The financial professional’s tech guide: software and tools for client success

December 28, 2023

About the author

The Advisor Advocate editorial team is comprised of a diverse group of thought leaders and contributors across Nationwide Financial, as well as many others who provide support behind the scenes. We work together to deliver inspired, informed content and expertise on topics that matter most to financial professionals and their clients.

Why Financial Planning Tools Matter

Financial planning tools have become indispensable for financial professionals, and for good reason. They offer a range of benefits, from streamlining workflows to enhancing client engagement and providing data-driven insights. As client expectations evolve and the financial landscape becomes increasingly complex, these tools are essential for staying competitive and delivering the highest level of service. Financial planning software isn’t just a tool for financial professionals; it’s a catalyst for transformative change in the world of wealth management. In this age of rapid technological advancement, it challenges financial professionals to reevaluate their traditional approaches and embrace innovation.

Here’s why financial planning software is at the heart of this wealth management transformation:

The shift towards holistic wealth management: Clients no longer view their finances in isolation. They want a holistic perspective that encompasses not just investments, but also retirement, estate planning, taxes, and more. Financial planning software equips advisors to provide this broader view, reshaping the very nature of advisory relationships.
Data-driven decision-making: With access to vast amounts of financial data, advisors need tools that can process, analyze, and derive insights from this information. Financial planning software is the gateway to data-driven decision-making, helping advisors make more informed choices for their clients’ financial well-being.
Client empowerment: Modern clients are more financially savvy and proactive than ever. They want to be actively involved in their financial planning journey. Financial planning software not only engages clients through interactive portals but also empowers them to collaborate with advisors in charting their financial futures.
Risk mitigation and scenario analysis: The financial landscape is rife with uncertainty. Advisors need tools to assess and mitigate risks effectively. Financial planning software offers risk assessment and stress testing capabilities, enabling advisors to navigate uncertain terrain and make sound financial decisions, including estate planning strategies.
Compliance and fiduciary responsibility: Regulations are becoming increasingly stringent. Advisors must demonstrate adherence to fiduciary standards and transparency. Financial planning software assists in generating compliant reports, ensuring clients have full visibility into their financial plans.
Efficiency and scale: Efficiency is key to serving a growing client base. Financial planning software streamlines tasks, from data collection to report generation, allowing advisors to scale their practices while maintaining high-quality service.

Tools and features to consider

Different vendors will offer various benefits for you and your practice based on their unique financial planning software. Choosing the right vendor will depend on your budget, your preferences, and what kinds of clients you serve. You’ll also want to evaluate how you’d like this financial software to integrate into other programs that you typically utilize.

Here are some features to consider when researching financial software and tools for your practice:

Cash flow analysis: this feature can be valuable for understanding income, expenses, taxes, and savings projections.
Retirement planning: many tools will allow you to estimate retirement income needs, project expenses, set savings targets, and optimize retirement income streams.
Estate planning: in addition to retirement planning, some tools will go even further to help craft comprehensive estate plans, considering wealth transfer and legacy goals.
Client engagement: client portals or dashboards can be a great way to include clients and keep them engaged.
Goal tracking: some tools will focus more on goal setting and goal-centric planning, providing clarity and motivation for clients as they track their progress.
Integration: different tools will offer varying degrees of integration into the programs and software that you use every day.
Scenario analysis: many tools offer scenario analysis to stress test portfolios and assess how they may perform under various market conditions.
Tax analysis/optimization: some vendors will offer tax scenarios or optimizations to create strategies for clients.
Reporting: most vendors will offer some sort of reporting for users. Based on your own preferences you can research how robust you’d need the reporting capabilities to be.

Final thoughts

In a world where client expectations are evolving, regulations are tightening, and financial markets are dynamic, financial planning software can be the torchbearer of innovation. It challenges advisors to reimagine their roles as holistic wealth managers, data-driven decision-makers, and collaborators in their clients’ financial journeys. It is a bridge to a future where financial advisory isn’t just about managing wealth but also about nurturing financial well-being in an ever-changing landscape.