The Practice of Financial Planning: An Essential Tool for Regaining the Trust of the Wealthy
Report Summary
The Practice of Financial Planning: An Essential Tool for Regaining the Trust of the Wealthy
Though financial planning is the key proposition of wealth management firms as they help consumers through the current financial crisis, nearly half of all advisors do not currently use this service to its full potential.
Boston, MA, April 8, 2009 – A new report from Aite Group, LLC examines the current adoption of financial planning across a diverse set of financial advisors, including independent registered investment advisors (RIAs), registered representatives at independent broker/dealers, and employee broker/dealers. The report shows the effect financial planning can have on an advisor's book of business and production, and explores the correlation between financial planning technology integration and advisor productivity.
The current credit crisis and associated market downturn have drastically affected consumers' savings. Today more than ever, consumers require financial planning services, yet may be wary of financial advisors. Financial planning is a crucial tool for advisors seeking to service existing clients and acquire new ones. Fifty-four percent of advisors consider financial planning an "extremely effective" or "very effective" client acquisition tool. Advisors who have provided financial planning services for a majority of their clients are convinced that these services are an invaluable client acquisition tool that allows them to grow their practice substantially.
"Financial planning allows advisors to assess a clients' financial situation, determine if a client is on track to reach set goals, perform simulations on various investment strategies, and pick the most appropriate investment strategy for each client," says Alois Pirker, senior analyst with Aite Group and author of this report. "Aside from delivering great value to clients, financial advisors who prove themselves effective in helping them with important investment decisions have a much better chance to regain and retain client trust which may have been lost in the market crisis."
This 29-page Impact Report contains 22 figures and three tables. Clients of Aite Group's Wealth Management service can download the report.