July 21, 2017

8 Tenets of Financial Life Planning

Sadique Neelgund

8 Tenets of Financial Life Planning

Money Quotient is a very good platform for the budding and existing Financial Advisors. The Process of Money Quotient helps in building a good relationship with your client step by step. We have been using MQ Tools like Financial Satisfaction Survey, Life Transitions Survey & Wheel of Life for our Clients.

These tools give a clear picture of the Clients’ Background by keeping it simple & to the point. It helps to improve the Conversations with your Clients & have an insight into their minds which in turn helps us and them also to understand what it is they are expecting from various Life Goals.

These tools also help us in various Workshops & to do Customized Financial Planning of our new as well as Existing Clients.

Thus, the Money Quotient Tools have aided us in many ways to reach out to different audiences easily and focus on the goals we need to work with our clients.

The Financial Life Planning Process will help you define and design your unique version of “the rich life.”  -Money Quotient

The Financial Life Planning approach is client-centered. For the Financial Life Planner, the life of the client must be the axis around which financial discussions revolve and evolve. Although most individuals understand that money is not the be all and end all, they do perceive money as a means to building the life they desire and avoiding circumstances they will regret. The heart of Financial Life Planning Process is the conversation you have with your clients. Life Planning is a wider concept, Financial Planning is just a subset of it.

Financial Life Planning is simply a matter of broadening the conversation from asset management to life management. Intuitively, your clients will see the wisdom in developing a plan to use their money to make a life rather than using their lives to make money. Therefore, Financial Life Planning is not about having all the answers; it is about asking the right questions.

With the help of Financial Life Planning, you can help your client in creating a blue print of his life, to understand his Financial Goals & achieve them.

Financial Life Planning is about: 

  1. Exploring what money represents to your client
  2. Defining both the tangibles and intangibles that clients expect their assets to provide them
  3. Anticipating life events and transitions, and making financial preparations for those transitions
  4. Assisting clients in the process of establishing financial goals that facilitate their life goals
  5. Initiating awareness regarding the non-financial aspects of retirement preparation and retirement living
  6. Developing a network of professionals to whom you can confidently refer your clients

Eight Tenets of Financial Life Planning:

  1. Life is about change. The purpose of Financial Life Planning is to facilitate successful transitions.
  2. Each person’s life is a continuum of unique experiences. Life experience greatly influences how an individual perceives and responds to change.
  3. Each person’s life course is unique. In the past, most transitions were age-graded and occurred during predictable times in the life span. Today, either by chance or by choice, most individuals are following an unconventional life course.
  4. An adult’s orientation to learning is life centered. To engage adults in understanding a product, service, or process, they must see the relevance or direct application to their own lives.
  5. Adults have a strong need to be self-directing. Most individuals want to feel in control of their lives. The Financial Life Planning approach seeks to empower individuals to make wise financial decisions and to develop a sense of mastery in this area of life.
  6. Adults desire balance and meaning in their lives. The Financial Life Planning approach helps individuals to clarify goals in all areas of life and to design a financial strategy to support those goals.
  7. Each person’s internal compass (values & priorities) guides both the big and little decisions of life. Financial Life Planners will help clients identify their values and priorities in all areas of life, and then guide them in making financial decisions that are in sync with those values and priorities.
  8. Successful financial education and communications is built on asking the right questions. Good communication is more about listening than it is about talking. The goal of Financial Life Planners is to really get to know the individuals they work with in order to tailor advice to each person’s unique set of circumstances, goals, values, and priorities.

As a Financial Life Planner, your success hinges on moving beyond transaction thinking to transition thinking. This involves looking for effective ways to help each client make the connection between their money and their goals in all areas of life. Time is a valuable element for you & your clients. Therefore, it is crucial to keep the Financial Life Planning Process focused & efficient!

Source: www.moneyquotient.com

Web Content is written by Carol Anderson.

Carol is the founder and President of Money Quotient.  She has an M.S. in Consumer Economics & Family Resource Management and a diverse background in business, education, and financial services.  As a researcher, writer, and consultant, Carol has worked with a broad range of companies and non-profit organizations in designing studies, conducting analyses, and compiling research reports. In addition, Carol has written articles, developed publications, and designed educational tools, materials, and training workshops.

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