Envestnet Enhances MoneyGuide Platform to Drive the Future of Digital Financial Planning

Rhea-AI Summary

On March 13, 2023, Envestnet announced the latest enhancements to its MoneyGuide platform, aimed at improving financial planning for advisors and clients. The generational release responds to the impending transfer of $68 trillion in wealth from Baby Boomers, as nearly 50% are not organizing their finances. Key updates include a new Goals-Based Planning experience, advanced earmarking with Monte Carlo simulations, an updated Employer Awards section, and a new Entity section for trusts and businesses. These improvements are designed to provide actionable insights and enhance client engagement amid ongoing market volatility.

Positive

• Launch of Goals-Based Planning digital experience to enhance advisor-client interactions.
• Advanced earmarking features for improved wealth management strategies.
• Updates to Employer Awards streamline vesting schedules and exercise strategies.
• Introduction of new Entity section for comprehensive financial planning.
• State-specific adjustments for healthcare goal costs tailored to client circumstances.

Negative

• None.

New Envestnet | MoneyGuide Generational Release Creates Even More Personalized & Seamless Financial Planning Experiences, at a Time When They're Needed Most

BERWYN, Pa., March 13, 2023 /PRNewswire/ -- It's estimated that Baby Boomers will transfer $68 trillion in wealth over the next 25 years—the size and scope of which will have implications for the U.S. economy and the financial well-being of future generations. At the same time, Envestnet's generational research shows that a surprising 50% of Baby Boomers are not formally organizing their long-term finances.

Is this generation prepared to plan for and manage this colossal transfer of wealth? As these data points collide, financial planning considerations have become front and center in many of today's advisor/client conversations.

To facilitate a more seamless experience for advisors whose practices incorporate financial planning, Envestnet announces the rollout of its latest Envestnet | MoneyGuide generational technology release. Featuring updates across its financial planning platform, the release supports forward-thinking advisors who are seeking to deliver personalized and relevant planning experiences.

"There has arguably never been a more important time for an emphasis on financial planning, and we consistently update our offering to set the pace of planning technology. Our goal is to make it easier for advisors to develop deeper client relationships and expand their services to all clients and prospects—regardless of their wealth, stage in life, or complexity of their finances—through digital financial planning experiences," said Rose Palazzo, Group President, Envestnet Financial Planning. "This generational technology release delivers enhancements across our platform that support core functionality and also lay a foundation for continuous financial planning enhancements to the platform."

The release includes the rollout of a Goals-Based Planning digital experience, which can align investment strategies with specific goals and streamline their implementation.

"These ongoing updates to our comprehensive financial planning suite give advisors quality data and actionable insights into their clients' financial lives," said Kevin Hughes, Chief Growth Officer of Envestnet | MoneyGuide. "In the wake of recent market volatility, advisors can utilize the Envestnet | MoneyGuide platform's capabilities to digitally re-engage clients around planning, as well as work with new clients and prospects—including next-generation recipients of wealth transfers—on sticking to a defined plan over time that can give them both confidence and peace of mind."  

Additional highlights from Envestnet | MoneyGuide's latest generational release include:

• Advanced Earmarking with Monte Carlo: This enhancement enables the Probability of Success calculation to consider investment asset, retirement income, and other resource earmarking assignments. Accordingly, Envestnet | MoneyGuide's goal funding logic has also been updated, so that when a goal is funded, resources assigned to the goal expense, assigned to all goals, and assigned to other goals will apply. These earmarking advancements will also apply to deterministic results (Average Return, Bad Timing) and iterative results (Probability of Success).
• Employer Awards: This new section has replaced Stock Options and Restricted Stock, and offers new features such as:
• Ability to specify the number of shares per vesting period.
• Annual, semi-annual, quarterly, and monthly vesting options.
• Automatically populated vesting schedules based on vesting frequency.
• Simplification of Exercise Strategies to At Vesting, At Expiration, and Custom.
• Appearance of vested amounts of awards within Net Worth.
• New Entity Section: This section will enable advisors and their clients to add information about trusts, charities, and businesses in plans.
• Goals: State-specific Health Care goal costs can be adjusted in the year a client moves during retirement, instead of using the new state's costs for the entire plan. Also, types of Celebration goals can be entered as recurring goals.
• Goal Strategies: Qualified Charitable Distribution (QCD) limits can inflate at the scenario's base inflation rate starting in 2024, instead of using a static $100,000 limit for the entire plan.

Envestnet will be presenting at this year's T3 Advisor Conference, taking place March 13-16, 2023 at the JW Marriott Tampa Water Street in Tampa, FL. Visit Booths 600 and 602 during the conference to learn more about the latest Envestnet | MoneyGuide release.

About Envestnet
Envestnet is transforming the way financial advice is delivered through an ecosystem of technology, solutions, and intelligence. By establishing the connections between people's daily financial decisions and long-term financial goals, Envestnet empowers them to make better sense of their finances and live an Intelligent Financial Life™. With $5 trillion in platform assets, approximately 106,000 advisors, 16 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, more than 500 of the largest RIAs, and thousands of companies depend on Envestnet technology and services to help drive better outcomes for their businesses and for their clients.

Envestnet refers to the family of operating subsidiaries of the public holding company, Envestnet, Inc. (NYSE: ENV). For more information on Envestnet, please visit www.envestnet.com and follow us on Twitter (@ENVintel).

For more information about Envestnet | MoneyGuide, please visit https://www.moneyguidepro.com/ifa/.

 

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SOURCE Envestnet