Assets Allocation & Forcasts

Friday, June 17, 2016 Print Email

In today’s world of the robo advisor platform and IBM’s Watson Computer, many firms have deployed various methods of revenue generation which are now in jeopardy of getting their lunches eaten. The point here is that carrying out asset allocation and forecasts through an intelligent program for guiding your client in something enough for most clients. For the advisory organization, the only way of preventing extinction depends on the asset management fees and to offer advice on a wide range of financial, technical tax, economic, legal issues and also having a thorough understanding of what is very important to clients. For most of them, the answer is basically the same-family.

The successful operators of tax practices and traditional accounting do not always have much interaction with the family of the client. The only exceptions to this type of generational gap are clients with a business involving family members. However, in terms of family business, accounting firms can only have relationships with the members of family who indeed work in the business and only know so much about the family members of the clients.

Getting to know the family of the client, anything or anyone else is quite important. It is quite easy to conduct a financial plan in a fizz. Most advisors would want to take the shortest route in doing forecasts and completing the plan, gathering assets and sending clients around estate planners, agents of insurance and other required professionals. Others can interact with members of the family through traditional services and eventually get to know members of the client’s family and maybe start a business relationship with them.


As opposed to the usual belief, doing a financial plan is not difficult where one needs to invest time in digging deeply on what is most important for clients. It takes on more time but it’s the foundation for a richer consumer experience transcending the generational gap and the ups and downs of investment decisions and financial markets. For any financial plan, the most important foundation is the mechanical aspect of cash flow planning and also the cost of living. The same case applies in putting up a portfolio that meets the long term needs of the client. Through the process, start by asking questions regarding the family in order to establish what is driving most of the financial decisions. Family not only includes children but also aunts, uncles, close friends and siblings.


Source: ReadyRatios

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