Portfolio Visualizer Tool Options for Financial Advisors

When a client is ready to make a change to their investment strategy, they may be interested in seeing how those choices might play out over the long term. Portfolio visualizer tools make it possible to generate models or simulations so they can evaluate the potential outcomes. The best tools are easy to incorporate as an advisor, and easy for clients to understand.

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What Is a Portfolio Visualizer?

Portfolio visualizers are tools that allow advisors to analyze and compare investments in a granular way for their clients. They may be stand-alone tools that you can use independently of software programs. Or they may be incorporated into financial planning software options or applications that are tailored to advisors’ needs.

So, what can these types of tools do for you? The capabilities of a portfolio visualizer may extend to:

• Comparing tactical allocation models
• Fund screening and analysis
• Back-testing
• Modeling for portfolio optimization
• Running Monte Carlo simulations

These types of features are designed to help you provide the most accurate advice to clients. They also allow clients to visualize what their portfolio looks like now and what it might look like should they decide to do X, Y or Z with their investments or if they experience major life changes.

That can be invaluable for clients who are visual learners and absorb information more readily by seeing it, rather than just hearing it. Presenting a client with charts, graphs or other visual aids can underscore the advice you’re offering so that it’s easier for them to process.

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Portfolio Visualizer Tools for Advisors

Choosing tools to incorporate into your business often comes down to the type of features you’re interested in, the level of functionality you need and the cost you’re comfortable paying. When comparing visualizer tools, it’s helpful to ask yourself the following:

• What do I need this tool to be able to do for me (and my clients)?
• Which features are most important to have?
• What price point am I willing to pay in exchange for the range of features or benefits offered?

With that in mind, here are six portfolio visualizer options for advisors to consider:

1. Morningstar Office

Morningstar Office is an all-in-one practice and portfolio management software program designed for registered investment advisors (RIAs). Its features include:

• Portfolio modeling and reporting
• Portfolio analysis
• Investment planning
• Risk modeling and risk profiling
• Customer relationship management (CRM) tools
• Portfolio rebalancing

Advisors have access to Morningstar data, research and analysis, all of which can be used to generate model portfolios for clients. If you’d like to take the program for a test run, you can contact Morningstar to request a demo.

2. NaviPlan

NaviPlan is a financial planning software solution that’s used by banks, insurance providers and broker-dealers. It’s designed to be an end-to-end solution for advisors, spanning everything from new client onboarding to compliance and data security.

The software’s unique features allow advisors to deliver financial advice to clients collaboratively and visually. For example, the Guided Retirement tool makes it easy for clients to see whether they’re on track to retire and how their plans may be impacted by changing healthcare costs.

NaviPlan is also equipped to allow for Monte Carlo analysis, scenario analysis and retirement income modeling. Advisors can create custom reports using charts, graphs and other visual components that are tailored to their clients’ needs. A trial is available if you’d like to try the software before committing.

3. Nitrogen

Nitrogen is designed to be a growth platform for wealth management firms and advisors who prefer an all-in-one solution. Advisors who use Nitrogen have access to a number of interactive and visualizer tools to assist with:

• Modeling risk capacity so that clients understand how much risk they need to take to reach their goals
• Helping clients understand the impacts of various life changes or financial decisions, from paying for college to deciding when to take Social Security benefits
• Running stress tests and model different investment scenarios to gauge outcomes

Nitrogen runs daily analysis for over a quarter million securities, including stocks, exchange-traded funds, mutual funds, bonds and real estate investment trusts. Advisors can tap into the available data to model performance and analyze risk at a detailed level.

4. FundVisualizer

FundVisualizer allows advisors to compare ETFs, mutual funds and indexes either head-to-head or within portfolios. This stand-alone visualizer tool is powered by Morningstar data so you can compare investments across 80 performance and risk metrics.

Here are some of the tool’s features:

• Portfolio modeling and analysis
• Interactive charts
• Report creation

FundVisualizer allows you to easily share your findings with clients via email and it’s free for advisors to use. You’ll need to be able to download the tool from the App Store and register an account to start using it.

5. Portfolio Visualizer

Portfolio Visualizer is another stand-alone option for advisors who want to be able to generate visual models and reports for clients. The Pro subscription plan, which is designed for both personal and commercial use, includes the following:

• Portfolio backtesting
• Monte Carlo simulations
• Portfolio optimization
• Factor regression
• Asset analytics
• Tactical allocation models

You can view examples of portfolio visualizations on the site or sign up for a demo to test out the tool yourself to decide if it’s right for you.

6. eMoney Advisor

eMoney Advisor is a comprehensive financial planning software that aims to equip advisors with everything they need to manage client portfolios. That includes access to interactive and visual tools.

For example, the Decision Center allows to you analyze investments and their lifetime impact on client portfolios. You can also run a Money Carlo analysis and create personalized plan summaries for clients.

There are four plan options available: eMoney Plus, eMoney Pro, eMoney Premier and eMoney Enterprise. All of them include onboarding training and support to make the transition to eMoney as easy as possible.

5 Ways to Integrate Portfolio Visualizer Tools into Your Business

Integrating portfolio visualizer tools into your financial advisory business can enhance your services and improve client satisfaction. Here five general areas whee you can incorporate these tools:

1. Client onboarding: Introduce new clients to portfolio visualizer tools during the onboarding process. Use these tools to demonstrate how you tailor investment strategies to individual needs and risk tolerances. This early introduction sets clear expectations about how you manage investments and helps clients feel more connected to the decision-making process.
2. Regular reviews: Make visualizers a standard part of your periodic review meetings. They can be used to show clients the current performance of their portfolios and explore potential adjustments. For example, you could use a visualizer to demonstrate the impact of increasing equity exposure or diversifying into new asset classes. This not only educates clients but could also foster a deeper engagement with their investment strategy.
3. Scenario analysis: Use visualizer tools to conduct scenario analysis during times of market volatility or major life events for clients, such as retirement or buying a home. Showing visual projections of different scenarios can help clients make more informed decisions about how to adjust their portfolios in response to changing circumstances.
4. Educational workshops: Host client workshops where you demonstrate the use of these tools. This can be an excellent way to show clients the value of thoughtful portfolio construction and the benefits of ongoing management. It can also be an effective marketing tool, showcasing your technological edge and commitment to transparency.
5. Marketing material: Use outputs from portfolio visualizers in your marketing materials. For example, include case studies or hypothetical portfolio outcomes in your newsletters, on your website, or in client presentations. This not only highlights your analytical capabilities but could also help potential clients understand the type of analysis they can expect.

Bottom Line

Portfolio visualizer tools can make your job as an advisor easier if you’re able to demonstrate to clients what they might be able to expect when choosing one investment versus another. Understanding which features are most likely to resonate with your clients can help you decide which tool or tools are a good fit for your business.

Tips for Growing Your Advisory Business

• As you spend more time improving the portfolios of your clients, the less time you may have for marketing on your own. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
• Software tools can help you save time, allowing you to run your advisory business more efficiently. In addition to comparing visualizer tools, you might also consider whether your current financial planning, wealth management or estate planning software is working for you. Researching different options to compare features, benefits and costs can help you evaluate if what you’re using now is still meeting your needs and those of your clients.

Photo credit: ©iStock/Kerkez, ©iStock/Morningstar Office, ©iStock/NaviPlan, ©iStock/Nitrogen, ©iStock/FundVisualizer, ©iStock/Portfolio Visualizer, ©iStock/eMoney Advisor, ©iStock/Jacob Wackerhausen