftest has noticed an advice gap. Clients want assistance with estates, taxes, and insurance planning, but most advisors don’t have the time or the team to provide that type of advice. At the same time, advisors are facing increased competition from robo-advisors in investment planning.
Altfest built FP Alpha to allow advisors to use AI and other technologies to summarize client documents, including wills, trusts, tax returns, and insurance policies. The system finds gaps and opportunities that advisors can share with their clients. The system can model scenarios for tax and estate planning, Roth conversion simulations, and the value of advice for improving client situations.
The entire financial planning process is being automated using AI, including gathering information and developing and implementing recommendations. Holistic financial planning will be made available at scale, providing insights to clients regardless of their wealth. Systems will be able to provide insights relevant to clients as their lives change, such as the potential for Roth conversions in years with lower income and alerts when wealth reaches the estate tax exemption level.
Advisors using FP Alpha may be able to grow their business by solving more complex problems for clients with greater levels of wealth. Altfest gives an example of how the platform improved the tax efficiency of an estate plan beyond the expectations of the client. Solving estate planning issues can provide advisors an opportunity to build relationships with the next generation of clients.
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