We are advocates of financial planning because we know that planning is a catalyst to more holistic conversations and deeper relationships leading to assets and revenue growth. Clients want their advisor to know them. They are looking to their advisor to provide them guidance and do not want to be sold to. Having conversations around topics that the advisor does not receive direct compensation for, builds trust.
To provide firms with data to drive better planning adoption, we created a financial planning benchmarking service, PlanningInsights™. Based on our newest individual advisor level data on over 3,000 advisors, PlanningInsights™ paints a similar picture as from previous years, which is that 95% of advisors are engaged in planning with very few households. The bars in the graph below illustrate the percentage of advisors at various levels of average household planning engagement. The blue bars reflect 2019, the grey bars reflect 2018. The biggest year over-year-change was a 7% increase in the percent of advisors that dabble in planning, engaging an average of less than 1 household per month. While there is a slight increase in the percentage of advisors that engage more than 4 households per month, we would not consider this good year over year progress.
But many financial institutions market a goals-oriented holistic approach, or a 360-degree view that offers advice and guidance. While we know that comprehensive financial planning is not for every client, there is a clear disconnect between what is being marketed and how advisors are engaging with their clients.
What is your firm’s best strategy to improve adoption? Do you have a skill or will issue? Should your higher priority be a focus on foundational training or greater depth of planning? PlanningInsights™ can help answer these questions and help you understand if you are a leader or a laggard as you determine your strategies and initiatives for your businesses in 2021.
For more information about PlanningInsights™, click here.
Advicent is the sponsor of 2019-2020 PlanningInsights™.
Advicent is the financial planning technology provider of choice for over 140,000 financial professionals across over 3,000 firms worldwide, including four of the top five custodians, seven of the top 10 North American banks, and seven of the top 10 North American insurance firms. The NaviPlan Platform, powered entirely by API technology, powers scalable financial planning experiences; compliance workflow management processes; fully branded client experiences; and superior cash flow and goal-based calculations. The NaviPlan Platform is designed to satisfy the needs of every investor and is used in firms of all sizes. Through our innovative product capabilities and dedicated services, we help thousands of financial professionals and their clients understand and impact their financial future. To learn more, visit advicent.com or email firstname.lastname@example.org.