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How can advisors tackle goal-based wealth planning efficiently?

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How can advisors tackle goal-based wealth planning efficiently?

According to Ernst & Young’s 2021 Global Wealth Research Report, more than 38% of clients believe goal-based wealth planning to be a priority for them. But when such planning is built upon a castle of sand and clients are unable to articulate clear goals, how can advisors help them to pursue it effectively?

Image showing a graph from the Ernst and Young report, which shows that the percentage of clients considering goal-based wealth planning a priority has jumped from 28% to 38% from 2019 to 2021.

The importance on saving to meet financial goals has jumped from 28% to 38%

Earlier this year, Ernst & Young released their 2021 Global Wealth Research Report, a follow-up to one published two years prior. The results were clear: since the previous report, the percentage of clients who consider meeting their personal financial goals a priority has jumped from 28% to 38%. In today’s fast-paced and ever-changing world, where crises (such as the COVID-19 pandemic) can appear out of seemingly nowhere, clients are starting to put more emphasis on mitigating risk by taking a step back from the ratrace and looking at the bigger picture. This is where goal based wealth planning comes in: by setting clear future milestones to work towards, clients can keep a clear goal in mind and stay on course despite volatility.

Advisors need tools to manage goal-based wealth planning effectively

However, goal-based wealth planning is often built on a pillar of sand: most of the time, clients are heavily reliant upon their advisors to guide them in articulating and realising their financial goals. Without an experienced and knowledgeable advisor or the right tools to set, track and manage goals, goal-based wealth planning often fails to be effective. This places a heavy burden on advisors, who have many challenges to navigate, be it simply drafting financial aspirations or adapting to each client’s unique circumstances and needs.

While this may have been a huge problem decades ago, advancements in digital technology mean that this burden can be eased. AI-based portfolio generation and robo advisory can not only present complex financial jargon in a way that is easy for clients without prior financial education to understand, but can also quickly generate and present potential portfolios almost instantly.

Set, track and manage financial goals with Privé Managers 

Privé Managers, for example, has tools that allow advisors to set and track goals, make and reallocate investments and construct portfolios, all the while being integrated to Privé’s comprehensive suite of digital solutions, such as risk profiling and more. By having all the individual modules to build an efficient digital advisory process, and removing the need to integrate multiple vendors into managing just one client’s portfolio, the planning process becomes even more efficient.

An image showing all the product features of Prive's goal based wealth management tool.

There is a new generation of clients that has grown up and matured during the digital age. Likewise, having a digital solution to a decades-old problem seems only natural. By making the process simpler for both clients and advisors, we can help to make goal-based wealth planning more effective and remove the barriers in pursuing long-term financial aspirations.

For more information on how Privé can help you with all your goal-based advisory needs, please visit our website, www.privetechnologies.com.

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