Wednesday, January 27 at 2:00 p.m. ET In part 1 of a 3 part series you'll see how financial planning and marketing work together to grow your business, engage clients, and maintain strong relationships.

Welcome to
Heart of Advice

a new source of expert insights for
financial professionals.

Get Started

Tips specific to the eMoney platform can be found in
the eMoney
application, under Help, eMoney Advisor Blog.

eMoney Logo
Magnifying Glass Icon
Mobile Menu Icon Close Mobile Menu Icon
Arrow Icon

Heart of Advice

Insights and best practices for successful financial planning engagement
Learn more

Back to All Articles

Explore Our Categories

eBook - Power to the Plan: The (R)evolution of Financial Advice

READ NOW

3 Ways Monte Carlo Projections Help Client Relationships

eMoney Communications Team June 8, 2016

monte carlo builds relationships

As an advisor, you’re asked to do a lot for your clients. You create plans to meet their goals. Map out their retirement. Talk them through tough markets and contain them during good ones. Sometimes you’re even asked to predict the future. Answering such questions as, “when can I retire?” or “will I be able to afford my child’s education?”

How you resolve these questions is up to you, but for many advisors, one of the most popular tools for answering their clients’ tough questions is the Monte Carlo simulator.

Although the underlying math is complex, the theory behind Monte Carlo is simple. Since no one can predict the future, Monte Carlo runs thousands of separate projections that each work to model as many known variables as possible – providing clients with a statistically significant range of success versus failure as a result. And thanks to the wonders of modern technology, these projections can now be run in seconds and applied to almost any plan or portfolio.

As software continues to expand the uses of Monte Carlo projections, it works to help improve client relationships in several ways.

1. Monte Carlo builds on your existing work

Clients come to you with financial goals and it’s your job to provide the advice that will help meet them. In other words, you tie their goals to a plan. Monte Carlo builds off this process by then tying those plans to a level of success, or failure, depending on the client’s situation. In doing so, Monte Carlo makes it much easier to discuss any changes or new products that may be needed to improve the likelihood of success for their plan.

2. You can model different plans easily

Sometimes, all it takes to find the right path is to see all the wrong ones first. Luckily, Monte Carlo gives you a glimpse into all those wrong paths, without suffering any of the would-be consequences. Want to add an annuity to the plan? The client now has 5% better chance for success. How about investing more heavily in stocks? No matter which approach you show clients, Monte Carlo gives you the tools to create an engaged conversation about its merits.

3. You calm your clients’ fears

The market goes down and inbound calls go up. Sound familiar? Using Monte Carlo you can weather this storm easily. With the ability to run quick Monte Carlo projections that push a client’s mind past the current down market and into the quantifiable future, you keep them focused on the long term plan, rather than short term losses.


Want to start incorporating Monte Carlo into your client meetings today? Watch our on-demand webinar.






Register Here



Hosted by our Senior Financial Planning Analyst, this interactive session will explore how Monte Carlo works and show how when pairing it with technology, you can deliver a better client experience.

 

About the Author

The eMoney Communications team is dedicated to helping users find the most efficient and impactful ways to plan for their clients, while striving to make basic and advanced financial planning accessible for all.

You may also be interested in...

Upcoming Webinar: Maximize Your Client’s Lifecycle Journey in 2021

In part 1 of a 3-part series, you’ll see how financial planning and marketing work together to grow your business,… Read More

virtual onboarding of planning clients

The Importance of Data Aggregation Tools in a Virtual Work Environment

The pandemic has propelled us into a virtual-first world, accelerating the need for firms to move to fully digitized operations. Read More

excellent client service

The Elements of Exceptional Client Service

Research from Cerulli shows client satisfaction is higher than ever—80 percent of investors are satisfied with their current advisor, while… Read More

Webinar - Financial Planning During the COVID-19 Economy - 1 CFP® CE Credit

Join us as we discuss how clients can maximize their use of savings and investment vehicles to meet their financial goals in the COVID-19 economy. Thursday, February 4th, 2021 from 2:00 p.m. ET

REGISTER NOW
Webinar - Financial Planning During the COVID-19 Economy - 1 CFP® CE Credit

Join us as we discuss how clients can maximize their use of savings and investment vehicles to meet their financial goals in the COVID-19 economy. Thursday, February 4th, 2021 from 2:00 p.m. ET

REGISTER NOW

Sign up to have the most popular Heart of Advice posts delivered to your inbox monthly.

Sign up to have the most popular Heart of Advice posts delivered to your inbox monthly.

Heart of Advice by eMoney Advisors

Welcome to
Heart of Advice

a new source of expert insights for
financial professionals.

Get Started

Tips specific to the eMoney platform can be found in
the eMoney
application, under Help, eMoney Advisor Blog.