The financial advisory business has changed dramatically over the last 30 years. Early on, a financial advisor was, for the most part, a converted stock or insurance broker looking to move away from a transaction-based business model. The rise of mutual funds and managed portfolios made this transition easier, but at its core, the job still revolved around making one-off recommendations to meet clients’ immediate needs.
As time passed, the industry matured. Portfolios became more tailored to meet clients’ goals, fears, and aspirations. Advisors began incorporating estate planning, while insurance products became increasingly sophisticated. Eventually, the profession found a way to bring all of this under one umbrella—the financial plan. More than just a retrospective grade on past financial decisions and current standing, the plan became a forward-looking tool to map out the future.
The financial plan took off like a rocket. Advisors eagerly handed clients 100-page binders stuffed with charts, projections, and complex jargon. Thankfully, technology has since streamlined the process. Tools like RightCapital and eMoney now allow advisors and clients to view real-time updates and gain clarity on where a plan stands—powered by data flowing through the system.
Which brings us to the most critical, yet often overlooked, element of the financial planning process: the data itself. Financial planning is, at its heart, a mathematical model. And like all models, it adheres to the principle of “garbage in, garbage out.” Poor data leads to flawed outcomes—plain and simple.
Typically, clients offer a summary of their expenses, mortgage payments, insurance premiums, and a few anticipated costs like college tuition. Advisors then apply assumptions such as inflation and use this data—along with income, net worth, and retirement targets—to generate various reports, including Monte Carlo simulations to assess probability of success. On the surface, this seems comprehensive. But it misses one undeniable truth: life is not linear.
We rarely account for the broken water heater, the fallen tree damaging the roof, or the cost of long-term care—for ourselves or our loved ones. Most financial plans are built around predictable events, but life is anything but predictable. And unpredictability often comes with a hefty price tag.
That’s why at Rolling Hills Advisors, we don’t just grade your plan—we aim to ‘break’ it. We intentionally stress-test your strategy, probing how much financial strain it can truly handle. We explore both the practical realities—like aging parents needing care—and the aspirational dreams, like finally buying that red Porsche 911 you dreamed about as a teenager. By asking the tough questions and challenging the assumptions behind your data, we’re not just building a plan—we’re building resilience.
If you, or someone you know, would benefit from a deeper, more honest look at your financial roadmap, the team at Rolling Hills Advisors is here to help.
This material is provided for informational and educational purposes only. It does not consider any individual or personal financial, legal, or tax circumstances. As such, the information contained herein is not intended and should not be construed as individualized advice or recommendation of any kind. Where specific advice is necessary or appropriate, individuals should contact their professional tax, legal, and investment advisors or other professionals regarding their circumstances and needs.
Any opinion expressed herein is subject to change without notice. The information provided herein is believed to be reliable, but we do not guarantee accuracy, timeliness, or completeness. It is provided “as is” without any express or implied warranties.
There is no assurance that any plan or strategy will be successful. Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results, and nothing herein should be interpreted as an indication of future performance.
Investment Advisory Services are offered through Mariner Platform Solutions (MPS), an SEC Registered Investment Adviser. Rolling Hills Advisors and MPS are not affiliated entities. For additional information about MPS, including fees and services, please contact MPS or refer to Form ADV Part 2A, which is available on the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Registration of an investment adviser does not imply a certain level of skill or training. MPS does not provide legal or tax advice.
