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Financial advisors today do more than just manage investments — they help clients make smarter decisions that align with their long-term goals. In this video, we break down the difference between cash flow-based and goals-based financial planning, and why finding the right advisor for your style can make a big difference in your financial future.
00:10 Modern role of financial advisers in client success
00:40 Introduction to two main types of financial planning
00:50 Understanding the cash flow-based planning approach
01:17 Overview of goals-based financial planning
01:34 Personal introduction as goals-based planner
#FinancialPlanning, #GoalsBasedPlanning, #FinancialAdvisor, #WealthManagement, #FinancialWellness, #RetirementPlanning, #FinancialFreedom
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1. Value of advice sources: Envestnet, Capital Sigma: The Return on Advice (estimates advisor value add at an average of 3% per year), 2016; Russell Investments, Envestnet, Capital Sigma, The Advisor Advantage (PDF) (estimates advisor value add at an average of 3% per year), 2019; 2017 Value of a Financial Advisor UpdateOpens in a new window estimates value add at more than 4% per year); Vanguard, Putting a Value on Your Value: Quantifying Vanguard Advisor's AlphaOpens in a new window® 2016, (estimates lifetime value add at an average of 3%); Morningstar Investment Management, The Value of a Gamma-Efficient PortfolioOpens in a new window, 2017, (estimates value add for a subset of the service identified in this paper at an average of 1.5% per year). The methodologies for these studies vary greatly. In the Envestnet and Russell studies, the paper sought to identify the absolute value of a set of services, while the Vanguard and Morningstar studies compared expected impact of advisor practices to a hypothetical base case scenario. Please follow the links above to see important differences in the methodologies of these various studies.