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How Financial Planning Has Evolved Over the Years


Throughout my career as a financial advisor, I’ve had the privilege of helping multiple generations of families build meaningful lives and create lasting legacies. Some of these clients have been coming to me for financial guidance since my early days as an advisor, back when Ameriprise Financial was known as Investors Diversified Services (IDS).

After being an independent Ameriprise Financial advisor for most of my career, I joined TruStone Wealth Management in 2016 to be part of a team again. I’ve enjoyed mentoring and learning from other advisors at our company – including my son, Ethan Hodnefield, who is forging his own path in this rewarding profession.

However, the financial planning industry I work in today is quite different than the industry I joined in the ’80s. In this article, I want to provide insight into three of the major ways the financial planning industry has changed from my perspective, and how this progress allows advisors to better serve our clients.

Advanced Technology

In today’s digital world, it’s hard to imagine life before the internet. When I first started my career, however, the main tools advisors used to do business included landline phones and fax machines. Because this was the modern technology of the time, receiving a market update or retirement projection for a client could take 24 hours or longer – and this was considered a fast turnaround compared to decades prior.

Today, these processes happen instantly due to the amazing technology at our disposal. Financial advisors and our clients have access to a variety of online tools through Ameriprise Financial that allow them to communicate with one another, monitor accounts, conduct market research, calculate retirement savings, or adjust financial plans with the click of a button.

Of course, with advanced technology also comes an abundance of information. To ensure we continue to provide regular, relevant, and well-rounded financial advice in the digital age, TruStone Wealth Management holds our team of advisors to a high standard of knowledge. Our leadership actively encourages our team to pursue professional development opportunities that deepen our expertise in different areas of financial planning, as shown by the list of designations behind our advisors’ names on our website.

We are always researching, learning, and exploring new ways to further enhance the quality of our financial advice and differentiate ourselves from our competitors. Modern technology plays a major role in making this possible.

Accessibility

Another improvement in our industry is increased access to financial planning. Whether people are just starting their careers or counting down to their retirement, it’s easier than ever to contact a financial advisor and discuss strategies that help them feel more confident about their futures.

In the past, financial planning could be perceived as a service reserved for the wealthy. Due to ongoing efforts by advisors to dispel this myth over the past few decades, however, people from all income levels are starting to understand that financial planning is a strategic process that empowers people to live more comfortable and fulfilling lives, no matter their age or income.

Diversified Strategies

One last major change I’ve observed in my many years as a financial advisor is diversification of financial planning strategies. While many people still associate our work solely with investments and retirement savings, over time they’ve become more aware of our other services that can be incorporated into their financial plans, including charitable giving, estate planning strategies, family finances, educational savings, and wealth preservation strategies.

These services allow our advisors to give a holistic picture of a client’s financial plan that covers the essentials, supports their lifestyle, prepares for the unexpected, and establishes a legacy that will last for generations to come. Because everyone’s circumstances are different, our advisors take time to understand every client’s situation so they can create financial plans that are truly unique to every individual or family.

After working in this industry for so long, I could probably write a novel about what I’ve observed. These are the three major shifts in the financial planning industry that stood out to me when reflecting about my career.

Despite all this progress, however, there is one thing that has not changed: our commitment to helping people from all walks of life reach their goals. To learn how we can work together to build the life you deserve, schedule an appointment with an advisor at TruStone Wealth Management today.

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Read more articles by Roger Hodnefield