Market Volatility Increases Demand for Financial Planning: Cerulli

“A thoughtful stream of touchpoints can buoy client satisfaction even as markets falter, allowing advisors to be best positioned for client retention and growth,” Scott Smith, director of advice relationships at Cerulli Associates, said in a statement.

Scale becomes an important consideration as firms continue to encourage financial planning.

“Well-integrated financial planning solutions can help advisors meet investor demand for bespoke planning services efficiently, which can prove invaluable, especially in times of market volatility,” Smith said.

Cerulli research showed that 74% of advisors use financial planning software within their practice, and by 2023, this number is expected to reach 82% among firms polled.

Ultimately, according to the study, advisors who offer financial planning find that their clients are better positioned to stay the course and remain calm when market performance declines. This, in turn, enables advisors to develop enduring client relationships.

“Financial planning shifts the focus to progress made toward achieving goals rather than investment performance,” Smith said. “This frames volatility in the context of a bigger picture, which helps clients feel prepared when market shocks arise.”