Service every client with scalable financial technology

February 21, 2018 by Alex Noonan

A young couple seeks assistance from an advisor.

about the author:

Alex Noonan

Technical writer

Joining Advicent as a partner support specialist in 2013, Alex provided high-quality support for partners within NaviPlan and Profiles. In 2015, he took that product knowledge to the learning development team as a technical writer, creating detailed documentation for partners with a practical focus on what they need to know. Alex received a BSBA from Drake University in Marketing/Advertising Creative in 2013.

The rise of robo-advice and increased competition has made the ability to serve any client who walks through your door invaluable. With NaviPlan, the most flexible and accurate financial planning tool in the market, you can service any client by utilizing features of varying complexity.

Calculators

Calculators are simplified tools that can give clients quick answers to specified needs, such as IRA vs. Roth IRA income payouts or a loan comparison analysis. Each calculator also includes a simple visual graph and is convertible to a PDF or Word document for client delivery.

Assessments: forecaster and asset allocation

In comparison with calculators, assessments provide a more complex look at a client’s financial situation without losing focus of their specific goals.

Forecaster assessments allow advisors to obtain a simplified view of a client’s current financial situation and to see how successful their various goals will be if financial strategies progress as projected. Data entry is simplified, including assets, liabilities, incomes, savings, expenses, and goals. Forecaster assessments provide a good first look to a client’s finances, and, unlike calculators, can expand into a full plan if needed.

Asset allocation assessments focus entirely on how a client’s assets are divided in their portfolio. Data entry is limited to account values and current rates of return. The risk tolerance questionnaire helps suggest what asset mix would be most appropriate for a client based on their risk preferences.

Both assessments offer detailed, though different, client report deliverables that go over the various data entry points. These include the financial success for forecaster assessment and asset allocation suggestions for the asset allocation assessment.

Level 1 plans

More complex than assessments, a level 1 plan offers detailed data entry. This allows for the entry of separate assets and liabilities; multiple incomes and expenses; asset allocation; and for accounts to be assigned to specific goals.

In addition, level 1 plans support multiple planning scenarios and can provide alternative situations for how clients can meet their goals or how alternative economic situations may impact their plan.

Level 1 plans save time for simple client needs but may not provide the functionality that high-net-worth clients desire. With more modular options than a forecaster assessment, the available options are still limited to most common needs such as retirement, insurance needs, education, and major purchase.

With expanded reporting options, level 1 plans can provide a dynamic detailed reporting experience for clients with the most basic modular needs. Level 1 plans can be promoted to a level 2 plan if more complex planning features are needed.

Level 2 plans

The most complex and holistic planning level is the level 2 plan. With similar functionality to a level 1 plan, level 2 plans have more complex offerings in almost every area of the plan. Additional modules are available, such as equity compensation, Monte Carlo analysis, and estate planning. Additionally, advisors can model alternative goal strategies for retirement and choose from an expanded roster of account types. Level 2 plans also do not require completion of the asset allocation questionnaire for goal planning.

Level 2 is a powerful planning tool for nearly every client, as it give users the most strategic options for planning. Though the volume of available functionality and modules may be daunting at first, it is important to note that these features are not required for all plans and are available only if you need them. Level 1 may save you time, but there may be that one item that is only available in level 2 that you can’t work without.

As with level 1 plans, level 2 gives you even more reporting options, not just in the new modules, but also in the existing modules carried over from level 1. Level 2 reports can be as simple as a level 1 plan, or extremely complex for clients who need the extra details.

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