Monthly Archives: November 2021

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15. Ric Edelman Looks To the Future



In this episode, David Armstrong is joined by Ric Edelman, founder of Edelman Financial Services (now Edelman Financial Engines) and the Digital Assets Council of Financial Professionals. Edelman discusses how he founded his firm with a focus on middle class savers when every other advisory firm was only looking for HNW clients, and grew the business $22 billion in AUM before merging it with Financial Engines. Stepping away this year from the firm he founded, he is now focused on investments based around technologies that he says will transform our lives, including blockchain, genomics and artificial intelligence, and is on a mission to educate financial advisors about cryptocurrency.  

Ric discusses:

  • How his earlier career as a journalist helped set him up for success as an advisor and entrepreneur. 
  • His views on the “holier-than-thou” critics of advisory fees based on AUM. 
  • Why he thinks this is the right time to step away from Edelman Financial Engines, even as he remains the largest individual shareholder. 
  • Why he convinced Morningstar and Blackrock to partner with him in launching the iShares Exponential Technology ETF (ticker: XT), the first of the thematic ETFs focusing on transformative technologies. 
  • How most financial advisors are failing in their fiduciary duties by ignoring the rise of Bitcoin and other cryptocurrencies as a new asset class. 
  • Why he created the Digital Assets Council of Financial Professionals.

Connect With Ric Edelman:

Connect With David Armstrong:

About Our Guest:

Ric Edelman co-founded Edelman Financial Services with his wife Jean in 1986. He sold a majority stake to Sanders Morris Harris Group in 2005 and merged the firm with Financial Engines, to become Edelman Financial Engines, in 2018. He helped Morningstar create the Morningstar Exponential Technologies Index from which iShares launched the Exponential Technology ETF (ticker: XT). He founded the Digital Assets Council of Financial Professionals to educate the financial services industry about cryptocurrency and blockchain technology. 

 


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14. How To Invest Sustainably with Jay Lipman



Clients largely respond positively to values-based investing—when it can be explained to them. 

In this episode, David Armstrong is joined by Jay Lipman, co-founder of Ethic, a direct-indexing investment platform for advisors. Ethic can demonstrate to clients how to construct portfolios that reflect their values, or demonstrate how far their current portfolios are from their personal ideals. Jay shares how Ethic provides advisors with comprehensive data about each company’s impact on different social and environmental issues.

Jay discusses:

  • How Ethic helps advisors dig deep into data based on the values and priorities of the client
  • The biggest hurdles advisors face when it comes to sustainable investing.
  • The trade-offs between “off-the-shelf” ESG portfolios and customizable portfolios when it comes to values-based investing.
  • The trouble with data and standardization when it comes to current ESG investing.
  • Why investment impact is an area where many investors want more information.
  • How Ethic’s founders started the company and the technology incubators and early investors that supported them.

Connect With Jay Lipman:

Connect With David Armstrong:

About Our Guest:

Jay Lipman seeks to understand and simplify sustainable investing, climate change, human rights and how investing can be a driver of positive change.

At Ethic, the mission is to accelerate the global transition to sustainable investing. Jay works closely with investors to help them understand and craft their unique approach to sustainable and impact investing.

Jay has been named to Forbes 30 Under 30.


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13. LPL’s Tom Murphy on the Firm’s Efforts Toward Modernizing the Advisor-Client Relationship



In this episode, David Armstrong is joined by Tom Murphy, senior vice president of LPL’s advisory program. Tom discusses how LPL has augmented advisor services while the industry has evolved from facilitating transactional relationships with clients toward a more holistic planning approach, with all the inefficiencies and customization that requires. He gives an insider look into how LPL is arming advisors with investment and planning platforms to.

Tom discusses:

  • How LPL has helped advisors transition their relationships with clients.
  • What types of client investments fit best in a traditional brokerage service.
  • Why LPL’s model wealth investment platform is growing twice as fast as LPL overall.
  • How advisors are using LPL’s investment platform to customize portfolios for clients with a combination of sleeve-based models and the advisors’ portfolio decisions. 
  • LPL’s advice, and tool, for advisors looking to use digital marketing platforms for growth. 
  • How advisor technology does not have an innovation issue, but rather an adoption issue, and how it is incumbent on the platforms to help advisors better use the tools available to them.  

Connect With Tom Murphy:

Connect With David Armstrong:

About Our Guest:

Tom Murphy currently serves as Senior Vice President of LPL’s Advisory Programs within the Wealth Management Solutions team.  In this capacity he is responsible for the management and strategy of LPL’s fee based investment programs.  This includes the programs’ investment offering, technology capabilities and pricing.  Prior to this he has held a variety of investment product and advisory roles at LPL.
Mr. Murphy joined LPL Financial in 2006 from Wells Fargo where he held positions in both finance and investment product management.  He served on LPL’s Finance team for five years prior to joining the Wealth Management Solutions team ten years ago.
Mr. Murphy has a Master’s of Business Administration from the Walter A. Haas School of Business at the University of California at Berkeley.  He also has a Bachelor of Science in Commerce from Santa Clara University.

This podcast is sponsored by LPL.