When BlueStem Wealth Partners decided to transition to a 100% fee-based model in early 2023, Managing Partner Scott Marquardt says it was not a decision they took lightly.
They were certain the move to “true independence” would allow their team to better serve clients, but they needed to figure out how to make it work financially for the firm. One sticking point was their annuity book of business. While admittedly not a “super heavy annuity firm,” they were doubtful they could bring much of their annuity book with them.
“A lot of our clients’ annuities had living benefits and we thought those would not be coming with us. As we started our move, we were kind of writing those off,” said Marquardt.
Putting Together a Winning Team
Acknowledging “we didn’t know what we didn’t know,” BlueStem did their homework to evaluate possible resources to help them navigate their transition and ensure their success as a fee-based RIA.
One of their first decisions was to use the Black Diamond wealth management platform, where they were introduced to the Advent Insurance Marketplace Powered by DPL (AIM) and the Breakaway Accelerator Program.
The BlueStem team assessed several potential insurance solutions but “kept coming back to AIM because of the service, structure, and the technology.”
Transitioning the Annuity Book
With the help of DPL’s proprietary technology and team of licensed consultants, BlueStem was able to transition over 100 annuity contracts from their former broker-dealer through a process they describe as “very enlightening and very efficient.”
“There is no possible way we could have transitioned the number of contracts and done the analysis to make sure it was better for the client, handled the paperwork...DPL has taken a huge load off of our firm,” said Marquardt.
Offering Fee-Based Solutions as a “True Independent”
DPL’s annuity marketplace and technology, combined with the Black Diamond integration, is proving to be a game-changer for BlueStem.
“The variety of product options that we’ve learned about from DPL, and the features and benefits for our clients, is one huge reason why real independence has benefited our clients and the firm.”
“We’ve transitioned $20M of annuity assets in five months; that’s the maximum we thought we could transfer. With DPL, I think we’ll triple that.”
— Scott Marquardt
Benefits of the Breakaway Accelerator Program
INDEPENDENCE. Complete your transition to a 100% fee-based model without leaving annuity assets behind.
SIMPLICITY. Make a seamless move away from your broker-dealer relationship, fees, and FINRA registration.
VALUE. Retain and protect client relationships while developing your fee- based AUM with current accounts.