New regulations are placing more importance on the comprehensive financial plan

December 6, 2016 by Tony Bevan

A close-up of a financial professional discussing a financial plan with a client on paper and on a laptop

About the author:

Tony Bevan

Vice president, enterprise accounts

Tony has over 15 years of software development experience in the financial services industry. He is knowledgeable in all aspects of product development and implementation at Advicent.

Rules are often a good thing — especially when they are trying to protect you, your practice, and more importantly your clients. With the DOL rule in the US and CRM2 in Canada, what better time is there to show your clients the value you bring to the table as their trusted professional advisor?

The importance of a comprehensive financial plan

Advisors educate their clients to think long-term; however, when a client opens their investment statement the first thing they look at is what is the current value of their portfolio and what is the rate of return they achieved. Financial professionals are often telling clients one thing and showing them another. What does this really mean and how will this impact them over time?

This is where a comprehensive financial plan allows the advisor to better understand their client’s current situation, as well as their long-term goals. This also enables advisors to keep the client’s best interest in mind when their portfolio must be adjusted to keep the client on track with their financial goals.

The financial planning software provided by Advicent allows financial professionals to test scenarios against the client’s financial goals and demonstrate how a higher or lower risk portfolio may impact the financial plan. This can be done before any action is taken and more importantly before any fees are paid to perform the transactions.

Additionally, our products allow your clients to visually understand the impacts the day-to-day fluctuations in the markets have on their financial goals. Advisors can demonstrate the current value of the portfolio and then project out to the client’s future financial goals.

What better comfort is there for a client when they open their statement and clearly see the current net worth of their investments, the latest rate of return they received, and how it impacted the progress towards their goals?

A third-party review of NaviPlan® financial planning software from Advicent

North Highland, a worldwide consulting firm, has completed a detailed analysis on NaviPlan and confirmed that the software is “well-positioned to help advisors comply with fiduciary requirements. The platform offers a robust, in-depth tool set for advisors to use in preparing comprehensive planning.”

Combined with our Narrator® Clients portal which empowers increased transparency and collaboration, advisors will be in a strong position to gain the trust of their clients while complying with the changing regulation.

Click here to learn more about how The Compliance Blueprint from Advicent can be leveraged to foster more transparent and collaborative client relationships.