While it’s crucial to have a solid financial plan in place, stress testing that plan and assessing contingency risk is also essential, according to eMoney.
This is especially true at a time like now, when economic circumstances can be unstable due to inflation, continued pandemic-related volatility and supply chain issues, planning experts said on Tuesday. financial company of the Fidelity-owned company, during the webinar “5 ways to add sizzle”. to your stress tests.
“With inflation and market volatility still present and the potential for changes [in] taxes and more, maybe it’s time to put your client’s plan to the test and see how it would perform under a myriad of conditions,” suggested Joseph Buhrmann, senior management consultant for the financial planning practice. at eMoney Advisor, at the start of the webinar.
“A financial plan is never a one-time event,” said Michelle Riiska, financial planning services consultant at eMoney Advisor. “To be effective, financial planning must be an ongoing process.”
Advisors should help clients manage all aspects of their financial life and maintain dynamic plans that can absorb changes in the market, personal situations and priorities, she added.
In addition to testing clients’ financial plans, Buhrmann suggested advisors assess their client experience and find other ways to engage digitally; elevate their exams, focusing on holistic planning; and ensure you have a technology stack that enables engaging and scalable planning.
Take a look at the gallery above to see what he and Riiska cited as eight good reasons why financial plan stress testing is so important for advisors and their clients.