When a client is ready to make a change to their investment strategy, they may be interested in seeing how those choices might play out over the long term. Portfolio visualizer tools make it possible to generate models or simulations so they can evaluate the potential outcomes. The best tools are easy to incorporate as an advisor, and easy for clients to understand.
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What Is a Portfolio Visualizer?
Portfolio visualizers are tools that allow advisors to analyze and compare investments in a granular way for their clients. They may be stand-alone tools that you can use independently of software programs. Or they may be incorporated into financial planning software options or applications that are tailored to advisors’ needs.
So, what can these types of tools do for you? The capabilities of a portfolio visualizer may extend to:
Comparing tactical allocation models
Fund screening and analysis
Modeling for portfolio optimization
Running Monte Carlo simulations
These types of features are designed to help you provide the most accurate advice to clients. They also allow clients to visualize what their portfolio looks like now and what it might look like should they decide to do X, Y or Z with their investments or if they experience major life changes.
That can be invaluable for clients who are visual learners and absorb information more readily by seeing it, rather than just hearing it. Presenting a client with charts, graphs or other visual aids can underscore the advice you’re offering so that it’s easier for them to process.
Portfolio Visualizer Tools for Advisors
Choosing tools to incorporate into your business often comes down to the type of features you’re interested in, the level of functionality you need and the cost you’re comfortable paying. When comparing visualizer tools, it’s helpful to ask yourself the following:
What do I need this tool to be able to do for me (and my clients)?
Which features are most important to have?
What price point am I willing to pay in exchange for the range of features or benefits offered?
With that in mind, here are six portfolio visualizer options for advisors to consider:
Morningstar Office is an all-in-one practice and portfolio management software program designed for registered investment advisors (RIAs). Its features include:
Portfolio modeling and reporting
Risk modeling and risk profiling
Customer relationship management (CRM) tools
Advisors have access to Morningstar data, research and analysis, all of which can be used to generate model portfolios for clients. If you’d like to take the program for a test run, you can contact Morningstar to request a demo.
NaviPlan is a financial planning software solution that’s used by banks, insurance providers and broker-dealers. It’s designed to be an end-to-end solution for advisors, spanning everything from new client onboarding to compliance and data security.
The software’s unique features allow advisors to deliver financial advice to clients collaboratively and visually. For example, the Guided Retirement tool makes it easy for clients to see whether they’re on track to retire and how their plans may be impacted by changing healthcare costs.
NaviPlan is also equipped to allow for Monte Carlo analysis, scenario analysis and retirement income modeling. Advisors can create custom reports using charts, graphs and other visual components that are tailored to their clients’ needs. A trial is available if you’d like to try the software before committing.
Nitrogen is designed to be a growth platform for wealth management firms and advisors who prefer an all-in-one solution. Advisors who use Nitrogen have access to a number of interactive and visualizer tools to assist with:
Modeling risk capacity so that clients understand how much risk they need to take to reach their goals
Helping clients understand the impacts of various life changes or financial decisions, from paying for college to deciding when to take Social Security benefits
Running stress tests and model different investment scenarios to gauge outcomes
Nitrogen runs daily analysis for over a quarter million securities, including stocks, exchange-traded funds, mutual funds, bonds and real estate investment trusts. Advisors can tap into the available data to model performance and analyze risk at a detailed level.
FundVisualizer allows advisors to compare ETFs, mutual funds and indexes either head-to-head or within portfolios. This stand-alone visualizer tool is powered by Morningstar data so you can compare investments across 80 performance and risk metrics.
Here are some of the tool’s features:
FundVisualizer allows you to easily share your findings with clients via email and it’s free for advisors to use. You’ll need to be able to download the tool from the App Store and register an account to start using it.
Portfolio Visualizer is another stand-alone option for advisors who want to be able to generate visual models and reports for clients. The Pro subscription plan, which is designed for both personal and commercial use, includes the following:
You can view examples of portfolio visualizations on the site or sign up for a demo to test out the tool yourself to decide if it’s right for you.
eMoney Advisor is a comprehensive financial planning software that aims to equip advisors with everything they need to manage client portfolios. That includes access to interactive and visual tools.
For example, the Decision Center allows to you analyze investments and their lifetime impact on client portfolios. You can also run a Money Carlo analysis and create personalized plan summaries for clients.
There are four plan options available: eMoney Plus, eMoney Pro, eMoney Premier and eMoney Enterprise. All of them include onboarding training and support to make the transition to eMoney as easy as possible.
Portfolio visualizer tools can make your job as an advisor easier if you’re able to demonstrate to clients what they might be able to expect when choosing one investment versus another. Understanding which features are most likely to resonate with your clients can help you decide which tool or tools are a good fit for your business.
Tips for Growing Your Advisory Business
Investors are increasingly turning to online searches to connect with financial professionals. Having a website and being active on social media can make it easier to get noticed, but if you’re interested in producing faster results, you might consider adding an online lead generation tool into the mix. With SmartAdvisor, for instance, you can get connected with leads without having to spend hours of your busy day cold calling or emailing.
Software tools can help you save time, allowing you to run your advisory business more efficiently. In addition to comparing visualizer tools, you might also consider whether your current financial planning, wealth management or estate planning software is working for you. Researching different options to compare features, benefits and costs can help you evaluate if what you’re using now is still meeting your needs and those of your clients.
Photo credit: ©iStock/Kerkez, ©iStock/Morningstar Office, ©iStock/NaviPlan, ©iStock/Nitrogen, ©iStock/FundVisualizer, ©iStock/Portfolio Visualizer, ©iStock/eMoney Advisor, ©iStock/Jacob Wackerhausen
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