If there was ever a time when financial planning was staid or uncomplicated, that time is not now. With housing prices in free-fall, the financial markets on a roller coaster and the value of the dollar dropping like a rock, clients and their accountants are scrambling to rebuild, redirect and in some cases completely re-write plans for goal achievement and retirement. Strangely enough, it is the users of the software and not the software itself that is evolving. Most of the planning software packages have undergone little, if any, change over the past two years, with most even avoiding the move to the Internet-based applications.

That’s just as well, since clients seem to be seeking familiarity, stability and reassurance as much as they are financial juggling and additional presentation bells and whistles.

For 2008, we consider a mix of eight financial planning software products that range from narrow and precise planning tools to comprehensive systems. Each is at or near best-in-class status for performance, and all should be of interest to accounting firms with established or growing bases for personal financial planning.

Cheshire Wealth Manager

Cheshire Wealth Manager, a new, comprehensive planner, replaces the Cheshire Financial Planning Suite.

Critical new features include the ability to import client data from Excel, Albridge and Schwab Portfolio Center; to automatically derive the asset allocation of a security based on a ticker symbol or name lookup; to rebalance accounts to a new asset allocation in future years; to set spending order by account with the option of spending multiple accounts simultaneously; customize reports with your company logo, colors and choice of fonts; and save printed reports using the .PDF file format.

Though not specifically aimed at planners who also recommend or sell assets to the planning client, the software does have powerful features for assessing and managing financial assets. It offers a robust Monte Carlo probability analysis using varying rates of return (standard deviation and correlation) for all asset classes; utilizes historical data for 17 asset classes, with some going as far back as 1920; and provides room for including a firm’s Investment Policy Statement into the printed report.

It’s also highly customizable, allowing the accountant to add asset classes, using historical or expected returns; modify asset allocation over time to support portfolio changes in the future; set the order of asset liquidation at the account level, enabling multiple taxations to be spent simultaneously; model the future purchase and/or sale of a major asset; and generate advanced what-if analysis to illustrate changing multiple variables at once.

Cheshire Wealth Manager is clearly a capable and powerful planning solution. It allows the accountant to run a simple goal-based plan suitable for clients in their early to mid years of investing, as well as more complete plans for clients who in their later years need more advanced planning depth and want to specifically manage their assets well in the peak earning to retirement years.

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