How BLBB Advisors leverages Flourish for success

November 12, 2024

Estimated reading time: 5 minutes

In the low interest rate era, cash didn’t usually warrant much discussion between clients and their advisors. But with yields returning to more traditional levels, overlooking cash management can be a missed opportunity. For one Flourish client, addressing cash has emerged as a surprisingly powerful tool for deepening client relationships and building new ones, regardless of the interest rate environment.

BLBB Advisors, a registered investment advisor based in Montgomeryville, Pennsylvania, has a rich 60-year history. Founded in 1964 by two former Air Force pilots, the firm has experienced substantial growth over the years while maintaining deep client relationships. To put the firm’s longevity into perspective, their original office housed a physical ticker tape machine!

The firm describes its client base as the "millionaire next door." Many are affluent people who have worked hard and aren’t flashy, giving away much of their wealth through donor-advised funds and private foundations. Philanthropy runs deep within the culture of BLBB: in addition to running its own charitable foundation that gives away over $2M annually, team members are encouraged to invest substantial time in non-profit activities in order to rise through the ranks of the firm. In addition to this core client base, the firm works with many business owners and serves non-profit organizations directly.

BLBB came upon Flourish in 2019 while searching for a better FDIC-covered cash solution for their highest net worth clients. They had discovered that clients often left their reserve cash in their primary bank account in amounts that unknowingly exceeded FDIC limits, creating unnecessary risk.

As interest rates increased in 2022 and conversations around cash followed suit, BLBB realized how well Flourish Cash aligned with their planning-forward philosophy and adoption began to increase across the firm. This prompted them to employ the solution across the entire firm, ultimately inviting over 500 households to the platform as of October 2024.^|| “The fact is that clients hold a lot of cash – often in very inefficient ways,” said Clifford Haugen, Principal, President, and Financial Advisor at BLBB. “You’ll see a client with up to 20% of their balance sheet in a bank earning nothing. You're not going to change the client's psychology, but how can you optimize the situation? Flourish Cash helps us talk with clients and offer a solution.” 

Today, most BLBB advisors routinely include cash management in client conversations and meetings with prospective clients. Despite a predicted season of lower rates ahead, the firm remains committed to keeping the cash conversation alive. As Beth Pinsker recently wrote in The Wall Street Journal: "Rates will inevitably fall at some point, but you'll almost always be better off with your cash in a high-yield account than a traditional one."¹ When it comes to client cash, BLBB is taking the long-term view. 

BLBB advisors quickly discovered that Flourish Cash helped them provide significant value to clients at no cost to the firm — especially if the client previously kept their reserve cash in a traditional bank. With Flourish Cash offering FDIC coverage through its Program Banks up to $20M for a two-person household,^Ω a competitive rate of 4.25% APY^§ as of 11/08/2024 (rate subject to change), and easy access to cash with same-day transfers,^| the solution fits in exceptionally well with the planning-focused, fiduciary approach of BLBB.

Haugen noted that it's easy for their advisors to approach clients with Flourish Cash as an alternative cash offering. “We basically tell each client, ‘Your bank is not doing you any favors in terms of FDIC insurance, in terms of yield, in terms of fees. We've got a great alternative for your cash.’” For many of BLBB’s clients, while the extra yield from Flourish Cash was a welcome perk, the real win was in reducing risk by securing higher FDIC coverage. When advisors highlighted this hidden vulnerability, clients were relieved to find a safer option.

The clients of BLBB have embraced the solution offered by the firm, no strings attached. Haugen explained, "The reception has been great. The fact that we’re not selling anything makes it quite distinct. We just tell them, ‘I'm not getting paid. There's nothing in this for me other than delivering a good solution for you. You ought to take a look.’"

Flourish Cash has provided BLBB's team with greater visibility than in the past and client cash holdings outside of BLBB are less of an unknown. "Most advisors are generally quick to pat themselves on their backs and think that they have all the client's assets,” said Haugen. “But when you get a tool like Flourish in there, you can quickly find out about cash holdings we were unaware of before.”

Once the firm has gained this additional visibility, it can quickly add more value to clients. Although Flourish offers an option for firms to add a service fee for Flourish Cash, BLBB has opted to provide access at no cost to the client. “Any tool that lets us get more insight into the client's actual asset allocation is really important to our planning team, and it's really important to our portfolio managers. It helps with providing better asset allocation going forward, and also provides the potential for better service,” said Haugen. 

