When it comes to financial planning, clarity is key. Clients value concise, easy-to-digest information that helps them make informed decisions without sifting through pages of dense reports or lengthy presentations. That’s where the one-page financial plan comes into play. It focuses on delivering clear, actionable insights that clients can easily understand, while also saving Advisors valuable time by simplifying the planning process.
In this article, we’ll discuss the core components of one-page financial plans and how these plans benefit Financial Planners, Investment Advisors, and their clients. We will also cover how to create personalized one-page financial plans using a dedicated financial planning platform like Snap Projections.
Main takeaways from this article
- A one-page financial plan offers a streamlined overview of a client’s financial plan, which simplifies complex strategies into clear, actionable insights.
- The one-page financial plan drives practice growth by promoting strong client relationships and improving efficiency.
- Key elements of the financial plan template should include defined goals, what assumptions were used, net worth details, as well as recommendations and action items.
- Best practices emphasize keeping the plan simple, using visuals, ensuring interactivity, and maintaining regular updates.
- Snap Projections helps Financial Advisors and Planners generate customized, one-page financial summaries that improve client understanding and engagement.
What is a one-page financial plan?
A one-page financial plan is a condensed summary of a client’s financial situation, objectives, and strategies. Unlike traditional financial plans that span dozens of pages, the one-page format captures the most critical information, presented in a clear, easily digestible format. The one-page approach is highly effective because it allows Financial Advisors, Wealth Managers, and clients to absorb the information quickly.
The SnapShot: a one-page financial plan summary report
Why Financial Advisors should use a one-page financial plan template
A traditional financial plan can be overwhelming, making it difficult for clients to stay engaged and focused. One-page financial plans offer several advantages for Financial Advisors:
Improves client understanding
Most clients do not want lengthy, 50-page reports. They may lose focus or struggle to absorb or even identify the key messages. People are busy and need something they can easily understand and grasp. If the information isn’t clear and straightforward, the message is lost, making it harder for clients to engage with and act on the advice.
Strengthens client engagement and buy-in
When clients see a comprehensive yet simplified overview of their financial roadmap, they are more likely to be engaged and committed to the plan. This sense of ownership improves buy-in and helps clients feel confident in their financial decisions.
Saves time and improves efficiency
Having a one-page financial plan helps Advisors save time by streamlining the planning process. With a clear, concise overview, Advisors can avoid lengthy explanations and repeated meetings, allowing them to focus on more strategic discussions. The simplicity of the one-page format also enables real-time and faster plan updates, leading to more productive client interactions and giving Advisors more time to focus on higher-value advisory work.
Supports long-term client relationships
A one-page financial plan allows for better ongoing communication between Financial Advisors and their clients. Regularly updating this plan can ensure that Advisors are engaged with their clients’ evolving needs, goals, and life events and that clients are kept informed of their financial progress.
Drives practice growth and scalability
Growing client bases are best managed with a streamlined process. Financial Advisors who use one-page financial plans are well equipped to support practice growth and scalability. Streamlining the financial planning process will ultimately lead to more efficiency and productivity for the practice.
Key elements of a one-page financial plan template
Snap Projections’ SnapShot feature simplifies the financial planning process by providing a concise one-page summary, with the option to expand to a two-page review by adding more sections. Advisors can choose from various elements to tailor the report, with the following being the most commonly included for a comprehensive overview of a client’s financial situation.
1. Goal Summary
The first step in preparing a financial plan is to identify clients’ financial goals. This section should focus on identifying SMART (Specific, Measurable, Achievable, Relevant, Time-bound) short-term, mid-term, and long-term financial goals, such as retirement, education, or purchasing a home.
The objective of this section is to provide a straightforward outline of the financial goals the client has decided upon, offering a concise summary to guide the rest of the financial planning process. It ensures both the Advisor and the client are aligned on their priorities, setting a clear direction for achieving the desired outcomes.
2. Assumption Summary
The Assumption Summary provides an overview of the key assumptions that guide the financial plan, ensuring clarity and transparency. By default, it includes:
- The client’s first name and life expectancy.
- The spouse’s (if applicable) name and life expectancy.
- The average inflation rate.
- The average rate of return before retirement.
- The average rate of return after retirement.
