In an age when “robo-advisor” is part of the mainstream lexicon, financial advisors must ensure their clients understand the value they provide.
Unlike robos, advisors can harness in-depth market expertise and cycle experience as well as fundamental research to help clients make well-informed investment decisions. Advisors can also act as a calming influence on investors during times of market stress.
Even more significantly, advisors possess the capability to present a holistic financial picture for investors and utilize insights from this snapshot to create financial plans that clients can find more useful and valuable.
Advisors can enhance the quality of the financial plans they offer clients in several ways:
1. Offer a broad selection of advanced scenarios. Just as no two snowflakes are exactly alike, neither are people, so clients are unlikely to have identical financial or retirement goals. To effectively service and demonstrate value for clients of all ages and life stages, advisors require an arsenal far more advanced than simply looking at retirement income, business planning, or tuition-saving scenarios.
In order to determine the ideal financial planning strategy, advisors must be able to seamlessly perform the scenario that best suits every client’s needs, goals, assets and concerns. Advanced business planning, estate planning, stock option, and retirement income scenarios, as well as Monte Carlo and detailed tax analysis, can create far more comprehensive and precise financial plans. This is why advisors need to make sure their practice’s financial planning software doesn’t limit the type or complexity of the scenarios they can demonstrate for clients.