The unprecedented nature of the current financial crisis certainly underscores the importance of sound professional advice. Due to this volatility, and because the Obama administration is likely to impose material regulatory and tax code changes, a financial plan developed just six months ago may no longer make sense.
Financial planning software may be the most important piece of technology an advisor has in his arsenal to ensure an existing client has the right roadmap going forward. I recently spoke with senior managers from two of the largest financial planning software providers and got the scoop on plans for the coming year and beyond.
Money Guide Pro — Money Guide Pro has been a leader in the financial planning software industry for 25 years. Since the launch of its new financial planning platform, G2, in September 2008, MGP has received a lot of press. In fact, Joel Bruckensteing cited it as “software product of the year” for 2008. According to Bob Curtis, CEO of Money Guide Pro, the G2 platform reflects a change in philosophy and a transition to “financial planning smartware.” For example, instead of simply giving an absolute return, G2 will allow clients to indicate scenarios in which they may be willing to accept different returns under different conditions. G2 has also made significant usability enhancements over prior versions that make it easier for advisors with different technological abilities to use the platform. Lastly, they’ve enhanced the ability for clients to participate in the planning process by introducing their “Goal Wizard.” This feature enables clients to start the planning process on their own time, which ultimately helps enhance advisor productivity. Over the next few months, MGP will introduce safeguards into the client module, which will allow advisors to limit the information accessible to clients.
NaviPlan — NaviPlan is the leading provider of financial planning software as measured by the number of advisors they serve. They pride themselves on having products that meet the financial planning needs for all types of clients, from smaller investors to the ultra high-net-worth investor. NaviPlan Standard was the first software program to integrate retirement distribution planning with financial planning. According to Cindy Bennett, NaviPlan’s director of marketing, they’ve recently added account transfer and redemption strategies that enable advisors to give clients more options and flexibility in achieving their retirement goals. The addition of an at-a-glance “traffic light” cash flow deficit and surplus tool also helps advisors to quickly determine whether a plan is running a cash flow deficit during the pre-retirement or retirement period. This new feature is particularly timely given current market conditions.
An investment in the right financial planning platform can be a significant determinant in the long-term success of your practice. Take the time to understand the various financial planning software solutions available in the marketplace today.
Marc Butler is managing director with iNautix (USA) LLC, an affiliate of Pershing LLC in Jersey City, N.J. He can be reached at mbutler@inautix.com.