The included assumptions are customizable, allowing Advisors to adjust them based on the client’s specific circumstances and financial outlook. This section helps clients understand the key variables that shape their financial projections, providing a solid foundation for the financial plan. Adjusting these assumptions ensures the plan stays relevant as clients’ goals, economic conditions, and other factors evolve.
3. Net Worth Summary
The Net Worth Summary provides a chart that visualizes the client’s net worth over the course of the projection period, broken down by category (such as financial assets, real assets, and debts). This allows both Advisors and clients to see how the client’s financial position evolves over time.
The chart also highlights the first year of retirement, marked by the letter “R,” allowing clients to easily identify how their net worth might change when transitioning into retirement. This visual representation helps provide clarity on long-term financial trends and enables Advisors to make adjustments as needed to stay on track with the client’s goals.
4. Retirement Income Summary
The Retirement Income Summary provides a chart that illustrates the client’s cash inflows by category, including government benefits and the drawdown of financial assets. This breakdown helps Advisors and clients see how various income streams, such as pension, savings withdrawals, or other sources, contribute to the client’s financial picture as retirement progresses.
Like the Net Worth Summary, the first year of retirement is marked with the letter “R” on the chart, making it easy for clients to identify how their income distribution shifts when they transition into retirement. This visual representation offers a clear overview of future cash flows and enables both Advisors and clients to plan effectively for retirement income needs.
5. Goal Status
The goal Status section dynamically pulls in results from the Recommendations module that was used during the planning process. This can highlight options such as retiring earlier or increasing/decreasing spending to meet retirement income goals.
Advisors can also personalize this section by adding their own static text, either in place of or in addition to the pre-populated options, ensuring the report is tailored to each client’s specific needs, such as leaving a larger estate for beneficiaries.
6. Recommendation Summary
The Recommendation Summary is where Advisors can provide tailored recommendations for their clients based on their goals and financial situation. This section allows Advisors to highlight key insights, such as results that have exceeded expectations, as well as suggest next steps or strategies moving forward.
Advisors can enter and format static text or template variables, offering flexibility to customize the recommendations and provide actionable guidance for the client’s financial journey. Using the templated variables ensures that as plans are updated, the data within the SnapShot will be automatically updated as well, reducing manual work for the Advisor as plans are updated over time.
Additional sections for an annual/quarterly review or an Executive Summary to the full report
For an annual or quarterly review, or an Executive Summary to the full, comprehensive report, the one-page SnapShot can be expanded into a two-page summary by adding up to ten sections. The following sections can be added for a two-page financial plan:
7. Net Worth Statement Summary
The Net Worth Statement Summary provides a snapshot of the client’s current financial position at the start of the projection period. It includes a detailed table that lists the client’s assets and liabilities, offering a clear picture of their net worth at that specific point in time. This section does not show projections over time, but instead focuses on providing a static view of what the client owns and owes at the beginning of the plan.
Unlike the Net Worth Summary, which tracks changes in net worth over the projection period, the Net Worth Statement Summary offers a starting point for understanding the client’s financial situation, which can then be used as a basis for future projections and adjustments.
8. Estate Summary
The Estate Summary provides a chart that displays the client’s end-of-projections Estate After Tax, in both nominal and real dollars. This chart helps visualize how assets, debt, insurance proceeds, and taxes on estate impact the end Estate value.
This section provides an insightful overview of the client’s legacy plans and sets the stage for open communication to discuss estate planning needs.
9. Financial asset flows
The financial asset flows table provides an overview of the client’s annual contributions and withdrawals across various accounts, including Non-registered, TFSA, Registered accounts, and FHSA, over the first five years of the projections. It helps visualize the client’s savings and withdrawal strategy, showing how their financial assets are expected to grow or be used during the immediate 5-year period.
For pre-retirement clients, the table outlines planned contributions to savings accounts, while for post-retirement clients, it highlights withdrawal strategies, including RRIFs and non-registered accounts. It offers flexibility to show shifts in strategy, such as changes in contribution levels or asset utilization as the client progresses through different financial stages.
10. Expense summary
The expense summary provides a chart that displays the client’s base and additional expenses over the duration of the projections. This chart helps visualize how both fixed and discretionary spending are expected to change over time. The first year of retirement is clearly marked with the letter “R” on the chart, allowing clients to easily see how their expenses evolve as they transition into retirement.
