FP Alpha: Can This AI-Powered Tool Revolutionize Financial Planning?

Financial advisors excel in general financial planning—determining retirement savings, analyzing portfolio allocations, and projecting cash flows. However, comprehensive financial planning also requires expertise in tax planning, estate planning, and insurance analysis. Since most advisors are not tax experts, estate attorneys, or licensed insurance professionals, this creates a challenge.

FP Alpha aims to solve this problem with technology driven by artificial intelligence that offers automated tax, estate, and insurance analysis. Founded by Andrew Altfest, president of Altfest Personal Wealth Management, and Luis Quiroz, former AI development leader at the Mexican Stock Exchange, FP Alpha streamlines financial planning by analyzing client documents and generating actionable insights.

But does FP Alpha live up to its claims? We put it to the test.

How FP Alpha Works

FP Alpha integrates with leading financial advisor tools like MoneyGuidePro, Redtail, and Salesforce. By answering a few questions and uploading tax returns, estate documents, and insurance policies, advisors can receive comprehensive analysis, visual reports, and task lists.

Testing FP Alpha: A Real-World Case Study

To evaluate FP Alpha, we used the financial profile of a married couple, Dan and Mary. In their 50s, they own a home, have professionally managed investments, and maintain standard insurance policies. Dan owns an S-Corporation, and Mary is a well-paid executive assistant. Since they already follow best financial practices, we wanted to see if FP Alpha could still provide valuable insights.

The Process

Setting up Dan and Mary in FP Alpha was simple. I entered their personal details and uploaded their tax returns for the past two years, estate documents (living trust, wills, and powers of attorney), and insurance policies. Preliminary insights were available instantly, while a full review took a few days, as human experts verify the AI tool’s findings.

Results and Key Insights

FP Alpha efficiently summarized Dan and Mary’s financial data and offered actionable recommendations across three key areas:

1. Tax Planning

FP Alpha provides a tax summary similar to standard tax software but with added value, such as:

• Visual tax bracket analysis for both federal and state levels.
• Breakdown of itemized versus standard deductions.
• Charitable contribution limits assessment.
• Qualified business income limits analysis.
• Medicare premium and estimated tax payment evaluation.
• Roth conversion analysis: The tool revealed that Dan and Mary could convert up to $93,464 without moving into a higher tax bracket.

Recommended Actions:

• Consider a donor-advised fund to maximize deductions.
• Pay investment management fees directly from retirement accounts.
• Evaluate Roth conversion strategies.
• Make nondeductible retirement contributions.

2. Estate Planning

Reviewing estate documents is typically tedious, but FP Alpha summarized key details, including document completeness, dates, distribution plans, and trustees.

Recommended Actions:

• Establish pour-over wills to align with Dan and Mary’s trust.
• Create a healthcare directive for Dan.
• Ensure up-to-date powers of attorney.

3. Insurance Analysis

FP Alpha made insurance reviews effortless by summarizing coverage levels, deductibles, and premiums.

Recommended Actions:

• Align home, auto, and umbrella policies for consistency.
• Add valuable property coverage.
• Consider earthquake insurance.
• Review loss of use, medical payments, and replacement coverage limits.
• Bundle home, auto, and umbrella policies for potential savings.
• Dan should add towing and rental car reimbursement to match Mary’s coverage.

Pricing

FP Alpha offers affordable pricing based on the number of cases and advisor level:

• Tax analysis: $13–$15 per case.
• Estate analysis: $179 per case.
• Property and casualty insurance analysis: $58 per case.

Package pricing can offer additional savings.

Verdict: Thumbs-Up for FP Alpha

FP Alpha is a powerful tool for financial advisors, filling critical gaps in tax, estate, and insurance planning. It streamlines document review, enhances planning insights, and integrates seamlessly with existing financial software. With reasonable pricing and AI-backed accuracy, FP Alpha is an excellent addition to any advisor’s toolkit.