Industry publication Wealth Management just featured R Persichitte’s views on how technology will shape the financial planning industry in the next 25 years.
The article emphasizes our belief that the purpose of technology is to improve outcomes and relationships. Right now, financial plans take a considerable amount of brainstorming paired with trial and error. The planner has an idea, then models it to see if it’s the best outcome.
Mr. Persichitte says, “Right now, it’s almost embarrassing how many ideas you have to throw at the wall to make a good plan. When I’m going through a plan, I think something might work, but long-term models show that it doesn’t improve outcomes. Clients don’t realize that for one recommendation, I might try up to 20 different plans of attack then choose the best one.”
In the future, the software may be able to take out the guesswork by iterating over different combinations of strategies.
The core of the planning process will remain to communicate completed financial plans. The best strategy in the world is useless if it doesn’t get implemented. Clients should work with a financial advisor who will explain what is happening and how to achieve their goals.