The Perfect RIA The Software Dilemma in Financial Planning [Episode 342]
Jan 5, 2026
Micah and Matt delve into the crucial role of foundational principles in financial planning. They critique the industry's reliance on software, urging advisors to grasp its limitations and understand outputs, rather than seeing it as a magic tool. There's a call to return to basics, such as manually filling out tax returns to master the process. The duo emphasizes that effective financial planning hinges on behavioral management, not just technical details, and shares insights on how custom software should evolve from real needs.
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Own And Fix Client Mistakes
- Own mistakes and fix them instead of promising to run more software to 'verify' the plan.
- Tell clients what you will do to correct the error and take responsibility transparently.
Overheard Promise To Run A Third Software
- Micah recounts overhearing an advisor promise to 'run the plan through a third software' after a mistake.
- He intervened because adding software after an error insults the client and avoids responsibility.
Software Is A Tool, Not The Foundation
- Financial planning software is a tool, not the foundation of fiduciary duty.
- Relying on black-box outputs without understanding inputs undermines fiduciary responsibility.