What wealth managers need to know about high-end, advisor-focused planning software.
It’s 2014. Put away the antiquated, manually-generated financial plan. Any advisor in touch with reality knows that, today, it’s about working with a high-end, comprehensive software package designed for an advisor practice.
Today, high-end software can capture, collate and display amazing reams of client data, including business income and taxes. This data can be tweaked and modeled, and displayed as attractive, useable and appealing financial plans that the client can take home to the spouse.
Since the dawn of the digital age in the 1990s the number of programs now available has blossomed. There are dozens of financial software options today. Functionality has exploded, as has the complexity of the programs, which can be disorienting. What do financial advisors need to know about the software they use? It is time to confront the beast and acquire that high-end planning software. Don’t scream. Don’t hide under the bed. This can be done.
There are, of course, many run-of-the-mill, retail-focused products (as well as free-ware programs). But the real pros have shifted toward advisor-specific software. After years of development these programs are now de rigueur. Any planner hoping to make an impression on sophisticated, high-net worth clients will need to know how to use dedicated “advisor-level” software.
Karim Rashwan, a product manager with Wolters Kluwer, explains the benefits of buffing up the office tech. “An advisor should think about acquiring planning software because it supports the key factors that are necessary for efficient, reliable and accurate financial plans. Use of software in general of course speeds up processes, automates calculations and provides easy ways for advisors to monitor plans and to present those plans to their clients. As well, use of software increases credibility in the eyes of prospective and existing clients because it suggests a level of sophistication and accuracy that cannot be achieved in a manual planning process,” says Rashwan.
Today, the range of ability built into the programs is stunning. Tax modeling, business cash flow from multiple sources; these are the kinds of advanced functions that represent the kind of services client now assume an advisor will offer. The ability to capture complex financial plans is just assumed today.
“In general, planning software supports an advisor’s practice because it adds credibility to the plans, and to the planning process. As well, it creates efficiencies because plans can be done more quickly and with a greater level of detail than would be possible with a manual process or with non-financial planning specific tools. The credibility that software use inspires helps in generating client referrals and therefore assists in business growth. Also, existing clients tend to stay with advisors who demonstrate that they can provide comprehensive plans that can be easily adapted to changing circumstances,” says Rashwan.
It can be tempting to go with lower-end software, or even so-called share-ware that can be had for free. But clients expect their advisor to be reaping the efficiency rewards that have come with the digital revolution. Sure, the high-end packages can be complex, and there is a time commitment in terms of learning to use these programs. But this is part and parcel of what it is modern advisors need to do to keep their practice up to par with the competition.
Advisors who have avoided putting in the time and expense necessary to become a master of these high-end programs had better get over their fears. This is the future of planning. The younger generations expects this. Those who can’t keep up, will, in the end, be left behind. As a way of helping to break down the “familiarity barrier” this week WP will be running a series of stories that talk about the new software solutions available to advisors. What can these programs do? What do you need to know to get on board? What are the education options in terms of getting started? These are the kinds of questions that need to be discussed and answered in our In-Focus section every day this week at wealthprofessional.ca.
Coming tomorrow: Getting the lay of the land.
Today, high-end software can capture, collate and display amazing reams of client data, including business income and taxes. This data can be tweaked and modeled, and displayed as attractive, useable and appealing financial plans that the client can take home to the spouse.
Since the dawn of the digital age in the 1990s the number of programs now available has blossomed. There are dozens of financial software options today. Functionality has exploded, as has the complexity of the programs, which can be disorienting. What do financial advisors need to know about the software they use? It is time to confront the beast and acquire that high-end planning software. Don’t scream. Don’t hide under the bed. This can be done.
There are, of course, many run-of-the-mill, retail-focused products (as well as free-ware programs). But the real pros have shifted toward advisor-specific software. After years of development these programs are now de rigueur. Any planner hoping to make an impression on sophisticated, high-net worth clients will need to know how to use dedicated “advisor-level” software.
Karim Rashwan, a product manager with Wolters Kluwer, explains the benefits of buffing up the office tech. “An advisor should think about acquiring planning software because it supports the key factors that are necessary for efficient, reliable and accurate financial plans. Use of software in general of course speeds up processes, automates calculations and provides easy ways for advisors to monitor plans and to present those plans to their clients. As well, use of software increases credibility in the eyes of prospective and existing clients because it suggests a level of sophistication and accuracy that cannot be achieved in a manual planning process,” says Rashwan.
Today, the range of ability built into the programs is stunning. Tax modeling, business cash flow from multiple sources; these are the kinds of advanced functions that represent the kind of services client now assume an advisor will offer. The ability to capture complex financial plans is just assumed today.
“In general, planning software supports an advisor’s practice because it adds credibility to the plans, and to the planning process. As well, it creates efficiencies because plans can be done more quickly and with a greater level of detail than would be possible with a manual process or with non-financial planning specific tools. The credibility that software use inspires helps in generating client referrals and therefore assists in business growth. Also, existing clients tend to stay with advisors who demonstrate that they can provide comprehensive plans that can be easily adapted to changing circumstances,” says Rashwan.
It can be tempting to go with lower-end software, or even so-called share-ware that can be had for free. But clients expect their advisor to be reaping the efficiency rewards that have come with the digital revolution. Sure, the high-end packages can be complex, and there is a time commitment in terms of learning to use these programs. But this is part and parcel of what it is modern advisors need to do to keep their practice up to par with the competition.
Advisors who have avoided putting in the time and expense necessary to become a master of these high-end programs had better get over their fears. This is the future of planning. The younger generations expects this. Those who can’t keep up, will, in the end, be left behind. As a way of helping to break down the “familiarity barrier” this week WP will be running a series of stories that talk about the new software solutions available to advisors. What can these programs do? What do you need to know to get on board? What are the education options in terms of getting started? These are the kinds of questions that need to be discussed and answered in our In-Focus section every day this week at wealthprofessional.ca.
Coming tomorrow: Getting the lay of the land.
