How simpler financial planning technology can help advisors increase revenue, reduce overhead, and strengthen client relationships.
Financial planning software has become increasingly complicated. Many platforms offer sophisticated calculations, automated data feeds, and extensive features. But all that complexity comes at a cost: time spent learning, maintaining, and managing software instead of serving clients.
I recently spoke with representatives of a wealth management firm overseeing tens of billions of dollars. They shared that they felt their employees were spending too much time having to learn their financial planning software. Even large firms with substantial resources struggle with software complexity.
At El Camino Financial (ECF), we believe technology should make financial planning easier, not create more work.
More Time to Serve More People
When I completed my Personal Financial Planning Certificate at UC Berkeley Extension, I learned that effective financial planning starts with understanding a client’s financial position, goals, and retirement needs. That is why ECF focuses on the fundamentals, helping advisors answer essential financial planning questions for their clients:
- What are your goals?
- Can you handle a financial disruption or do you have enough emergency savings?
- Can you meet short-term obligations?
- Are you managing debt effectively?
- Are you saving enough?
- Is your net worth positive and trending in the right direction?
- Are you on track for retirement?
- Are your investments generating a satisfactory return?
These are questions that matter to clients and create opportunities for meaningful financial planning conversations. By simplifying the planning process, advisors can spend less time navigating software and more time serving existing clients or taking on new ones. The objective isn’t necessarily to spend less time with each client. It’s to spend less time managing the technology behind the relationship.
Client Engagement Creates Revenue Opportunities
Unlike platforms that depend heavily on automated account aggregation, ECF encourages advisors to gather and review financial information directly with their clients. Collecting updated information creates valuable opportunities for communication. Instead of relying exclusively on automated feeds, advisors can engage clients in conversations about changing financial circumstances, priorities, and goals.
Consider a quarterly financial planning engagement:
- 1 hour: Meeting with the client to review their financial situation.
- 1 hour: Gathering and reviewing updated financial information.
- 1 hour: Updating the financial snapshot and preparing a report.
That’s approximately three hours of planning work per quarter, creating multiple client touchpoints and opportunities to demonstrate value.
Kitces Research has examined hourly financial planning fees, providing a useful benchmark for advisors evaluating this business model. Using an illustrative rate of $300 per hour, an advisor billing three hours per quarter could generate $900 per client quarterly, or $3,600 annually.
| Clients | Potential annual planning revenue |
|---|---|
| 25 | $90,000 |
| 50 | $180,000 |
| 100 | $360,000 |
| 150 | $540,000 |
These hypothetical figures assume four quarterly engagements per client, with all three hours billable at $300 per hour. Actual revenue will vary depending on pricing, client demand, and nonbillable activities.
For advisors charging based on assets under management, the same process can help demonstrate the ongoing value of their advisory fees.
Related research: Kitces — Growth and Scaling Challenges for Flat-Fee Financial Advisors
Grow Your Practice Without Growing Your Overhead
Complicated financial planning platforms can require additional training, administrative support, or dedicated associates to maintain client information and prepare reports.
ECF’s straightforward approach allows advisors to manage financial planning themselves, potentially reducing the need to hire additional staff simply to operate the software.
Consider an advisor who increases the number of clients served by 10% annually. Over five years, that represents approximately 60% growth in the client base.
With efficient technology, advisors may be able to accommodate that growth without increasing staffing expenses at the same rate.
The opportunity is to grow revenue faster than overhead, improving operating margins while maintaining personalized client relationships.
Financial Planning That Makes Business Sense
At $99 per month, ECF provides advisors with an affordable financial planning platform designed around efficiency, client engagement, and the fundamentals of financial planning.
We believe financial planning technology should help advisors build stronger businesses, not become another operational burden.
ECF can help you serve more people, strengthen relationships, and grow a profitable advisory practice.
Learn more at El Camino Financial.