How a Father-Daughter Company is Integrating Technology to Provide Generational Financial Planning

Garnett Investment Strategies, based in Beatrice, Nebraska, is a family owned business with more than 40 years of experience in retirement and wealth management planning. Paul Garnett founded Garnett Investment Strategies with his daughter, Traci Garnett, in 2013, leveraging his decades of work and traditional training from Edward Jones.

Soon after the firm was founded, Paul and Traci realized that their broker-dealer offering was no longer working. There were excessive fees on retail mutual funds and restrictions on what mutual funds Garnett could sell and present to clients. What’s more, there was no transparency on what the fees were and where they came from, ultimately putting advisors and clients in a difficult position. Garnett needed to find a way to best serve their

clients, and to identify more solutions for clients who wanted to manage risk with investment tools other than an annuity or bonds.

Garnett Investments: The Generational AdvisorTo fully understand Garnett’s need for enhanced technology capabilities, it’s important to first understand who Garnett primarily works with. 60 percent of its clients are baby

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“ Garnett needed to find a way to best serve their clients, and to identify more solutions for clients who wanted to manage risk with investment tools other than an annuity or bonds.”

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boomers, 20 percent are Gen X-ers and 20 percent are millennials. Given this breakdown, Garnett is becoming a generational advisor and it is not uncommon for them to work through lines of families.

“The majority of our clients come to us with some generational investing questions, and we have helped direct them to CPAs, lawyers and other trusted advisors to create solutions like trusts and tax strategies,” said Traci Garnett.

Paul Garnett added, “For about 75 percent of our clientele, we work closely with the clients’ other trusted advisors to create multi-generational plans. It becomes an easy conversation for the baby boomer to have with their kids if their advisor(s) are present and can help guide the conversation of what assets they have, why they have it and what the strategy is.”

Garnett believes this helps build strong relationships for the children and grandchildren to know who to come to for help and advice when the time comes, and that the transition of wealth is more seamless the earlier an advisor relationship is started.

Work Styles Help Drive Technology AdoptionTraci Garnett is a millennial and has grown up with evolving technology, so she embraces Envestnet to streamline her daily tasks. Garnett finds the block trading capability for multiple portfolios and clients most beneficial, and “loves” the model creation tool to show diversification to a client in a very easy-to-understand piece. Having all the money manager research in one place speeds up Garnett’s work, rather than having to go to each individual site, unless desired. Traci particularly likes the service request feature—allowing her to easily raise

“ The transition of wealth is more seamless the earlier an advisor relationship is started.”

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At A Glance:

• Founded: 2013• Location: Beatrice, Nebraska• Website: www.garnettinvestments.com • Services Offered: Retirement And Wealth Management Planning • Aum: $53 Million (Excluding Assets In 529/401K/Insurance/

Annuities/Etc.)• Clients: 150• Staff: 5• Primary Custodians: Charles Schwab & Co., Pershing and

TD Ameritrade• Portfolio Management/Reporting: Envestnet, Schwab Portfolio

Center Or DST Vision• Portfolio Rebalancing: Envestnet

cash, make distributions or to simply change out a model or do a goal modification.

Paul Garnett, on the other hand, embraces traditional pen-and-paper work, but he finds the research center, client review reports and model portfolio creation tools on the Envestnet platform to be helpful in driving day-to-day business. With Envestnet’s broad spectrum of capabilities under one unified platform, both Paul and Traci are able to utilize the features they find most beneficial to match their individual work styles and client needs.

Customizable Platform for a Unique PracticeGarnett Investment Strategies is a unique, father-daughter practice. Envestnet provides the ability to access renowned asset managers who offer a diverse range of investment styles and portfolios. Both Paul and Traci Garnett find the availability of options on the Envestnet platform to be “far and above superior” to other competitors, and the ease of use and support provided by the Envestnet team is an added bonus.

When Garnett began using Envestnet in 2013, Paul and Traci both found the implementation easy and seamless. With a lot of assets on the platform, it is simple for them to access information and build, trade and customize portfolios. Garnett uses both Unified Managed Accounts (UMA) and Advisor Directed accounts (or Advisor-as-Portfolio Manager, APM), depending on the size of the account and direction based on the client’s goals. The team uses the APM tool to insert advisor sleeves of funds with a ticker symbol, and the UMA tool to create true managed money portfolios.

While their work styles may differ, both Paul and Traci Garnett believe Envestnet has improved efficiencies across their practice, allowing them to focus on higher net-worth clients and larger accounts.

“Envestnet’s capabilities make it easier to meet new and growing client needs,” Traci said. “Our clients desire to get online and see how their account is doing and what they are invested in, and Envestnet gives us the opportunity to easily send reports through the client portal,” she added. “Plus, with the increasing need to

“ While their work styles may differ, both Paul and Traci Garnett believe Envestnet has improved efficiencies across their practice, allowing them to focus on higher net-worth clients and larger accounts.”

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show transparency of transactions, fees and holdings in accounts, clients are easily able to log in to their client portal and see what the advisor is doing.”

Since implementing Envestnet, Garnett Investment Strategies has been able to capture accounts they previously did not win or know about. The firm currently has 239 accounts that it brought over from other platforms, and continues to add more each month.

ConclusionAs a generationally-rooted company, Envestnet has provided Garnett Investment Strategies with the

capabilities, tools and resources they need to meet the needs of their clients, many of whom are focused on generational investing. Paul and Traci Garnett, the father and daughter principals of the company, have different views of technology; while Traci has grown up embracing technology, Paul is more comfortable with traditional advising methods. However, the broad capabilities available on the Envestnet platform allow Paul and Traci to use the features they and their clients find most important, and have enabled Garnett to create efficiencies, be transparent with clients and grow their business. •

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About EnvestnetEnvestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.

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“ Garnett currently has 239 accounts that it brought over from other platforms, and continues to add more each month.”

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