Software technology continues to change our world and — for financial advisors — this can often happen more rapidly than we realize.
Advanced financial planning software not only streamlines your workflow but also provides a competitive edge.
This is especially true for estate planning and tax planning software, which are becoming indispensable tools for the modern demands of more comprehensive financial planning.
- Adding the right financial planning software to your firm is essential for staying competitive and meeting client expectations.
- By integrating estate and tax planning into your services, you can provide comprehensive financial planning for your clients.
- Consider ease of use, customer support, cost-effectiveness, and integration capabilities when selecting software.
As an already-established financial advisor, you might be concerned that your new competitors are choosing financial planning software for their firms that you’re not even aware of.
You are busy seeing clients, not vetting software systems.
Trying to stay abreast of every new financial tool can be overwhelming and frustrating, particularly since new software seems to be developed almost overnight.
You need a way to determine what software tools you need that will not only add more dimensions to your already substantial list of offerings, but will also make your firm run more efficiently.
You also want to invest in software tools that aren’t going to break the bank.
Let’s take a deeper dive into the most important and impressive software solutions on the market today that will make your clients happy while also helping your business run more efficiently at the same time.
From Then to Now: The Evolution of Financial Planning
The world of financial planning is shifting towards a more holistic and comprehensive approach.
Gone are the days when financial planning was limited to looking at a person’s financial statements or helping with investment management.
Today, most clients want their financial advisors to integrate all aspects of their financial lives, including estate planning, tax planning, and retirement planning.
This comprehensive approach not only meets your client’s needs more effectively but also strengthens your client relationships and enhances the overall service you can offer.
Why have we turned to our financial advisors to help us with an overall strategy for our financial futures?
There are a few reasons for this:
Expertise and Knowledge:
Financial advisors have specialized knowledge and experience in managing finances, investments, and planning for the future. They stay updated with the latest financial trends and regulations, ensuring that their clients receive informed and effective advice.
Holistic Approach:
Advisors offer a comprehensive view of financial planning, integrating various aspects such as retirement planning, estate planning, tax strategies, and investment management into their financial models. This holistic approach ensures that all elements of a client’s financial life are aligned and working towards their long-term goals.
Personalized Strategies:
Financial advisors tailor their advice to meet the unique needs and goals of each client. They take into account individual circumstances, risk tolerance, and future aspirations to create customized financial plans that provide clarity and direction.
Peace of Mind:
By entrusting their financial planning to a professional, clients can reduce stress and uncertainty about their financial future. Advisors provide ongoing support and adjustments to plans as needed, helping clients stay on track and feel more secure about their financial well-being.
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Holistiplan was designed by experienced advisors Roger and Kevin to streamline your financial planning process. Achieve more for your clients in less time
Holistic…What? The Definition of Comprehensive Financial Planning
Using terms like “comprehensive,” “collaborative,” “all-inclusive,” or “holistic,” sounds great, right?
But what do these terms actually mean when it comes to financial planning?
Let’s look at what typically makes up a complete financial planning platform for today’s modern client:
Investment Management:
This involves creating and managing a diversified portfolio tailored to the client’s risk tolerance, time horizon, and financial goals.
Investment management often includes selecting appropriate asset classes, monitoring market conditions, and rebalancing the portfolio to optimize returns and minimize risks.
Retirement Planning:
Planning for retirement will help clients develop strategies to ensure a comfortable retirement by setting up retirement accounts (like IRAs and 401(k)s), calculating the amount needed for retirement, and planning for income streams.
This also includes strategies for maximizing Social Security benefits and managing retirement withdrawals to sustain income throughout retirement.
Estate Planning:
Assisting clients in creating wills, trusts, and other legal documents is all part of good estate planning to ensure their assets are distributed according to their wishes.
It can also include setting up powers of attorney and healthcare directives.
Tax Planning:
Tax planning helps clients implement strategies to reduce tax liability through careful planning and use of deductions, credits, and tax-efficient investments.
Holistic tax planning should also include year-round tax planning to optimize the timing of income, deductions, and investments to minimize taxes owed and maximize after-tax returns.
Cash Flow Management:
Analyzing the client’s income and expenses will help create a budget that supports their financial goals. This involves tracking spending, identifying areas for savings, and ensuring there is sufficient liquidity for daily needs and emergencies.
Effective cash flow management helps clients live within their means and save for future goals.