This section provides an insightful overview of the client’s spending patterns and offers a clear understanding of how their financial situation may shift in the future.
How Snap Projections simplifies one-page financial planning
Creating a one-page financial plan requires clarity on what information matters most to each individual client, ensuring they receive a meaningful SnapShot of their financial situation. Snap Projections streamlines the creation of one-page financial plans by:
Generating professional, real-time SnapShot reports
Snap Projections empowers Financial Advisors to create polished, professional SnapShot reports—concise, one-page financial summaries that effectively present a client’s financial plan.
These reports provide a real-time overview of key financial metrics, enabling clients to quickly grasp the essential information. Automatically updated, SnapShot reports reflect the most current data that is within the plan. This means that as plans are updated, the SnapShot reports are instantly updated using dynamic variables, saving the Advisor time.
Helping Advisors run multiple financial scenarios
The ability to model and compare different financial scenarios is critical for effective planning. Snap Projections allows Advisors to simulate various “what-if” scenarios that provide insights into how different decisions can impact a client’s financial future.
This feature promotes proactive discussions on risk management, investment strategies, and savings plans, enabling clients to make more informed choices tailored to their individual circumstances.
Improving client engagement with clear, visual planning
Effective communication is essential in financial planning, and Snap Projections excels in providing visuals that make complex data accessible.
Graphs and charts clarify key points, ensuring clients can easily understand their financial projections. By transforming dense information into engaging visual formats, Advisors foster stronger client interactions and a deeper understanding of the options being discussed.
Saving time with automated financial calculations
The automation capabilities of Snap Projections reduce the time required for manual calculations and allow Financial Advisors to focus on strategy and relationship-building instead of running numbers and verifying calculations.
Automated calculations ensure accuracy and streamline the preparation of financial scenarios so Advisors can reinvest their time into meaningful client conversations. Every Advisor who uses Snap Projections saves five to ten hours per plan compared to other software or traditional manual systems like Excel.
Best practices for creating a one-page financial plan
While a full financial report should always be available for clients who prefer in-depth analysis, many clients will value the simplicity of a one-page overview. To ensure this summary report is as effective as possible, it’s important to follow best practices:
Keep it simple and focused
The essence of a one-page financial plan is simplicity. By keeping the information straightforward and focused on key metrics and goals, Advisors can ensure that clients are not overwhelmed. Highlighting only essential information allows for quick comprehension and aids in decision-making.
Use visuals to improve understanding
Incorporating visuals can greatly improve a client’s understanding of their financial plan. Using graphs and charts makes the document more engaging and allows clients to grasp complex ideas quickly. Visual aids can effectively communicate trends in income, expenses, and investment growth over time.
Make it interactive and customizable
An effective one-page financial plan is tailored to meet the unique needs of each client. Strive for interactivity in your plans to allow clients to explore different scenarios or adjust variables in real time. Customizable elements invite deeper engagement and make your clients feel involved in their financial decisions.
Ensure actionability
One-page financial plans shouldn’t simply be another document to review; they should be actionable roadmaps to financial success. Provide clear recommendations and next steps, and make sure that your clients understand what actions they need to take to meet their financial goals.
Review and update regularly
Financial planning is an ongoing process that requires regular revisits to ensure that it reflects current circumstances and goals to remain effective over time. Encourage your clients to review their one-page financial plan periodically and request updates as necessary to accommodate changes in life events or financial objectives.
Focus on growth with a one-page financial plan template
A one-page financial plan provides a powerful solution for Financial Advisors to communicate effectively with clients, build stronger relationships, and drive practice growth. By focusing on the most important information and presenting it in a clear and concise format using a one-page financial projection template, Advisors can empower clients to take control of their financial future.
Snap Projections simplifies the creation of these impactful one-page plans for Advisors to offer exceptional service with these features:
- Scenario Comparison and Quick Analysis: Instantly compare multiple financial scenarios on a single page, helping clients visualize the outcome of key decisions, such as decumulation strategies for retirement income and drawdown plans.
- One-page SnapShot report: This report serves as both a standalone client deliverable and an Executive Summary to the comprehensive financial plan report, providing personalized insights that keep clients engaged in their financial journey.
Experience how a one-page financial plan can strengthen client relationships and simplify financial planning. Start a 14-day free trial of Snap Projections today!
