40% Faster Onboarding: Military Veteran Financial Planning

40% Faster Onboarding: Military Veteran Financial Planning

Executive Summary

Military veterans transitioning to civilian life face unique financial complexities, requiring specialized planning that often comes with a lengthy onboarding process. Summit Capital Partners recognized this friction and partnered with Golden Door Asset to streamline their military-to-civilian transition financial planning program. By implementing a customized digital onboarding solution, Summit Capital Partners reduced their onboarding time by 40%, enabling veterans to access critical financial planning services faster and more efficiently.

The Challenge

Military veterans embarking on civilian careers frequently encounter a complex landscape of financial decisions vastly different from their military experiences. Understanding and navigating these challenges requires specialized financial planning. Consider these common scenarios:

• Pension & Retirement Restructuring: Many veterans have to determine the best way to manage their Thrift Savings Plan (TSP), often involving complex decisions regarding rollovers to IRAs or other investment vehicles. For example, a Staff Sergeant retiring after 20 years might have a TSP balance of $350,000, requiring careful consideration of tax implications and investment strategies to ensure long-term retirement security. Failing to optimize this rollover could cost the veteran tens of thousands of dollars in unnecessary taxes and lost investment growth.
• VA Benefits & Compensation Navigation: Veterans are often eligible for various VA benefits, including disability compensation, education benefits (GI Bill), and home loan guarantees. Maximizing these benefits requires understanding complex eligibility requirements and application processes. A veteran with a 70% disability rating could be entitled to $1,529.95 per month in tax-free compensation. However, many veterans underutilize these resources due to a lack of awareness or difficulties in navigating the bureaucratic process. This can translate to a loss of $18,359.40 annually.
• Healthcare & Insurance Planning: Civilian healthcare and insurance systems differ significantly from the military's TRICARE program. Veterans need guidance in selecting appropriate health insurance plans, understanding deductibles and co-pays, and managing healthcare costs. A family of four transitioning from TRICARE Prime to a private health insurance plan might see their annual healthcare costs increase from negligible to $8,000 - $12,000, highlighting the need for careful budgeting and insurance planning.
• Credit Building & Debt Management: Building or rebuilding credit after military service can be challenging, especially if deployments or frequent moves have disrupted financial stability. Many veterans face higher interest rates and less favorable loan terms due to limited credit history. An analysis by the Consumer Financial Protection Bureau (CFPB) found that veterans are 40% more likely to have a credit score below 620 compared to their civilian counterparts, making it harder to qualify for mortgages and other loans.
• New Career & Entrepreneurship: Transitioning to civilian employment often requires navigating new job markets, negotiating salaries, and understanding employee benefits packages. Some veterans choose to start their own businesses, requiring capital, business planning, and access to resources for veteran entrepreneurs. A veteran launching a small business might need to secure a $50,000 loan, but a low credit score could significantly increase the interest rate, potentially costing them thousands of dollars in additional interest payments over the life of the loan.

Summit Capital Partners found that the traditional onboarding process for these veterans, which relied heavily on manual paperwork and in-person meetings, was time-consuming and inefficient. It often took an average of 10-12 business days to gather the necessary financial information, schedule initial consultations, and develop preliminary financial plans. This delay meant that veterans were spending valuable time navigating complex financial challenges without the benefit of expert guidance.

The Approach

Summit Capital Partners recognized the need to streamline its onboarding process to better serve the unique needs of military veterans. The firm adopted a multi-faceted approach that focused on leveraging technology to automate tasks, improve communication, and personalize the onboarding experience.

• Niche Specialization & Targeted Messaging: First, Summit Capital Partners defined a clear niche: financial planning specifically for military-to-civilian transition. This allowed them to tailor their marketing materials and website content to resonate with veterans' specific needs and concerns. Messaging emphasized understanding the challenges faced, such as TSP management, VA benefits navigation, and healthcare planning, establishing trust and credibility.
• Digital Onboarding Strategy: Summit Capital Partners determined to transition from paper-based processes to a fully digital onboarding experience. This decision was driven by the understanding that many veterans are comfortable with technology and prefer online interactions. The strategy focused on creating a user-friendly and intuitive online platform that would guide veterans through the onboarding process step-by-step.
• Customized Questionnaire Development: The cornerstone of the digital onboarding process was the creation of a customized questionnaire tailored to the unique financial circumstances of military veterans. This questionnaire was designed to gather comprehensive information about their military service, benefits eligibility, financial assets, debts, and future goals. Questions were phrased in clear, concise language that veterans could easily understand.
• CRM Integration & Automation: To manage the influx of data and streamline workflows, Summit Capital Partners integrated the digital onboarding platform with their existing Wealthbox CRM system. This integration allowed them to automatically create client profiles, track progress through the onboarding process, and trigger automated email communications.
• Hybrid Onboarding Approach: While emphasizing digital solutions, Summit Capital Partners adopted a hybrid approach incorporating the option of human interaction. Veterans could opt-in to speak with a financial advisor at any point during the onboarding process, ensuring that they received personalized support and guidance.

