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Key Benefits of Outsourcing Financial Planning

by | Nov 7, 2017 | Blog

“Reasonable compensation,” “best interest,” and “prudent process” are a few DOL key phrases driving significant change in advisory firm practices this year. Firms are evaluating their value props, adding new services and ensuring all processes and client interactions are adequately documented to ensure compliance. Never before has providing financial planning services made more sense, and frankly, not providing them could prove to be fatal for your practice over the long-term.

Delivering financial planning services aids in justifying your value, helps to ensure all recommendations are in the best interest of clients and serves as part of a documented prudent process. But what if financial planning has never been a core component of your practice, and you do not have the time and resources to commit to creating detailed financial plans?

If you anticipate all of your clients will be receiving a comprehensive financial plan as part of your services, it’s best to allocate permanent resources to the initiative including obtaining financial planning software, exploring becoming a Certified Financial Planner™ (CFP®) practitioner or hiring a para-planner. However, if your volume does not support this level of commitment, outsourcing may make more sense and can provide your practice with these added benefits.

  1. No Software License Required.

When you outsource your financial planning services, you do not need to subscribe to expensive financial planning software. Look to partner with a provider who already licenses leading software such as eMoney or MoneyGuidePro and is already skilled at entering the data and conducting the analysis.

Another alternative is to spend the extra money to license the software, since they also provide client-facing tools that help you deliver a 24/7 online experience, then add an outsourced financial planning resource to your existing account.

  1. Advisor Coaching Included.

Your outsourced solution should include professional advisor coaching to help you prepare for upcoming client meetings by reviewing the financial plan, discussing items of consideration and potential strategies/ideas around the various client recommendations modeled. After each case, your knowledge and confidence in presenting key financial planning concepts grows!

  1. Increase Trust and Credibility.

Some financial planning resources will even participate in your client meetings in-person or over the phone and represent your firm as part of the team. You can build credibility and demonstrate added value to clients, without having to hire a full-time para-planner.

As with any outsourcing decision, finding the right partner is critical to your overall success! Knowledge, experience, client service and presentation skills are paramount when it comes to delivering financial planning services. Advisors who have partnered with Financial Advocates have the added benefit of our outsourced virtual financial planning resource at their fingertips. If this is a service you are looking to implement in your practice, we can help you determine next steps to take.