In my previous career as a financial advisor, I often found myself in a delicate balancing act. On the one hand, we strive to build deep relationships with our clients, understanding their unique needs, goals, and aspirations. On the other hand, practical constraints of time and resources can limit the depth of our interactions. Annual or semiannual meetings provide valuable touchpoints, but what happens between meetings? How can we ensure that our clients stay on track and implement the financial plans we painstakingly create?
Enter the Daily Money Manager (DMM). A relatively new player in the financial services arena, the DMM serves as a bridge between the advisor and the client, offering a range of services that complement and enhance the advisor-client relationship.
Partnering with a DMM
1. Financial Plan Implementation Support
Financial plans are only as effective as their execution. Unfortunately, many clients struggle to take the necessary steps to fully implement the given advice. This is where the DMM comes in. Annual or semiannual meetings are essential, but life doesn’t pause in between. The DMM bridges these gaps: reviewing financial plans, answering questions, and helping clients stay on track. Whether it’s updating beneficiary designations or ensuring that insurance coverage remains intact, the DMM keeps the momentum going.
Imagine having a professional who not only helps your clients organize and track their financial lives but also helps them follow through on the recommendations you’ve made between meetings. A DMM is equipped to enhance the services financial advisors provide, creating a powerful client team.
2. Account Titling and Estate Planning
Proper account titling is essential for estate planning. The DMM will review your estate plan and assets, ensuring that accounts are titled correctly and align with the client’s estate plan. This seemingly mundane task can have significant implications for the client’s legacy. By collaborating with the DMM, advisors can rest assured that the details are meticulously handled.
3. Real Spending Insights
Advisors often rely on assumptions about client spending when creating financial models. But assumptions can be risky and often are low. The DMM provides real-time spending data—actual numbers, not estimates. Armed with this information, advisors can fine-tune their projections, adjust withdrawal rates, and make more informed decisions. It’s a clear window into a client’s financial behavior.
4. Conflict Avoidance
As financial professionals, we recognize the importance of delineating responsibilities. The separation of duties among the DMM, CPA, financial advisor, and attorney isn’t just about efficiency—it safeguards the integrity of the advisory process. The DMM relieves you of time pressures and distractions. Whether it’s bill payments, budgeting, or managing daily finances, they handle the operational details. This allows the advisor to concentrate on strategic planning, portfolio management, and aligning the client’s financial path with their aspirations.
5. Tax Document Organization
Tax season can be chaotic. The DMM assists clients in organizing their tax documents, making the process smoother for both the client and their CPA. Imagine the relief when Tax Day nears, and everything is neatly categorized and ready for review.
6. Timely Bill Payments
Missed bill payments can lead to financial stress, and late or missing payments can jeopardize insurance coverage or negatively impact credit. The DMM ensures that bills are paid promptly, preventing unnecessary disruptions. Advisors can focus on strategic planning, knowing that their clients’ day-to-day financial tasks are handled.
Conclusion
In the evolving landscape of financial advice, the DMM emerges as a valuable ally. By collaborating with a DMM, financial advisors can enhance their services, deepen client relationships, and ensure that the best-laid plans become reality. So, consider adding a DMM to your client team—a partner who not only manages the daily financial minutiae but also strengthens the advisor-client bond.
Remember, it’s not just about the big meetings; the small, consistent steps truly make a difference.
For more information on how daily money managers can support financial advisors, visit:
Ashley Wunderlich, CFA, is the founder of Koradel Capital Management in St. Louis, MO, and is a passionate advocate for advancing the daily money management profession.
