The Cost of Technology for Financial Planners

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Technology is an integral part of our lives and a necessary cost for any financial advisory practice. It streamlines your processes and improves communication with your clients. However, it often comes with a hefty price tag. Between portfolio performance management and reporting, a customizable client portal, a CRM system, streamlined billing features, IT, a financial planning software subscription, etc., costs add up quickly.

Most advisory firms that specialize in wealth management use three technology platforms: financial planning software, portfolio accounting software, and a customer relationship management (CRM) software. Each of these platforms has its own benefits, but most firms find that a combination of all three provides the best results.

Let's take a closer look at the functionalities and costs of each.

Financial planning software

As the name suggests, financial planning software is used to build comprehensive financial plans for clients. It's a valuable tool that can be used to track income, expenses, investments, and debts, as well as create a budget and track progress towards meeting financial goals.

There are a lot of options on the market. However, most packages fall into one of two categories: those that are good for general financial planning and those that are more specialized. General financial planning software packages, like MoneyGuidePro and RightCapital, typically cost between $1,000 and $1,500 per advisor per year. These packages are designed to be comprehensive, offering features like budgeting, investment tracking, and goal setting. If you're looking for something more specific, like for retirement or estate planning, there are packages that specialize in those areas. However, those packages will likely be more expensive. Before deciding which software to use, sit down and assess your needs to ensure that you select a package that will help you meet your goals.