Designed to help advisors easily create dynamic financial plans based on comprehensive, personalized analyses
RADNOR, PA.— March 31, 2021 — eMoney Advisor, a leading provider of technology solutions and services that help people talk about money, today announced the addition of Longevity Risk Analysis and Confidence Age to its Monte Carlo feature set, advancing how Monte Carlo can be used in the financial planning process. Advisors want to help clients minimize the risk of outliving their assets, and these latest enhancements are designed to help advisors easily create dynamic financial plans based on comprehensive, personalized analyses. Built upon eMoney’s sophisticated technology suite, these innovative features are part of the company’s ongoing commitment and holistic approach to providing advisors with a more seamless, interactive and intelligent planning experience that maximizes both client engagement and advisor efficiency.
Longevity Risk Analysis
As life expectancy rates rise and therefore increase the likelihood of one outliving their assets, Longevity Risk Analysis helps ensure that clients are prepared for extended retirement years. This new feature enables advisors to show clients the strength of their financial plans over their entire lifetime and provides a more holistic view of their financial health. Advisors can quickly identify the probability of success of clients being able to fund their cash flows over a broader spectrum of years, presenting a comprehensive picture of how sensitive financial plans are to longevity risk. Actuarial data is embedded in the interactive experience to educate advisors and clients on the often-surprising life expectancy statistics and facilitate critical conversations.
A planning metric that is new to the industry, Confidence Age takes client conversations a step further by demonstrating their financial health in a more humanized and intuitive way, helping to increase engagement. The customizable metric is determined by identifying the age at which the Monte Carlo success rate is projected to drop below the confidence threshold set by the advisor. For example, if the advisor identifies 85+% as the success rate that inspires confidence in the plan, then the Confidence Age is the last age in which the success rate remains at 85% or greater.
“For many clients, the fear of outliving their money is increasingly top-of-mind. We’re reinventing how advisors can use Monte Carlo to offer a comprehensive yet simpler and more intuitive look at the health of a plan over time than the traditional MonteCarlo success rate metric,” said Matt Rogers, CFP®, director of financial planning at eMoney. “The latest Monte Carlo enhancements provide an opportunity for advisors to enhance how they present information and enable new conversations that tell a more robust story and reduce client anxiety and confusion about their financial future.”
eMoney has been investing heavily in its Monte Carlo capabilities over the past year and has since added the ability to infuse Monte Carlo into all interactive cash flow and asset experiences within Decision Center. Longevity Risk Analysis and Confidence Age reflect the next phase of eMoney’s Monte Carlo evolution and are available now as part of eMoney’s advanced planning solutions. Visit eMoney’s Heart of Advice blog to learn more about Longevity Risk Analysis and Confidence Age.
eMoney Advisor provides technology solutions and services that help people talk about money. Rooted in holistic financial planning, eMoney solutions strengthen client relationships, streamline business operations, enhance business development and drive overall growth. More than 70,000 financial professionals across firms of all sizes use the eMoney platform to serve 4 million households throughout the U.S.