If you’ve never seen financial planning software for advisers, you probably assumed that anyone who helped others to plan out their finances had to be a math genius. As soon as you start looking at information on long term planning, you’ll run into a lot of information about projected growth rates and whether it’s better to use a retirement account where you pay the taxes now or one that lets you defer them until later. With the help of software, though, you can leave the math to a computer and focus on helping clients with the planning.
Financial Planning Software for Advisers Simplifies the Job
When someone comes in wanting help sorting out their finances, they’re not interested in whether you personally can quickly calculate the effects of continuously compounded interest over the next five years on their bank account balance. They want a person who can sit down and help them to figure out both where their money is and where it needs to be if they are going to meet their financial goals. While you should still have a basic understanding of the math involved, you can let software do the heavy lifting and free up your own mind to focus on looking at the outcomes and figuring out what they will mean for a particular client.
How This Lets Financial Advisers Offer Better Advice
Any given client will have a virtually infinite number of potential options in front of them. There are different banks, fees, types of retirement accounts, investment vehicles, and a huge number of tax laws. Any small change you make in the allocation of funds can have a big impact when you’re potentially letting it affect the financial picture over the course of decades. A computer program can recalculate its predictions and give new information on potential outcomes in a matter of seconds, where a human doing the math by hand would have to spend a great deal more time.
Photo Credits: http://creativecommons.org/licenses/by-sa/2.0/deed.en
This is great for your ability to provide clients with a clear picture of what their choices are and how those will likely play out. Rather than picking a few particularly likely options and focusing on calculating those to keep the workload manageable, you can play with any variable at any moment. That both allows financial advisers to better explore the possibilities and gives you a superior ability to illustrate the potential outcomes for the person you are helping.
A Faster Way to Learn Financial Planning
If you let computers do the tedious work for you, you can put most of your attention on the parts of the job where a human touch really matters. This reduces the amount of time that you have to spend working on building skills that aren’t really core to the services that you are going to be providing. If you want to get started and reach the point of being able to provide valuable advice as quickly as possible, you’ll find that using financial planning software for advisers eliminates a lot of the barriers.