Did you know that nearly 80% of financial advisors use financial planning software? This tech helps them improve their services and get better results for their clients. Financial planning software is key for advisors wanting to make their work easier and offer more to their clients.
We're going to look at the top 5 financial planning software solutions advisors trust. These tools are made to meet the specific needs of advisors. They help advisors plan better, work more efficiently, and give their clients great value.
What Is Financial Planning Software?
Financial planning software is a digital tool designed to help individuals and financial advisors manage and organize finances effectively. It offers a range of features, including budgeting, expense tracking, investment management, tax planning, and goal setting, enabling users to gain a comprehensive view of their financial health.Â
With real-time insights, scenario analysis, and personalized reports, financial planning software assists in making informed decisions, optimizing financial strategies, and achieving both short-term and long-term financial goals. It also ensures data security and integration with financial institutions to offer a seamless and secure financial management experience.
Why Is Financial Planning Software Important?
Financial planning software empowers users to take control of their financial future. It provides a structured approach to managing finances. It helps individuals and financial advisors track income, expenses, and investments while offering tools for forecasting and scenario analysis to predict financial outcomes.Â
The software enables better decision-making, as it provides real-time insights and personalized recommendations, ultimately helping users achieve their financial goals.Â
With features ensuring data security and integration with financial institutions, it provides a comprehensive and secure platform for financial management.
Financial planning software helps advisors work better, make smart choices, give personalized advice, and offer full financial planning services. Using this software, advisors can improve their work and give great value to their clients.
Top 5 Financial Planning Software
Let’s take a look into the top financial planning software tools used by professional financial advisors.
1. Kohezion
Kohezion allows you to build a custom financial services database, centralizing financial assets, client data, and internal workflows. It’s a low-code platform that empowers you to tailor your solution to specific needs.
Top Features:
- Customizable Applications: Create custom apps without coding, addressing unique financial workflows.
- Risk Management: Identify, assess, and mitigate risks (credit, market, operational).
- Financial Reporting: Streamline report generation and data analysis.
- Client Relationship Management (CRM): Manage client interactions and track leads.
- Data Security: Robust encryption, access controls, and compliance with regulations.
Pros:
- Flexibility: Customize fields, forms, and workflows according to your financial planning needs.
- Cost-Effective: Build your own solution without extensive development costs.
- Fast Deployment: Prototype delivered in weeks, not months.
Cons:
- Limited Integrations: Consider the available integrations.
- Pricing: Evaluate costs based on usage.
Best For: Large businesses seeking flexible financial planning tools.
2. MoneyGuidePro
MoneyGuidePro offers foundational to sophisticated planning experiences. Advisors can engage clients through micro and holistic planning, addressing complex financial topics.
Top Features:
- MyBlocks: Client-led planning tool breaking down financial topics for prospecting and engagement.
- Wealth Studios: Illustrate income distribution, tax planning, and annuity strategies.
- Visualization: Interactive sliders for clients to vary plan elements and visualize impact.
- Holistic Stress Testing: Plan for external factors and answer tough questions.
- Cash Flow Chart: Detailed retirement cash flow projections.
Pros:
- Customization: Tailor plans to client needs.
- Ease of Use: Intuitive interface for advisors and clients.
- Financial Wellness: Motivates clients toward better financial outcomes.
Cons:
- Pricing: Pricing can be high for smaller practices
- Learning curve: Steep learning curve for new users.
Best For: Holistic financial planning and goal-based scenarios.
3. eMoney Advisor
eMoney Advisor provides robust solutions for advisors, planners, and RIAs. It allows you to organize client data, map out financial goals, and stress-test plans for risks1.
Top Features:
- Monte Carlo Analysis: Plan for various scenarios and eventuality.
- Account Aggregation: Consolidate all client financial information in one place.
- Client Portal: Maintain an always-on connection with clients.
- Decision Center: Interactive tools to uncover needs and pitfalls.
- Plan Summary: Personalized experiences that scale with client needs.
Pros:
- Customization: Tailor plans to individual client situations.
- Efficiency: Save time and enhance accuracy with centralized data.
- Client Engagement: Interactive tools build stronger relationships.
Cons:
- Pricing: Higher pricing tier for advanced features
- Initial setup: Initial setup complexity
Best For: Holistic financial planning and client collaboration.
4. RightCapital
RightCapital transforms complexity into clarity with ease, precision, and dynamism. It empowers advisors to create personalized financial plans, stress-test scenarios, and engage clients effectively.
Top Features:
- Interactive Retirement Planning: Clearly illustrate multiple scenarios, stress tests, and retirement projections.
- Tax-Efficient Distribution: Show optimal tax-efficient withdrawal strategies and Roth conversions.
- Insurance Needs Review: Evaluate client protection needs (disability, death) comprehensively.
- Risk Tolerance Assessment: Incorporate risk scores into holistic planning.
- Beautiful, Intuitive Financial Plans: Create personalized summaries with charts and notes.
Pros:
- Customization: Tailor plans to individual client situations.
- Efficiency: Centralize data, streamline workflows, and enhance accuracy.
- Client Engagement: Interactive tools build stronger relationships.
