Welcome, everyone. My name is Ryan Lestrange. I'm a senior vice president of Orion, responsible for all the great wholesalers we have supporting you in the field for the eastern US. I'm excited to be here with you today. To talk about something obviously means the world to us that Orion really could consider it the genesis of our business and that is. About the power of outsourcing, right, how it can help you as an advisor create better outcomes for not only your clients, but your business as well. And specifically today, we're going to talk about the value of an advisor, right? What you do that creates it and then we'll look at it in the context of time. Are we spending our time in the right way? And if we were to outsource some of the tasks and responsibilities that we've got on our plate, what it might mean for? Our clients and our business, now I've got to say before we start, while the industry uses the term outsourcing, we don't, Ryan, don't really feel like it fully describes what we do when we engage with our advisors. Personally, when I hear the term outsource, I think of my dry cleaning or when I'm traveling and it snows a foot here in Chicago, the great people that come and take care of the driveway so that my wife and daughters can go about their business. Right. That's outsourcing. Here at Orion, we believe that we partner with advisors, we take our respective strengths, we combine them and we find ourselves with the result where the sum is greater than its parts. So while you'll hear and see the term outsourcing throughout our conversation today, what I hope you think about is the power of a great partnership and again, what it means not just for your clients but for your business. And so with that, I think there's really only one logical place to begin and that is to quantify just how valuable you as a financial advisor are. Now in front of you, you've got statistics from 3 pretty different companies, right? Aon Hewitt and the consulting space, Morningstar, obviously from the asset management research side and then Vanguard and what's interesting, independent research conducted by these firms, all resulting in the same conclusion. And that is you are very valuable, as much as 3% a year after fees added to client accounts. I think probably all of us are familiar with Einstein's famous quote around compounding it being the eighth wonder of the world. I think he said something like those who understand it will benefit, those who don't will pay it well. What does your 3% really mean to a client? We wanted to take a look at it in the context of some data that we know exists. So on the left hand side you've got numbers from the DALBAR study. If you're not familiar with Dalbar, it's absolutely worth a read. But what they've done for decades now is track the returns captured by do-it-yourself investors, right, which is to say individuals without a financial advisor versus the markets. You can see that the delta is significant, the markets returning over 10% in this particular period and that individual investor capturing less than 4%. Now what happens if we apply that 3% advisor Alpha figure from Vanguard? Well, essentially over the course of 30 years, you are going to double the amount of wealth in individual has. For me, I think about it often in the context of retirement. And if you're an individual and you're looking at retirement, the question becomes what am I going to do? How am I going to live my best life, right? What's the result of all my years of hard work? And if you look at what you're able to do with 900,000 versus almost 1.8 million, but you see two very, very different versions. Of retirement. Now it's worth noting that while the research done by all three of these companies is impeccable and valuable, it is theoretical, right? We didn't follow or vanguard rather didn't follow individuals over time and and actually look at what their account balances were. The good news for us is that the Investment Funds Institute of Canada did. So this is real data. This was actually referenced in our. Chief behavioral officer Doctor Daniel Crosby's 2018 best seller, the behavioral investor, the Investment Funds Institute of Canada actually looked at two groups of people and tracked them out, I think for more than 20 years. And what you can see is that almost immediately, right within four years of engaging with a financial advisor, those individuals had more than 1 1/2 times the wealth of their no advice peers. And the value of that advice right the the relationship with the financial advisor. Grows overtime and as we get out to that 15 year range, you have the individuals who've retained a financial advisor with 2.7 three times the wealth of their no advice peers. For me, I take that back again to your retirement, right? The difference here would be retiring with $1,000,000 in the bank or $2.73 million in the bank. What is the difference? What would that allow you to do the things to experience the legacy you might get to leave for the next generation. It's powerful. And so for you as a financial advisor, we have to know and we have to be confident. The fact that you create real wealth, everything that you do adds dollars and cents to clients bottom lines and changes what their account balance is, you know today and and where it'll be in the future. But I think what's it's also worth noting is that's not all right. That's not the extent of the value you create. This is another study referenced in Doctor Crosby's book, The Behavioral Investor. And the statistic that I find most powerful is the one on the left. So the individuals in this study were asked the question, do you have Peace of Mind? And now Peace of Mind is defined as a mental state of tranquility or calmness devoid of anxiety or worry. And so that's just waking up really, and feeling good about life on a day-to-day basis. And you can see. The difference between individuals with a financial advisor and those without, right? You help people feel better when they wake up in the morning, right? You give them Peace of Mind. That's incredibly valuable. There's a number of studies out there about the impact of stress and worry on your physical well-being. I would say it's fair to say that you actually have an impact on people's physical health as a result of what you do, and I'm not even going to reference the question there regarding. Preparedness for retirement, the difference there speaks for itself. The question that we need to ask ourselves is where is this alpha coming from? What are the things that we do that drive this additional value to our clients? And so we dig a little bit deeper into Vanguard's Advisor Alpha study and what you'll see with the chart in front of you is certainly things like rebalancing the securities you choose, asset allocation, you know they add value, but it's really on the margins. 