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What are the Pros and Cons of Online Financial Planning?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 03 April 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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Online financial planning is a modern strategy that helpful for businesses and individuals alike. Essentially, the process of putting together and following a financial plan in a virtual environment provides the benefits of being able to access financial records from any location, while also being able to obtain online assistance when and as needed. At the same time, there are some concerns about the security of online financial planning, since so much information is stored on remote servers that could be compromised.

There are a number of benefits connected with online financial planning. One has to do with the immediate access to professional financial advisors. Many services that offer these online budgeting and planning options also provide around the clock access to advisors who can aid in helping to assess upcoming financial opportunities and offer advice on how to make the most of those opportunities. This allows end users to easily access the resources needed to make informed decisions about all sorts of financial issues like reworking a budget to allow for a new car payment or even deciding whether or not to pull money from savings for investment in a specific venture.

Another advantage connected with online financial planning is immediate access to financial records, budgets, and plans regardless of where the end user happens to be at any given time. This means company officials who are traveling can use access codes and other security tools to connect with the data from just about anywhere, provided there is a way to connect to the server housing the data. For individuals, this access to home budgets and other financial records via an online financial planning program means the ability to quickly manage funds in the event of an emergency, or as the means of selling some assets to avoid a loss while buying other assets to create some sort of return or increase.

While there are benefits associated with online financial planning, there are also some possible drawbacks to consider. One has to do with the security of the data housed on the remote server. Even with the most stringent of security measures, there is always the chance that the server could be compromised and the data used by unauthorized personnel. Depending on the type of backup procedures used by the service, there is also the possibility of a permanent loss of data. In some cases, the cost of maintaining an account with an online financial planning service may be prohibitive. For this reason, companies and individuals should look closely at this type of online option, determine if the benefits outweigh the potential liabilities, and decide if this is really the best solution for all concerned.

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