By Brian Spinelli, CFP®, AIF®Co-Chief Investment Officer as featured in AdvisorHub

As clients demand more comprehensive services from their advisors, the shift towards holistic planning has never been more pronounced. Holistic planning, a strategy that encompasses all aspects of a person’s financial life, often overlooks one critical element: cash management. This oversight represents a missed opportunity for both clients and advisors.

At Halbert Hargrove, integrating cash solutions into our holistic financial planning approach has become a priority. This strategy not only enhances our service offering but also strengthens our competitive position.

With the advent of specific cash solutions designed for Registered Investment Advisors (RIAs), incorporating cash management into our services has become seamless. We selected Flourish Cash and now manage over $100 million in assets on the platform.

Recognizing a growing client concern about cash management, our Investment Committee evaluated various options and identified Flourish Cash as the optimal choice. This solution provides a high-yield account, surpassing traditional bank offerings, while offering transparency into client cash holdings.

To ensure smooth integration, we conducted extensive training, educational sessions, and regular firm-wide reviews. This effort enabled our advisors to confidently discuss the product with clients, uncovering previously unknown assets. We have institutionalized biannual reviews of client cash holdings, especially relevant in the current interest rate environment. This repeatable process has been key to successfully rolling out Flourish Cash across our client base.

Understanding the Value for Clients

A crucial factor in the successful adoption of Flourish Cash has been helping our team recognize the benefits for clients of all sizes. While competitive rates and liquidity drive client interest, additional FDIC coverage through Program Banks has gained significant importance. Our clients appreciate earning higher rates than short-term bonds, coupled with enhanced FDIC insurance, which is particularly attractive to small business owners.

For our advisors, increased visibility into clients’ cash holdings provides deeper insights into their financial lives, facilitating more comprehensive financial planning. Flourish Cash has not only unearthed previously hidden assets but also strengthened the advisor-client relationship. As fiduciaries, our clients trust that our recommendations are in their best interest, as we do not charge fees for this service. It is viewed as a value add to the Halbert Hargrove relationship.

Providing a cash management solution also helps protect against competitors. In our commitment to client-centric service, we strive to offer solutions without direct fees attached, ensuring we remain the go-to provider for our clients’ needs. This cultural component of our firm resonates positively with our clients.

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