Outsource


The pandemic has forced many independent wealth management firms to evaluate their business. Our blog will summarize the pros and cons of many of the independent RIA firms I have talked to during The Crisis. While some solutions like a PPP loan seemed obvious there is no Silver Bullet. We will keep looking for the prize. 

Cost 

Our inboxes are filled with promotional free offers for a myriad of products. Outsourcing firms “appear” free but unlike the promotional offers in our inbox their services don’t have a renewal date. We need to be careful not to make our decisions based exclusively on cost. The siren song of free needs to be ignored when considering outsourcing. Outsourcing can help us lower our costs, but the cost tail should not wag the RIA dog when we chose an outsourced firm. 


Expertise

Dr. Fauci knows more about COVID than most. The experts we hire know more about their services that we do. How can we be sure?  Our experience is to ask for references and to ask the outsourcing firm numerous questions before we commit.  One thing that the Pandemic has proven is that China can produce items without Social Distancing. However, Ross Perot’s warning about outsourcing was correct. I can hear the sucking sound. 

Speed

We need to upgrade our services now before a vaccine is discovered. Outsourcing can help if we do our homework. Price should not be the final determinant. Our RIA fees are worth it and so are good outsourcing firms. DIY feels good until it fails. Our customized solutions need the help of an outsourced expert. 



My friend and business partner challenged break-away advisors to take off their employee hat and put on a business owner hat. The pandemic encourages us to take off our “know it all” mask and replace it with our humility mask. 

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