Cons:
- Integrations: Limited integrations
- Users: Smaller user community
Best For: Tax-efficient retirement planning.
5. Orion
Orion Planning (formerly Advizr) connects clients’ financial goals with investment performance data, creating actionable plans that turn aspirations into reality.
Top Features:
- MyBlocks: Client-led planning tool for breaking down financial topics.
- Wealth Studios: Illustrate income distribution, tax planning, and annuity strategies.
- Visualization: Interactive sliders for visualizing plan adjustments.
- Cash Flow Chart: Detailed retirement cash flow projections.
- Customizable Reports: Tailor reports to clients’ unique needs.
Pros:
- Customization: Adapt plans to individual client situations.
- Efficiency: Centralize data, streamline workflows, and enhance accuracy.
- Client Engagement: Interactive tools build stronger relationships.
Cons:
- Integrations: May require additional integrations
- Learning curve: Steep learning curve for complex features
Best For: Advisors seeking portfolio insights and performance tracking.
Benefits of Financial Planning Software
Financial planning software helps financial advisors a lot. It makes their work easier, helps them make better decisions, and improves how they serve their clients. Let's look at the main advantages of using this software:
Budgeting and Expense Tracking
Financial planning software lets advisors easily track their clients' money coming in and going out. It has tools for budgeting and tracking expenses. This helps clients manage their money better, spot where they spend too much, and make smart financial choices.
Investment Management
Financial planning software has strong tools for managing investments. Advisors can check on investment portfolios, see the risks, track how well they're doing, and suggest smart investments. Everything is in one place.
Financial Goal Setting
Financial planning software helps advisors help their clients set and keep track of financial goals. They can set goals, use resources wisely, and check on progress. This keeps clients on the right path to their financial goals.
Tax Planning
Financial planning software makes tax planning easier for advisors and their clients. It has tools for calculating taxes and analyzing different scenarios. This helps advisors find the best tax strategies, save clients time and money, and improve their tax efficiency.
Real-time Financial Insights
Financial planning software gives advisors real-time financial data and insights. They can see how clients are doing financially, spot trends, and analyze important metrics. This helps them make timely recommendations and adjust strategies as needed.
Automation of Financial Tasks
Financial planning software automates tasks like data entry, report making, and document handling. This makes advisors more efficient, cuts down on mistakes, and lets them focus on important tasks like working with clients and planning strategies.
Scenario Analysis and Forecasting
Financial planning software lets advisors do scenario analysis and forecasting. They can model different situations and see how they might turn out. This helps clients make informed decisions, understand the effects of different choices, and plan for the future.
Centralized Financial Information
Financial planning software keeps all financial information and documents in one place. This means advisors don't have to use many systems or spreadsheets. They get a full view of their clients' finances for better planning.
Customizable Reporting
Financial planning software lets advisors make reports that fit their clients' needs. These reports can include financial summaries, updates on goals, investment performance, and tax forecasts. This gives clients clear information for making smart decisions.
Risk Management
Financial planning software has tools for managing risks. Advisors can spot and analyze risks, plan for them, and diversify portfolios. This helps clients prepare for unexpected events that could affect their finances.
Improved Decision-Making
Financial planning software gives advisors the tools and data they need for smart decisions. With detailed financial insights, advanced analytics, and simulation tools, advisors can look at different scenarios, weigh options, and suggest the best strategies for reaching clients' financial goals.
Access to Professional Advice
Financial planning software connects advisors with experts, training, and best practices. This means advisors can stay up-to-date with the latest trends, changes in laws, and investment strategies. This helps them improve their skills and serve their clients better.
Secure Data Storage
Financial planning software takes data security and privacy seriously. It uses top encryption and multi-factor authentication to protect client information from unauthorized access. This keeps client data safe and secure.
Integration with Other Financial Tools
Financial planning software works well with other financial tools like accounting software, CRM systems, and portfolio management platforms. This integration removes data silos, makes workflows smoother, and boosts overall efficiency.
Enhanced Accuracy and Efficiency
Financial planning software automates calculations, cuts down on manual data entry, and reduces the chance of mistakes. This makes advisors' work more accurate and efficient. They can make reliable reports, do complex analyses, and give clients trustworthy advice.
With all these benefits, financial planning software helps financial advisors offer top-notch services, help their clients succeed, and excel in today's fast-changing financial world.
Features to Look for in a Financial Planning Software
When picking financial planning software, it's key for financial advisors to look at certain features. These features should match their needs and goals. With these features, advisors can make sure the software helps them give great financial planning services to their clients.
Here are some key features to think about:
User-Friendly Interface
A user-friendly interface ensures that financial planning software is easy to navigate and use, regardless of the user's technical expertise. Key elements include intuitive navigation, clear layout, accessible menus, and interactive tutorials. This feature minimizes the learning curve and maximizes user engagement and productivity.
Comprehensive Financial Reporting
Comprehensive financial reporting provides users with detailed insights into their financial status and performance. This feature includes generating standard and custom reports covering various aspects such as income, expenses, asset performance, liabilities, and net worth. It often involves data visualization tools like graphs and charts to present information clearly and concisely.