2/3 or 200 out of the 300 basis points that Vanguard says you add to clients each year comes from behavioral coaching. Which is really to say, the conversations that you have, the frequency with which you communicate, the discussions around financial planning, that is where the majority of this value comes from. So we then need to take a look at how our time is spent and the next question is, are we maximizing our time both for our clients benefit and that of our business? But we asked you, the data in front of you comes from a study done by us here at Orion. And I think there are a couple of really salient points that come out of it. One, you've got a lot on your plate. There are a number of responsibilities that fall under your purview. And as a result, we don't have a tremendous amount of time to allocate to any one of them. Now for me, when I first saw this data, I was struck by the idea of separating it out. Right. And the idea is we could kind of break these tasks out into two buckets, one bucket. Of the tasks and responsibilities that you could entrust to a great partner. And there are the tasks and responsibilities that only you as the advisor can handle. Interestingly enough, they line up pretty perfectly with what we just saw from Vanguard. Things like client meetings, relationship building, prospecting for new clients and financial planning that can't be handled by anything by anybody else, right. Those are things that you need to do for your clients and for your business. And they're also, as we just saw, the most valuable things when it comes to your clients. Your business, right? So the MarketWatch and updates, investment management, execution practice management, administration, these are things that a great partner will happily handle on your behalf, which frees up your time to focus on what we know is most value. Now I don't want you to simply take our word for it. We went out and looked across the industry, some of our our colleagues and other firms and they're finding the same thing. For reference 2020 study done by BlackRock, they interviewed advisors really post COVID and they found that 92% of advisors who outsourced. Partnered with a great firm found that they actually had improvements in their business, right? Over 70% of the advisors that Black Rock spoke with found that they had more time to engage with clients when they weren't necessarily worrying about portfolios. And nine out of 10 advisors in that study found new business as a result. Similarly, Fidelity's Investor Insight study, they found that the top reason that individual investors thought about leaving an advisor was because they wanted someone who engaged with them more often, right? Someone who's time was focused in the right areas. Interestingly enough, that same study done by Fidelity found that nearly 2/3 of investors wanted behavioral coaching from their advisor. So whether it's your fellow advisors out there in the field or the investors that you're hoping to work with, the data is pointing us in the direction that having a great partner and refocusing our time could be very valuable. We're going to take a look at a fairly specific example, right. This comes from that same study we did it Orion regarding the time our advisors, the time you as advisors spend on on different tasks, this one around obviously a very prominent topic in our business which is tax efficiency and the question was? You know, really, how much time are you spending being tax efficient for clients, right? Whether that's monitoring where a client account is relative to capital gains threshold, whether it's actively going through portfolios and and doing tax loss harvesting. While there was a wide range of responses, you'll see that the majority of advisers said it was about 12 hours a month. The question that I want you to be asking yourself is what would I do with an extra 12 hours a month? Now that is 3 rounds of golf, but I think we need to think about it in terms of our business, if you were to partner with Orion, right, and take advantage of our custom indexing suite of separately managed accounts, their daily tax loss harvesting overlay, the ability to set a capital gains budget to customize the tax situation for every client. You might find as much as twelve additional hours a month to dedicate towards building client relationships, behavioral coaching, and prospecting for new clients. To this point, we've heard from a number of prominent financial firms, right vanguard, Aon Hewitt, Morningstar, BlackRock, Fidelity. We've heard from your fellow advisors. We've heard from the investing the the investing public. I mean, I'd like to take a deeper look though at one particular cohort and that's the high net worth investor, right. We know this to be a trillion plus dollar opportunity in the coming years and it's interesting to to understand what they expect out of a financial advisor and largely it aligns with what we know to this point. So the data in front of you comes from McKinsey worth taking stock of just how highly responded to these data points were. Nearly every participant in the study identified with these data points, and I think that's really because they are, they are so connected. But the take away is really this, that the high net worth investor does not expect their advisor to be an expert on everything. In fact, they prefer that you were, you were an expert on one thing and that's them, their family, their goals, the way they want to live their lives around that they expect the advisor to build a network of subject matter. Experts. People who they can entrust to take care of administrative tasks, investment related tasks, and provide insights that the advisor and the high net worth investor then use to formulate their plan and their next steps. Much like looking at Orion's custom indexing solution and the impact it has on being tax efficient, the time that frees up Orion's high net worth solution, what we call wealth advisory does something similar for you as the advisor, giving you dedicated resources through three distinct phases of acquiring high net worth client, designing a custom portfolio and then finally delivering a white glove high touch service. Over time, you as the advisor are going to have dedicated individuals, CF Charter holders to help you win, retain and grow high net worth investors. Effectively building that network that we know McKinsey says, is what the high net worth investor is looking for. So in closing, I'd like you to take a second and think about yourself and think about all the hard work you've done over these years to build your business while you have served your clients and built well for them. You've also built something of great value. And the last question really has to do with whether or not you're maximizing the value of the business you bought. Because the simple fact is that by partnering with someone like Orion, streamlining your processes, helping client portfolios be consistent and frankly portable, you will maximize the value of your business when the time comes for you to start thinking about enjoying that. Next phase of your life. So I want to thank you all for spending time with us here today. We had Orion value your business very, very much under incredibly proud of the partnership that we built with you. Thank you. Have a great day. _1696237364099

How Outsourcing Can Help You Grow Your Business

Why are you only spending 50% of your time with clients*? Investors, particularly high-net-worth investors, are demanding more personalized services now more than ever. But, your day is spent on administrative tasks, investment management research, and portfolio construction.

Join Ryan LeStrange, SVP, Divisional Sales Manager, to hear how outsourcing key aspects of your business can help you get back to doing what you do best - growing your client base and taking your practice to new heights.

*Source: Cerulli Associates – U.S. Advisor Metrics Orion Portfolio Solutions, LLC a registered investment advisor. For financial professional use only. Not intended for public distribution.