Technical Implementation

Golden Door Asset worked closely with Summit Capital Partners to implement a robust technical solution that would support their streamlined onboarding process. The following key technologies and methodologies were utilized:

• Typeform Questionnaire Design: A detailed, multi-page questionnaire was developed using Typeform, a user-friendly online form builder. The questionnaire included sections on:
  • Military Service: Branch of service, years of service, rank, deployment history, and discharge status.
  • VA Benefits: Eligibility for disability compensation, education benefits (GI Bill), home loan guarantees, and healthcare benefits.
  • Financial Assets: TSP balance, retirement accounts, savings accounts, investment portfolios, and real estate holdings.
  • Debts: Credit card debt, student loans, mortgages, and other liabilities.
  • Financial Goals: Retirement planning, education funding, homeownership, and business ownership.
  • The questionnaire included conditional logic to tailor the questions based on the veteran's individual circumstances. For example, veterans who indicated they were eligible for disability compensation were presented with additional questions about their disability rating and compensation amount.
• Wealthbox CRM Integration: The Typeform questionnaire was seamlessly integrated with Wealthbox CRM using Zapier. This integration allowed for the automatic creation of client profiles in Wealthbox whenever a veteran submitted the questionnaire. The integration also populated the client profiles with the information collected from the questionnaire, eliminating the need for manual data entry.
• Automated Workflow Development: Within Wealthbox, a series of automated workflows were created to streamline the onboarding process. These workflows included:
  • Automated Email Communications: Triggered email notifications to veterans at various stages of the onboarding process, providing updates on their progress and requesting additional information as needed.
  • Task Assignment: Automated task assignments to financial advisors, ensuring that each veteran received timely attention and support.
  • Data Analysis & Reporting: Automated data analysis and reporting to track key metrics, such as onboarding time, completion rates, and client satisfaction.
• Financial Planning Software Integration: Wealthbox was integrated with the firm's financial planning software (e.g., MoneyGuidePro, RightCapital) to enable advisors to quickly develop preliminary financial plans based on the information collected during onboarding. This integration minimized manual data entry and improved the accuracy of the financial planning process.
• Data Security & Compliance: Data security was a paramount concern throughout the technical implementation. All data was encrypted in transit and at rest, and the system was designed to comply with relevant data privacy regulations, such as GDPR and CCPA.

Results & ROI

The implementation of the streamlined onboarding process yielded significant improvements in efficiency and client satisfaction:

• Onboarding Time Reduction: The average onboarding time was reduced from 10-12 business days to just 6-7 business days, a 40% decrease.
• Client Satisfaction Improvement: Client satisfaction scores, measured through post-onboarding surveys, increased by 25%. Veterans reported feeling more informed and supported throughout the onboarding process.
• Increased Client Acquisition: Summit Capital Partners saw a 15% increase in new client acquisition in the first quarter following the implementation of the streamlined onboarding process. This was attributed to the improved client experience and the firm's enhanced reputation within the veteran community.
• Cost Savings: The automation of tasks and reduction in manual paperwork resulted in a 10% decrease in administrative costs.
• Financial Impact Example: A veteran with a $400,000 TSP balance previously onboarded over 10 days could now be reviewed within 6 days. This meant the investment plan could be implemented much sooner. If that portfolio earns an average of 7% annually, that accelerated implementation allows for approximately $767 in additional investment gains during the first two weeks alone.

Key Takeaways

• Niche Down: Specializing in a specific niche, such as military-to-civilian transition, allows you to tailor your services and messaging to resonate with a specific audience.
• Embrace Technology: Leverage technology to automate tasks, improve communication, and personalize the client experience. Consider digital questionnaires and CRM integrations.
• Prioritize Client Experience: A streamlined and efficient onboarding process can significantly improve client satisfaction and drive client acquisition.
• Measure Results: Track key metrics, such as onboarding time, completion rates, and client satisfaction, to continuously improve your onboarding process.
• Offer Hybrid Support: While digital onboarding is efficient, provide options for personalized human support to address individual needs and build trust.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors unlock new revenue streams by efficiently serving specialized client segments and automating complex financial planning tasks. Visit our tools to see how we can help your practice.