Financial planning software developer RightCapital has released its Snapshot feature, which gives advisors a customizable and highly visual one-page financial plan that can be used as a client landing page or printable PDF, according to the company. The new feature, previewed by WealthManagement.com, is available to the thousands of advisors using the tool and replaces third-party tools like Canva, Excel or other in-house methods used by advisors to create investment plans. a page for customers. .
Personalization is an integral part of functionality. When piloted with about 100 advisers, each adviser made their own one-page plan, said CEO and co-founder Shuang Chen. “We went through a six-month customer discovery phase and quickly realized that everyone’s one-page plan is different,” he said. “We received lots of feedback and created something highly customizable.”
Advisors can add and remove full financial plan widgets, such as net worth, tax statements, and even add messages that can include family information or advisors company values. The one-page plan is also easy to print, in case an advisor wants to create a hard copy for customers to stick on their fridge.
Travis Gatzemeier, financial planner and founder of Kinetix Financial Planning, said the one-page document not only serves as a summary of the financial plan, but can also be used to initiate brief check-ins, instead of full financial planning meetings. His $3.5 million AUM business is based in the Dallas-Fort Worth suburb of Flower Mound, Texas.
Prior to Snapshot’s availability, Gatzemeier used Canva software to create one-page financial plan summaries that he called “Scorecards.” He used a combination of screenshots, texts and video messages recorded through Loom to inform his clients of their financial plans. With Snapshot, part of the manual process of delivering those client updates has been eliminated, he said.
Another benefit of the one-pager is to keep financial planning conversations focused on the topics advisors need to discuss the most, said Jonny West, financial planner at Better Planning Better Life. A partner at LPL Financial, West has approximately $33 million in assets under management at his Long Beach, Calif.-based company.
“We’re inundated with information and what people really like is a succinct summary,” West explained. Snapshot “gives a very succinct summary of where things stand. And I can outline what we want to focus on and the actions we need to take to help them achieve their goals.
Certainly, RightCapital isn’t the only financial planning software developer with one-page financial planning capabilities. Investnet | MoneyGuide offers a “digital plan summary” called “My Snapshot” and eMoney Advisor offers a summary with “retirement plan score, scores for other goals and asset allocation” called “The Plan Summary Report “.
But that does not mean that the features are widely used. Gatzemeier knows eMoney Advisor, but did not know the one-pager offered by this service. West first started using MoneyGuide before switching to RightCapital. He was unaware of the digital resume offered by MoneyGuide.
RightCapital has been growing in popularity since its inception seven years ago. According to a 2021 technology report from Kitces.com, financial planning software “appears to have completely transitioned from a relative newcomer to an established vendor in the financial planning software category,” according to report author Derek Tharp. , senior research associate at Kitces.com.
RightCapital has “substantially outperformed long-standing competitors like Moneytree and NaviPlan” among independent advisors using financial planning software. RightCapital holds 19.7% market share according to the report, compared to 30.3% for MoneyGuide and 33% for eMoney Advisor. “This is primarily due to RightCapital’s significant growth in the broker/dealer channel over the past several years (compared to negligible market share with broker/dealers in our earlier planning software adoption studies), where MoneyGuidePro was historically the market leader.”
As a smaller, less established software company, RightCapital has been forced to innovate to compete, Chen said. “We’re a bit smaller and we’re a lot more flexible than our competition,” he said. “We innovate more than our competitors. This is the only way to gain market share from these big competitors. »