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Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 7 planning approach and address immediate issues, such as protection and risk management, cash flow planning, and budgeting. Figure 2 displays the primary ways advisors must expand their planning approach to incorporate financial wellness. Advisors must move beyond helping with lifelong goals; they must broaden their efforts to include addressing issues that affect clients' day-to- day financial lives, such as choosing between employer healthcare options or deciding how quickly to pay down a home equity line of credit. Bridging the gap between the financial decisions of today with those of tomorrow creates a stronger financial foundation. FIGURE 2: TRADITIONAL FINANCIAL PLANNING'S EXPANSION INTO FINANCIAL WELLNESS By incorporating financial wellness practices into financial planning, advisors will be able to deliver truly holistic advice to their clients—advice that addresses both sides of a client's balance sheet, that targets immediate-term and long-term needs, and that securely protects clients from unforeseen risks and unpredictable events. This more comprehensive approach to advice, while beneficial to clients, places greater demands on advisors. Advisors are expected to do everything they have traditionally done, plus act as a coach and financial coordinator who must often get involved in the minutiae of clients' day-to-day financial situations. • Comprehensive assessment of clients' financial situations helps them achieve lifelong financial goals • The focus is on high-dollar goals, such as college funding and retirement planning • Cash flow and budgeting tend to be addressed only in context of cash flow needs in retirement and how much can be added to investment accounts annually • Assessment must also address issues clients face in managing their day-to- day financial lives • Focus must expand to helping with immediate goals, such as cash flow planning, budgeting, insurance, and risk management • Cash flow and budgeting advice also address clients' financial well-being by promoting healthy financial behaviors; advisors serve as financial coach and work with clients to develop short-term action plans Addition of financial wellness Traditional financial planning Source: Aite-Novarica Group