The choice will depend on the advisor's style of presentation and the level of complexity he or she wants to show the client. However, many advisors also want to merge data from their client relationship management (CRM) software into retirement planning software, and here, the major software platforms may have an edge since most maintain relationships with other software manufacturers. An advisor can also consider the so-called integrated platforms such as eMoney Advisor (www.emoneyadvisor.com), Interactive Advisory Software (www.IASsoftware.com) and others that offer built-in data sharing.
Understandable For Them, Efficient For You
It's important that advisors be able to share data with their CRM programs, because it takes time to perform data entry in a retirement plan-to type in names, addresses, Social Security numbers, birthdates, etc., most of which are generally stored in the CRM application. When an advisor can migrate that data directly into the front end of a retirement plan, he or she can save hours of work and increase the efficiency (and the profitability) of the plan production.
But is that the only way to increase efficiency? Certainly there are additional things an advisor can do without sacrificing quality or compromising on regulatory and ethical issues. Finding retirement planning software that fits the advisor's style of presentation is one key. If an advisor finds a program that automates certain document production, he can focus on creating the recommendations, developing what-if scenarios and comparing a client's differing goals without a lengthy learning curve on the software itself.
An advisor can also save time by developing template presentation reports for the clients instead of writing plans from scratch. Of course, advisors usually want to avoid the appearance of a cookie-cutter or one-size-fits-all retirement plan. By building templates with merge codes (these pick up information unique to a client and inject it into a document), the advisor can customize the look and feel of the document to appear as though it were hand typed just for that client. Many CRM software programs offer a merge document capability where you can create and customize any sort of document. For those advisors who wish to create an abbreviated summary of recommendations, this type of document could prove to be invaluable, since advisors can create several versions of the merge document template to match differing types of clients (those with middle income, for instance, or high-net-worth clients or those with estate issues, etc.). Redtail Technology (www.redtailtechnology.com) offers such a function, as do others.
Even the live presentation meeting can be made more efficient, given the tools available in many types of software. For example, MoneyGuidePro offers presentation slides that show a client's current situation and then shows what happens when the timelines, assets and goal amounts, etc. are altered, illustrating a range of possibilities from ideal to merely acceptable.
It's important to find the right software for two reasons: making it efficient for yourself and making it understandable for them. If you face a drag on your efficiency, you face in turn, a drag on your profitability.
Next Month: Part Two-Preparing a Retirement Plan for the Advisor
David L. Lawrence, RFC, ChFE, AIF, is a practice efficiency consultant and is president of EfficientPractice.com, a practice consulting firm based in San Diego, Calif. (www.efficientpractice.com). The Efficient Practice offers an advisor network and a monthly newsletter.