Budgeting and Expense Tracking Tools
Budgeting and expense tracking tools allow users to set financial limits and monitor their spending patterns. The software categorizes transactions, identifies spending trends, and provides alerts when budgets are exceeded. This feature helps users maintain financial discipline and make informed decisions about spending adjustments.
Investment Management Capabilities
Investment management tools assist users in managing their investment portfolios,a s they provide real-time data on asset performance, market trends, and portfolio diversification. Features include performance analysis, risk assessment, and recommendations for rebalancing or optimizing investment strategies to achieve financial goals.
Goal Setting and Tracking Functionality
Goal setting and tracking features enable users to define financial objectives and monitor progress toward achieving them. This includes setting specific, measurable goals, such as saving for retirement, buying a home, or funding education. The software provides updates on goal progress and suggests actions to keep users on track.
Scenario Analysis and Forecasting Tools
Scenario analysis and forecasting tools allow users to model different financial situations and predict potential outcomes. Users can input variables like changes in income, expenses, or investment returns to see how these affect their financial plans. This feature helps in planning for uncertainties and making strategic adjustments.
Tax Planning Capabilities
Tax planning capabilities assist users in optimizing their tax liabilities, as they offer insights into deductions, credits, and other tax-saving opportunities. The software may provide tools for estimating tax obligations, tracking deductible expenses, and understanding the impact of tax law changes on financial plans.
Mobile Access and Compatibility
Mobile access and compatibility ensure that users can access their financial data and manage their finances on the go. The software is often available as a mobile app or through a responsive web interface, providing flexibility and convenience for users who need to make financial decisions while away from a desktop computer.
Data Security and Privacy Measures
Data security and privacy measures protect user information from unauthorized access and data breaches. Features include encryption, multi-factor authentication, and compliance with industry standards and regulations like GDPR or CCPA. This ensures that sensitive financial data remains confidential and secure.
Integration with Banks and Financial Institutions
Integration with banks and financial institutions enables seamless connectivity between the software and users' financial accounts. This feature allows for automatic data import, real-time updates on account balances and transactions, and a comprehensive view of financial status, all within a single platform.
Automation of Routine Tasks
Automation of routine tasks handles repetitive activities such as bill payments, transaction categorization, and report generation. This feature saves users time, reduces errors, and increases efficiency, as it allows them to focus on more strategic financial decisions.
Customizable Dashboards
Customizable dashboards allow users to personalize their software interface to display the most relevant financial data and metrics. Users can choose which elements to include, such as income, expenses, investments, or financial goals, providing a tailored view that aligns with their specific needs and preferences.
Collaboration and Sharing Features
Collaboration and sharing features facilitate communication and collaboration between users and their financial advisors, family members, or other stakeholders. This includes sharing financial data, setting permissions for access, and enabling real-time discussions to support joint decision-making and planning.
Customer Support and Resources
Customer support and resources provide users with assistance and guidance on using the software effectively. This feature includes access to support teams via phone, email, or chat, as well as resources like tutorials, FAQs, and user manuals to help users navigate the software and resolve any issues.
Regular Updates and Improvements
Regular updates and improvements ensure that the software remains current with the latest industry trends, technological advancements, and user needs. This includes adding new features, enhancing existing functionality, and addressing any bugs or issues, ensuring that users benefit from a reliable and up-to-date financial planning tool.
Manage Your Financial Planning with Kohezion
Kohezion is a top choice for financial planning software. It gives financial advisors a powerful and easy-to-use platform. With Kohezion, advisors can handle their clients' financial planning, keep an eye on investments, make custom financial plans, and work together with clients.
The software has a simple interface, strong reporting tools, and works well with other financial tools. Kohezion makes financial planning easier and helps financial advisors give top-notch service to their clients.
Conclusion
Financial planning software is key for financial advisors to manage client finances well. It helps in optimizing investment strategies and giving personalized advice. The top 5 solutions talked about in this article have many features and benefits. They help financial advisors in their work.
Using financial planning software can make your work easier and improve how you work with clients. It lets you make decisions based on data. These tools have features like tracking goals, analyzing portfolios, and modeling scenarios. This helps you make detailed financial plans for your clients' needs.
When picking the right financial planning software, think about what you need and look at what each solution offers. Choose software that works well with your current systems and keeps client data safe. Also, make sure it has great customer support. This way, you can use the software's full potential to meet your goals and serve your clients well.
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Frequently Asked Questions
Financial planning software enhances client-advisor relationships, as it provides clear, transparent, and interactive financial plans. It allows advisors to present complex financial data in an understandable format, fosters real-time collaboration, and helps clients track their progress towards financial goals.
Yes, most financial planning software solutions are designed with compliance in mind. They often include features that help advisors adhere to regulatory standards, such as data protection, reporting requirements, and audit trails, ensuring that all financial activities are documented and compliant with relevant regulations.
Financial advisors should update their financial planning software as new versions or patches are released to ensure they benefit from the latest features, security enhancements, and compliance updates. Staying current with updates helps maintain software performance and protects against potential vulnerabilities.
