May 18, 2017 // By Magenic
The client wished to far surpass the more generalized plans of the past that employed unwieldy, difficult-to-digest spreadsheets.
One investment firm came to Magenic for help in developing a unique application that could organize and manage customized investment plans for each client, factoring in myriad lifestyle choices and employing sophisticated analytics to determine how such choices should affect strategy. The client wished to far surpass the more generalized plans of the past that employed unwieldy, difficult-to-digest spreadsheets. The successful company had built a roster of loyal high-end clients and wished to provide them more detailed strategies than those provided by traditional Monte Carlo simulations. The long-used statistical method of predicting investment portfolio performance has been useful in the past, but critics believe it’s too limited to meet the needs of investors now demanding accurate projections that can adjust depending on individual needs over a lifetime.
The proprietary technology is as of yet unequaled in the industry, providing the client a significant competitive advantage.
A team from Magenic began with an unscalable app the client had attempted to develop on its own, and instead wrote code for a comprehensive investment program that far supersedes Monte Carlo capabilities. Investors can now sit down with an adviser from the firm and delineate the choices they intend to make throughout their lives, in effect mapping out their entire financial futures. College choice, projected children, vacation plans, retirement age, and estate planning are just some of the factors considered, as well as behavioral elements such as spending patterns. Analytics are applied to gauge the assets needed at different life stages under given circumstances, so investors can think about making changes accordingly. The new technology is expected to deepen relationships as clients become more engaged in executing their own lifelong plans. It will also reinforce the firm’s direct advocacy for its customers, offering documented proof it’s creating transparent plans customized to clients’ specific needs based more on their personal and professional goals and less on adviser opinion.