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Have you ever wondered how Planswell creates those comprehensive financial plans for households? Let’s break down the process and see how Planswell uses technology and strategic questioning to craft personalized financial plans.
Step 1: Gathering Information
Planswell starts by asking each household 30 to 40 questions. These questions cover a broad range of topics to determine the household’s lifestyle. The information gathered includes details like age, health, location, income, marital and family status, and desired retirement age. This step is crucial because it sets the foundation for the entire planning process.
Step 2: Inputting Data
Once the information is collected, it’s input into a comprehensive algorithm. This algorithm performs millions of calculations in the background. The accuracy of the final plan largely depends on how precise the initial data entries are, so it’s essential for households to provide accurate and honest responses.
Step 3: Running the Algorithm
The algorithm takes into consideration various factors such as:
- Age
- Health
- Location
- Income
- Marital and family status
- Desired retirement age
By processing this data, the algorithm forecasts an outcome based on high-level recommendations. These recommendations focus on a holistic model of cash flow efficiency, investment strategies, and risk management.
Step 4: Generating Recommendations
The suggestions produced by the algorithm are product-agnostic. This means the recommendations are not tied to specific financial products, leaving room for you, the financial advisor, to determine the best products and strategies once you have a complete understanding of the household’s situation.
Step 5: Verifying and Personalizing
Planswell organizes the gathered information and provides a structured overview. However, the real magic happens when you make contact with the household. This is your opportunity to verify the accuracy of the information and delve deeper into the person’s situation. As an advisor, you can then tailor the recommendations to better fit the household’s unique needs and goals.
Wrapping Up
Planswell’s process of creating financial plans is a blend of strategic questioning, advanced algorithms, and personalized advisor insights. By starting with detailed information gathering and leveraging technology for analysis, Planswell provides a robust foundation. But it’s your expertise that ultimately brings the plan to life, ensuring each household receives advice tailored to their specific circumstances.
So, the next time you work with a Planswell household, you’ll know exactly how their financial plan was created and how you can add your personal touch to make it even more effective. Happy planning!
