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Ladenburg Invests in Tech Startup Geared Toward the Self-Employed

July 30, 2018

Ladenburg Thalmann Financial Services, in a bid to stay a step ahead of how wealth management will change, is investing in a tech startup that offers tax automation for the self-employed, InvestmentNews writes.

Track Technologies automates the calculation and withholding of estimated taxes for workers using 1099 forms, such as freelancers and independent contractors, according to the publication.

Track’s software can track deposits and expenses and synchronize with bank and credit card accounts, alerting its users to what they owe as well as possible deductions, InvestmentNews writes.

Advisors using Track’s software could also assist users in rolling over tax refunds into retirement accounts, Trent Bigelow, co-founder and CEO of Track Technologies, tells the publication.

Ladenburg chose Track as its first investment, details of which Ladenburg did not disclose, after an “Innovation Symposium” it held in May, according to InvestmentNews.

Ladenburg is investing in the early-stage startup in anticipation of up to 50% of workers being at least partially self-employed by 2027, according to Dan Sachar, vice president of enterprise innovation and head of the company’s innovation lab, InvestmentNews writes.

"Keep in mind, the strategy, the goal of this investment, and the Innovation Lab itself, is to not think about what advisors are doing today, but what advisers 10, 15 years from now are going to be doing," Sachar tells the publication.

Ladenburg’s advisors tell the firm that Track could be valuable in offering something different to clients with independent sources of income, according to Sachar.

And some advisors could benefit from the software themselves: advisors at Securities America, Triad Advisors, KMS Financial Services, Investacorp and Securities Service Network, Ladenburg’s subsidiaries, work as independent contractors, according to the publication.

By Alex Padalka
  • To read the Investment News article cited in this story, click here.