Which severely limits how many clients a typical financial planner could even handle (to generally no more than 2-3 new clients per month at the most!).
As according to our recent Kitces Research study on “How Financial Advisors Actually Do Financial Planning”, the typical financial plan takes 10 hours to construct, and the average financial planner spends a whopping 34.5 hours on the entire financial planning process through the first year of working with the client (from establishing the relationship and data gathering, to analysis and crafting recommendations, along with plan presentation, implementation, and monitoring). And for an advice-giving professional, the time to support the planning process can be even more arduous… as it both takes time to do the planning and analysis itself, plus the time to gather all the relevant information up front, and translate it into advice that can be presented and implemented.Ĭonsequently, it is perhaps not surprising that one of the biggest hindrances to the delivery of financial planning is simply the time it takes. It takes time to sit down and think about the possibilities, how they might play out, and what must be done to reach the desired goal. One of the biggest challenges of planning ahead – whether with respect to our finances, or anything else in life – is that it takes time.
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