Why Financial Advisors Should Have a Financial Plan For Every Single Client

Jun 30, 2023

Many Financial Advisors that we speak to are already creating financial plans for their clients. Typically, they’re reaching out to us because they want to improve their process. We also hear from Advisors who aren’t currently creating a lot of financial plans.

Typically, there are 3 main reasons why:

1. Lack of capacity — simply not having the time.
2. Lack of expertise — not really knowing where to start or what the basics are.
3. Lack of seeing the business case — the financial benefit to the practice is unclear.

And, there are plenty of other reasons that may come into play.

Complexity of client’s finances.
Some clients may have more complex financial situations than others, making it more challenging and time-consuming for Financial Advisors to create a comprehensive financial plan. Advisors may choose to focus their efforts on clients with more complex financial situations, which can result in the majority of their other clients being left without a financial plan.

Client preferences.
Some clients may not be interested in creating a financial plan or may not see the value in doing so. Financial Advisors may choose to focus their efforts on clients who are more interested in financial planning and are willing to invest the time and resources required to create a comprehensive plan.

Creating a financial plan can be costly, for both the clients and the firm, depending on the business model. Some clients may not be willing to pay for this service. Some Financial Advisors build the cost of financial planning into their management fees but will still incur the cost of the resources required to get the job done. Whatever your approach, there is some kind of cost associated with producing financial plans.


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The Business case on why Financial Advisors should build a financial plan for every single client.

In this spite of these challenges, there is an extremely strong business case as to why Financial Advisors should be building financial plans for as many clients as possible.

Getting on the Same Page.
Financial plans help Advisors and clients align their goals. By understanding what clients want to achieve financially, Advisors can create a roadmap to reach those goals together.

Taking a Deep Dive.
Financial plans allow Advisors to thoroughly assess a client’s overall financial situation. They look at income, expenses, assets, debts, risk tolerance, and investment preferences. This big picture view helps Advisors understand their clients better and provide suitable recommendations.

Navigating Risks.
Financial plans include strategies to manage risks like market fluctuations or unexpected life events. By identifying potential risks and having backup plans, Advisors can help clients safeguard their finances and protect their investments.

Smart Investing.
A good financial plan includes an investment strategy tailored to the client’s goals and risk tolerance. It suggests the right mix of investments, diversification, and smart decisions to maximize returns while managing risk. This way, clients can make informed investment choices and avoid knee-jerk reactions to short-term market swings.

Tax Savviness.
Financial plans take tax implications into account, aiming for tax efficiency. Advisors can suggest strategies to minimize tax burdens, such as tax-smart investment options or retirement accounts. By optimizing after-tax returns, clients get to keep more of their hard-earned money.

Stay on Track.
Financial plans need regular check-ins and adjustments. Advisors monitor progress, adapt to changes in clients’ lives or the financial landscape, and update the plan accordingly. This keeps the plan relevant and ensures it continues to serve the client’s evolving needs.

Building Trust and Engagement.
Creating a financial plan shows clients that Advisors are serious about their financial success. It builds trust by demonstrating expertise, professionalism, and a commitment to personalized advice. Clients appreciate the individual attention and feel more involved, leading to stronger, long-lasting relationships.



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Compliance and Documentation.
Financial plans also help Advisors meet regulatory requirements and maintain proper documentation. They ensure that Advisors follow rules and ethical standards. Plus, if any questions or disputes arise, having a documented plan brings clarity and serves as evidence of the agreed-upon recommendations and strategies.

In a nutshell, crafting financial plans for each client helps Advisors deliver tailored advice, mitigate risks, optimize returns, and foster strong relationships. It provides a structured framework to offer comprehensive financial solutions and showcase the value advisors bring to the table.

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In this captivating panel discussion, you’ll gain insights from four Financial Advisors, each offering a unique perspective — because even seasoned Advisors sometimes face challenges when shifting the client conversation from investments to planning.

During this session, you’ll learn practical tips and creative ideas to effectively demonstrate the true worth of planning. Learn how to initiate conversations that captivate your clients and generate excitement about the process. By the end, you’ll be equipped with actionable strategies to effectively show the value of planning and have engaging discussions with your clients.


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The Financial Advisor's Marketing Guide


The Financial Advisor’s Marketing Guide

Learn how to build an online presence, create and share valuable content, and engage with prospects and clients through email marketing.