Lucia Capital Group is a US-based financial services company that provides its clients with end-to-end investment strategies. At the time of the initial engagement, Lucia Capital Group oversaw approximately $2.3 billion in invested assets. The company engaged Agency73 to build a wealth management application that would allow its advisors to manage retirement investments on behalf of their clients, monitor the plans, and update clients on how their investments perform against selected targets.
When designing portfolios for retirement income Lucia Capital Group applies the Bucket Strategy®, which is quite different from the rebalancing and systematic withdrawal approach used by many financial services companies. The traditional systematic withdrawals strategy is designed to withdraw income from a diversified portfolio of asset classes for the entire retirement period while regularly rebalancing the remaining assets.
The Bucket Strategy® approach, however, divides all investment assets into at least three groups, each representing a different timeframe for the money’s use and different levels of asset sensitivity to changes in interest rates, market volatility, and other factors.
This structure allows the Bucket Strategy® to consider the wide range of specifics in each investor’s portfolio and align it with individual financial situations, income needs, longevity, and retirement goals. This adds complexity, but if implemented correctly, the strategy allows Lucia Capital Group to build custom tailored retirement plans.
The goal of the project was to design and engineer a software environment that would make Bucket Strategy® implementation easier for advisors and more transparent for their clients.
Prior to engaging with Agency73, Lucia Capital Group used a legacy system that was hosted on-site, required intense maintenance effort, and did not allow for holistic connection with other software environments that the company worked with. Agency73’s objective was to design and engineer a new SaaS product to streamline advisor-client interaction and simplify the Bucket Strategy® provision.
Delivering the end-to-end experience that unified clients, advisors, and company management environment entailed the following challenges:
Transform the general vision and goals into clear product logic to design an intuitive advisor workflow
Implement the new SaaS solution to enable a holistic transition from a legacy system
Integrate the Wealth Management solution into the company’s existing software ecosystem
The new Wealth Management application embraces two main user roles – advisor and client – and provides the end-to-end experience for both types of users. It also keeps the system aligned with the cloud-based management software Lucia Capital Group utilizes and client financial information from the Orion and Quovo accounting systems.