5 Reasons To Marry Wealthtech and Goals-Based Planning

Gone are the days of the one-size-fits-all investment model. Today’s investors increasingly value and expect holistic advice that will help them achieve competing goals through a wide range of dynamic investment strategies. 

Clients may have similar short- and long-term goals, but their financial plans can vary dramatically depending on factors such as their time horizon, their saving and spending habits and their ability to tolerate risk. Leveraging a wealthtech platform that is built for goals-based financial planning can help advisors more efficiently personalize plans according to client needs.

Here are several benefits of wealthtech-powered, goals-based financial planning: 

  1. Provides a language and framework for client discussions. In previous eras, financial advisors spent most of their time with clients reviewing how portfolios performed against a benchmark, which is a backward-looking approach. Pivoting the discussion away from portfolio performance and toward life goals — i.e., looking forward — allows advisors to learn what clients want to achieve with their money. 

  2. More efficiently develops an appropriate asset allocation. Within the RobustWealth platform, advisors can link goals to specific investment accounts. After configuring the appropriate time horizon and risk tolerance settings, glidepath frameworks automatically manage clients’ money with advisors’ oversight. Advisors can easily adjust the risk level over the life of a goal.

  3. Envision progress toward goals. Once specific goals have been identified, advisors can itemize them on the client platform. Clients can then view their progress toward achieving goals such as repaying student loans or saving for retirement. Attaching emotional significance to investment performance that is otherwise clinical can help encourage positive financial behavior. 

  4. Better navigate tradeoffs. Using goals-based language can also help clients differentiate between needs, wants and desires. These more meaningful conversations empower advisors to help clients prioritize and achieve competing goals. They also change the advisor-client relationship, allowing advisors to serve as the Chief Financial Officer for a family rather than simply as a portfolio manager.

  5. Helps client retention. This automation enables financial professionals to spend more time with clients, increasing engagement and deepening the emotional connection. Through automation, and using tools to improve efficiency, advisors can increase the scope of their business, taking on more clients, including those who have smaller assets but great growth potential.

To learn how RobustWealth’s enhanced advisor platform can help you deliver more robust goals-based financial planning, schedule a demo today. 

About RobustWealth

RobustWealth is a fully integrated, digital advice platform for advisors and institutions. The private label platform offers a variety of sophisticated investment solutions that streamline back-office inefficiencies and help financial professionals focus on building strong, long-lasting relationships with their clients.

Founded in 2015 by financial industry veterans, RobustWealth was designed with the advisor in mind. The firm is headquartered in Lambertville, New Jersey with remote employees located across the world.

The subject matter in this communication is educational only and provided with the understanding that RobustWealth, Inc.® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

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