Close Close

8 Reasons Stress Testing Your Client’s Financial Plan Is a Must

Your article was successfully shared with the contacts you provided.

Related: What Advisors Are Telling Clients About ‘Buying the Dip’: Advisors’ Advice

While having a strong financial plan in place is crucial, stress testing that plan and assessing emergency risks is critical also, according to eMoney.

That is especially true in times like right now, when economic circumstances may be unstable amid inflation, continuing pandemic-related volatility and supply chain issues, financial planning experts at the Fidelity-owned company said Tuesday, during the webinar “5 Ways to Add Sizzle to Your Stress Tests.”

“With inflation and market volatility ever present and the potential for changes [in] taxes and more, it just might be the time to put your client’s plan through its paces and see how it would perform under a myriad of conditions,” Joseph Buhrmann, senior financial planning practice management consultant at eMoney Advisor, suggested at the start of the webinar.

“A financial plan is never a one-time event,” said Michelle Riiska, financial planning services consultant at eMoney Advisor. “To be effective, financial planning needs to be an ongoing process.”

Advisors need to help clients manage all areas of their financial lives and maintain dynamic plans that can absorb changes in the market, personal situations and priorities, she added.

In addition to stress testing client financial plans, Buhrmann suggested advisors evaluate their client experience and find more ways to engage digitally; elevate their reviews, focusing on holistic planning; and make sure to have a tech stack that helps enable engaging and scalable planning.

Take a look at the gallery above to see what he and Riiska cited as eight good reasons why stress testing financial plans is so important for advisors and their clients.