Connecting daily finances and long-term goals with holistic planning

December 04, 2017 by Katelyn Rattray

An advisor walks a client through their budget and develop a long-term planning strategy.

About the author

Katelyn Rattray

Senior content marketing specialist

With a background in content marketing, public relations, and social media management in a variety of industries, Katelyn strives to deliver high-quality educational content to advisors in the financial services industry and empower them with tools to boost their marketing efforts through content marketing and technology.

For your clients, financial planning and the “housekeeping book” are not two separate things. Your client is only interested in their day-to-day cash flow but also their overall financial well-being. Making the link between retirement planning and grocery shopping, as well as between the mortgage and the electricity bill, is becoming increasingly important, and only then can the client improve his or her understanding of their own financial situations.

Americans are in dire need of professional financial assistance

The current financial landscape for the average American can be quite grim. MarketWatch recently found that 49 percent of Americans are “concerned, anxious, or fearful about their current financial well-being.”

The statistics regarding American debt make this financial concern even more justified:

Lack of financial literacy is often to blame for poor money management, which is why many consumers turn to financial advisors for help. The average person will often become overwhelmed with investment and savings options in addition to not fully understanding the effects of the greater financial market on their specific situation.

According to Gallup, only 30 percent of Americans have a long-term plan outlining their savings and investment goals in detail. Just because a detailed plan is not in place, however, does not mean consumers do not want one.

The importance of offering holistic services

It is clear that holistic financial planning, coupled with industry-leading technology, will play a key role in remaining competitive and demonstrating value for many financial services professionals.

“Financial advisors who not only provide portfolio recommendations, but can help their clients reach their personal goals, may just gain a competitive edge as consumers increasingly value 360-degree planning,” according to MassMutual.

The financial services industry has shifted to a highly consumer-focused model over the past few years. It is no longer about simply making a sale; it is now about providing the consumer with holistic financial advice and a unique digital experience through comprehensive planning and advice delivery as well as the data to improve efficiencies and ultimately increase profitability.

A survey by ORC International, a New Jersey-based market research firm, found seven out of 10 respondents prefer an advisor who provides comprehensive financial planning services as opposed to an advisor who specializes in one area (30 percent).

Additionally, Fondulas Strategic Research found that approximately one-third of consumers who worked with an advisor on a financial plan did not receive the financial planning services they were seeking.

This research demonstrates the clear, increasing demand of holistic financial planning from clients.

Technology plays a large role in a holistic client relationship

Client have become accustomed to managing their cash flow digitally, and they expect to manage their financial plan, investments, and long-term goals the same way. Personal financial management tools along with the most powerful calculation engines in the world, offered by Advicent, allow for comprehensive financial planning to incorporate all aspects of the financial situation of the client to give them a clearer picture of their future.

The NaviPlan® financial planning software is built to produce the most precise plans, no matter what your planning needs are. Its detailed cash flow analysis, regular tax updates, and Monte Carlo scenario simulation calculations will keep your clients’ plans up to date and accurate, while its modular and goal-based assessments help you adapt to any needs uncovered in client meetings.

Additionally, the NaviPlan® client portal offers advisors and their clients insight into their personal financial plan anytime, anywhere with transparency and security. The NaviPlan client portal seamlessly and proactively connects advisors to their clients throughout the client journey, with 24/7 accessibility to their financial plan.

To learn more about how Advicent technology can help you meet the holistic needs of your clients, click here.