As vice president of financial planning, Tom is an integral contributor to the strategic vision around our financial planning initiatives. Additionally, he is critically involved in all partner interactions, thought leadership contributions, and internal training programs.
We at Advicent are excited to be sponsoring this week’s episode of the Animal Spirits podcast hosted by Michael Batnick and Ben Carlson. For the listeners that may not be familiar with Advicent, we are the provider of NaviPlan – an industry-leading financial planning solution trusted by over 140,000 financial professionals across over 3,000 firms worldwide. This includes four of the top five custodians, 15 of the top 25 broker-dealers, seven of the top 10 North American banks, and seven of the top 10 North American insurance firms.
This week’s episode revolves around the economics of home ownership and some of the common financial complexities that homeowners face at various stages of the process. Listen to this week's episode below:
In the following sections, I will break down some of the topics discussed by Michael and Ben, and show how NaviPlan is equipped to handle these scenarios. To see the process for yourself, check out the video below:
Mortgage payment vs investment
A common dilemma for homeowners who have extra cash in their monthly budget is whether they should use that amount to pay down their mortgage or invest that amount in the market.
While the first inclination for many will be to pay down their mortgage, now is a great time to consider refinancing with rates hitting all-time lows. For now, let’s assume that a client already has a competitive rate.
Advisors can utilize the NaviPlan scenario manager to show clients the benefits of investing a certain amount into one of their firm’s portfolios versus applying that same amount to pay down their mortgage. The results can be shown side-by-side, giving advisors a visual reference to guide clients through the possible outcomes. These can also be adjusted in real-time, allowing advisors to show the exponential differences over five, 10, 20, or more years down the road.
Remotely connect with clients and deliver engaging advice.
Relocation and retirement
The modern workplace is certainly changing, and with virtual work become more of a long-term reality, clients may want to explore relocating their residence. With NaviPlan, advisors can easily model different costs of living based on location and also illustrate the tax implications associated with a client changing their state of residence.
To serve clients nearing retirement, advisors can leverage NaviPlan to model the sale of a primary residence, as well as the purchase of a second home, or a new home in a state with more favorable tax laws.
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