Getting Something From Less Than Nothing

With the help of FinancialCircuit, a company based in Campbell, California, that makes liability management software, broker/dealer LPL Financial has added an additional source of revenue to its advisors’ bottom lines–and its own. MoneyFind, a liability management service, has been going through a pilot program at LPL since August; on November 3, the official rollout was announced. What was initially expected to encompass about 200 people in the initial rollout, according to LPL’s managing director of national sales, Jim Putnam, ended up with 500 reps signed up, with 118 loan applications in the four weeks before we spoke.

Liability management allows advisors to restructure a client’s debts and liabilities to increase cash flow and tax savings. It also allows an additional portion of a client’s portfolio to generate income, one that hasn’t been explored before as a revenue source, and provides a more accurate and thorough picture of a client’s financial standing. Clients whose liabilities are reduced are also more likely to allow advisors access to more of their portfolios, thus increasing the base of assets under management.