BLBB found one unexpected benefit from Flourish Cash: better prospecting. One of the firm’s financial advisors, Brian Gallagher, explained: “I think it's a good way to get in the door with prospects. It’s powerful to say ‘Even if you decide or don't decide to work with us, here's something you might be interested in.’ In many cases, the individual or organization may not have been aware of the ability to get a higher rate along with better FDIC coverage. It allows me to add significant value before they even consider signing on as a client.”

BLBB Financial Advisor Nick Bucci echoed that sentiment: "Our main goal is to help clients by showing that we're not just here to collect fees. We're focused on their best interests. Offering a no-fee solution like Flourish shows we’re genuinely trying to provide value, not just charge for services."

Today, the industry is alive with talk about the Great Wealth Transfer. BLBB has found that Flourish Cash provides a natural way to build relationships with client family members, especially younger individuals who may not have significant assets yet — with minimal effort required of the advisor. Haugen said, "We've found that the young adult children of our clients tend to love Flourish. The 26-year-old who has time to play on their phone loves to move money back and forth and get a couple extra bucks. They think it's the greatest thing ever.” The ability to offer a competitive rate solution provides a connection between the firm and potential future clients.

When it comes to prospecting ultra high net worth clients, the conversation turns from rate to FDIC insurance coverage. “With Flourish, you can provide a solution with up to $20 million in FDIC coverage per couple,” said Haugen. “Clients think that's great, especially in combination with the rate. Overall, this makes Flourish a good prospecting tool for that segment as well, which can be increasingly hard to find.” 

Flourish offers its advisory firm clients the ability to co-brand the platform for no additional charge, providing a unique way to keep the firm’s brand in front of clients and prospects. Bucci noted, "Every time a user logs in, they see our name and are reminded of our presence.” With advisors struggling to stay top of mind through increasingly crowded email inboxes and social media feeds, having a Flourish Cash platform branded with the firm’s logo can be a powerful always-on marketing tool.

Because of this, BLBB advisors find that the Flourish platform serves as a particularly effective entry point for prospects. “They're going on Flourish and they're seeing our logo,” remarked Gallagher. “The next time they are thinking about their financial needs, most likely they're going to think of us because we already have a relationship with them. Not a formal contractual relationship, but it’s there indirectly through Flourish.”

Haugen reiterated that this has been especially valuable in relationship-building with the younger generations. “When we talk to the 30-year-old adult child of a multi-millionaire client, it’s often the case that they have little in the form of assets yet. So we're talking about optimizing their benefits program at work, getting their 401k right, making sure they're getting the match. There's not much we can do there from an investment management front or really even from a planning perspective. It's more like budgeting and life 101. Flourish fits great within that conversation.” 

Since 2019, BLBB has invited over 500 households to Flourish Cash, driving positive client engagement and strengthening the prospecting process. Critically to the BLBB team, the solution has driven real-life results. Haugen explained: “We work with several independent schools where shifting their bank cash and CDs to Flourish has simplified their business office operations and has helped them earn interest that is equivalent to gaining three to five full-pay students. That might not sound like much, but it is a big deal for independent schools.”

He concluded: “Flourish has been easy for our advisors to roll out and easy for our clients to adopt. We’ve had nothing but positive feedback on the ease of use, the quality of Flourish support, and the benefits of high FDIC coverage and great rates.”

Although recent high interest rates may have temporarily driven more attention to cash management, BLBB views the discussion around cash as a long-term strategic component of their client service. The firm has integrated Flourish into its processes in such a way that, even as interest rates may decline, the value of optimizing cash remains clear. The firm expects cash management to remain an integral part of optimizing client outcomes for years to come.

About Flourish

Flourish builds technology that empowers financial advisors, improves financial lives and retirement outcomes, and delivers new and innovative investment options to advisors. Today, the Flourish platform is used by more than 850 wealth management firms representing more than $1.5 trillion in assets under management. Flourish is wholly-owned by Massachusetts Mutual Life Insurance Company (MassMutual). For more information, visit www.flourish.com.

About BLBB Advisors

Founded in 1964, BLBB is an independent, employee-owned, multi-custodial financial advisory firm. BLBB provides fiduciary advice, planning, and investment management services to individuals and families, nonprofits, and business owners. The Plan. Invest. Succeed.® approach developed from over six decades of experience focuses on  comprehensive and personalized service resulting in generations of loyal clients and professional partners. Learn more at blbb.com.

BLBB Advisors and Flourish are separate and unaffiliated firms. The interviews have been edited for length and clarity. This feedback may not be representative of the experience of other customers, and is not a guarantee of future performance or success.

This article is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax, or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.