‘Spend vs. Borrow’ and ‘Mortgage Refinance’ Blocks to Enhance Ongoing Advisor-Client Conversations

 Envestnet | MoneyGuide announced the launch of two new blocks – the Spend vs. Borrow Block and the Mortgage Refinance Block – in its MyBlocks^SM series.

“Given the current interest-rate environment, many Americans are wondering whether now might be a good time to refinance,” said Tony Leal, President of Envestnet | MoneyGuide. “Also top of mind are thoughts such as: ‘What is the best way to spend my latest stimulus check? Is it better to pay down debt, or invest the extra cash?’ The timing is just right for our latest blocks to further enhance these types of meaningful conversations that advisors are having with clients.”

The MyBlocks series breaks down complex financial topics and questions and also offers side-by-side comparisons of different potential outcomes. With the launch of these new blocks, this innovative ecosystem now includes 35 bite-sized, interactive modules that empower advisors to have more impactful conversations with clients about their goals, financial plans and how to move toward financial wellness.

Spend vs. Borrow Block: 

• Guides clients to make a better-informed decision between liquidating assets and taking out a loan to pay for a specific goal.
• Within the block, users can easily create multiple scenarios—which take into consideration loan options based on current interest rates and credit scores, as well as financial assets—on purchases under consideration such as a car, home improvement project, and a vacation.
• Can open up opportunities for advisors to provide a loan referral and keep managed money with the firm, as opposed to having it liquidated. Firms can embed their product solutions into the block.

Mortgage Refinance Block:

• Helps the client determine if refinancing current mortgage debt at current interest rates would be beneficial and free up extra money.
• Digitally engages and “walks” the client through the thought process.
• Can lead to new lending opportunities.

“We believe holistic advice and planning are the keys to helping clients achieve financial wellness,” said Mr. Leal. “Debt and credit strategies can make or break a financial plan. Given this, Envestnet Analytics has a tool accessible by advisors in MoneyGuide to quickly identify possible lending opportunities for their planning clients. This is a growing trend that we’re excited to stay in front of as we build more product-aligned blocks throughout 2021.”