How Q Wealth changes the game for advisor-client engagement

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“One of the biggest flaws in traditional financial planning is 2-dimensional software that forces advisors to use fixed rates for inflation (say 2%), and market returns (6 or 7%), for example. Of course, neither of those things happen in any given year, and sequence of returns can really screw up financial planning calculations. That’s why we use a Monte Carlo engine that does 1,000 simulations every time we change a variable. It’s all probability based. From there, we provide the tools to instantly model all the scenarios and what-ifs a client can imagine.”

Another major challenge for planners and clients is to get a handle on what a client’s life actually costs them. “Without an accurate and ongoing understanding of spend, any cash flow scenario is going to go wildly off course.”

Q Wealth solves this by feeding the planning apps with live account aggregation data leveraging the latest FDX and OFX open banking standards for maximum security. “It’s impossible to overstate how much time this saves advisors, and clients, but also what this means for the ongoing value advisors can add. With plans that are constantly updating themselves based on how the client lives and spends, and accounting for fluctuating investment values, it’s like going from a hand-written map on paper to Google maps with GPS and real-time traffic data.”

Most wealth management client portals simply look at investments – holdings, transactions, and performance. Q Wealth’s next-gen client portal positions the client’s Q Score at the centrepiece. “We want clients to focus on – ‘Am I living the life I want to live, and what is my advisor currently doing on my behalf to ensure this continues’ – rather than how their portfolio performed vs the TSX year-to-date. That probably doesn’t matter much to their long-term Q Score.”

Within the Q-Connect portal, clients can interact with their plan – to add simulations when they wake up in the middle of the night and wonder “what if”. The system makes the updates and notifies the advisor who can then engage with the client and help bring them back to a place of clarity and comfort. “The account aggregation also means when a client logs into their portal, they are looking at their net-worth and spending patterns, updated daily. They see the whole picture – including held-away assets.” Rabinowitz added.