Debt Management:
Debt management helps your clients to manage and reduce debt, including strategies for paying off high-interest debt first, consolidating loans, and creating a repayment plan.
This helps clients reduce their debt burden, improve their credit score, and free up resources for other financial goals.
Philanthropic Planning:
Assisting clients with charitable giving strategies allows them to align their values with their financial goals.
This includes setting up donor-advised funds, charitable trusts, and other vehicles that provide tax benefits and ensure that charitable contributions are used effectively.
Efficiency Meets Value in Financial Planning
Holistiplan bridges the gap between speed and quality, helping advisors like you deliver greater value to every client
New Kids on the Block: Why Estate and Tax Planning Can No Longer Be Left Out
Your clients understand the benefit of having a “one-stop shop” when it comes to all their financial needs.
Are you prepared to offer it to them?
While you have plenty of resources when it comes to investment strategies and portfolio management, integrating estate and tax planning into your services can significantly enhance the value you provide.
Here’s how:
Estate Planning
Traditionally, estate planning has been the domain of estate planning attorneys.
Today, estate attorneys still create the documents and the legal jargon surrounding estate planning needs.
However, financial planners are increasingly playing a crucial role in their clients’ estate planning needs.
Advisors come into play when it comes to the review of the estate plan, which should happen every year.
They review the beneficiaries, and manage the “who gets what” especially as their assets change over time.
This can be particularly important for blended families, or people with complex estates and lots of moving parts.
By incorporating estate planning into your services, you can help clients ensure their assets are distributed according to their wishes and minimize estate taxes.
Tax Planning:
Up until recently, tax planning has typically been handled by CPAs and tax advisors.
But time is increasingly valuable, and your clients are looking for ways to simplify their lives while also getting accurate financial reporting and easy-to-understand financial data.
Financial planners can play an important role in this, offering their clients increased services while also adding value to their relationship.
By offering tax planning to your menu of financial tools, you can help your clients optimize their tax situation, reduce their tax liability, and plan for future tax obligations.
Here are the things you want to look for when considering tax planning software:
Current Tax Year Projections:
By looking at your latest tax return, the software should be able to project your tax liability for the current year, helping you and your clients plan more effectively.
Comprehensive Tax Calculations:
The software should handle a wide range of tax calculations, including federal, state, and local taxes. It should also support various tax scenarios and client situations.
Real-Time Compliance Updates:
Ensure the software provides real-time updates on tax laws and regulations to keep your tax planning strategies compliant and up-to-date.
Integration Capabilities:
Look for software that integrates seamlessly with other financial planning tools and accounting software you use, such as QuickBooks or other CRM systems.
User-Friendly Interface:
A straightforward and intuitive interface can make the software easier to use, reducing the learning curve for you and your team. Having a client portal will also make it easier for you to exchange information with clients in a secure way.
Scenario Analysis and Forecasting:
The ability to run different tax scenarios and forecasts can help you and your clients understand the potential impact of various tax strategies.
Client Collaboration Tools:
Features that allow for easy collaboration with clients, such as secure document sharing and interactive tax advice, can enhance client engagement and satisfaction.
Customizable Reports:
The ability to generate detailed and customizable tax reports can help you provide clear and personalized insights to your clients.
Cloud-Based Accessibility:
Cloud-based software allows you to access your tax planning tools from anywhere, providing flexibility and convenience.
Cost and Pricing Model:
Consider the cost of the software and its pricing model. Some options offer pay-as-you-go models, while others may require a subscription.
Financial advisors play a pivotal role in an individual or family’s overall financial health.
Arming yourself with as many resources as possible will help you to see the whole picture, and thus provide the most holistic financial plan you can for each client’s specific needs.
Holistiplan: Adding Value to Every Client’s Financial Plan
When you decide to invest in tax planning software, you are making a commitment to provide every client with the most comprehensive financial guidance that’s available today.
You are also committing to finding ways to preserve and optimize your own time.
This is why Holistiplan was created.
Holistiplan is the brainchild of two financial professionals who wanted the best financial planning software tools possible for their clients. They created Holisitiplan to help themselves and other financial professionals add more value for their clients while also making the financial planning process easier for the advisor.
Today, over 30,000 advisors are benefitting from their creation.
If you are thinking about adding another tool to your firm’s financial toolbox, reach out to Holistiplan to see how we can help.
With our comprehensive tax planning and analysis capabilities, Holistiplan can help you provide deeper insights and more personalized advice to your clients.
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