Tag: financial planning

What’s the difference between Financial Planning and Financial Life Planning?

What is Financial Life Planning?

Anyone who has ever come into contact with a Serenity Financial Life Planner will be more than aware of our passion for not just financial planning, but financial life planning.

That small four letter word ‘life’ may not seem that significant but it epitomises the whole point of us being here. The whole purpose of being on the planet is about life, and without that key element, perhaps there is no point, no purpose, and no logic.

Where did Financial Life Planning come from?

In the attached article, George Kinder, the founding father of Financial Life Planning explains the huge difference between financial planning and financial life planning.

In short, one deals with people’s money, the other focusses on their lives and happiness first, then sets to work around the money part. In a way, I guess it is comparing living to living life.

Isn’t finance all about policies?

To quote one of our very great friends Andy Hart of Maven Adviser, ‘no adviser ever got a letter from a pension policy asking for help’.

What should my adviser really be doing?

Emotion drives decisions, and decisions drive life, this is when we finally figure out that people’s emotions drive everything. To understand emotions, and ultimately our clients’ drivers through their lives, we need to listen to them, not project our opinions on how clever we think we are.

Why is financial life planning different?

Ultimately, it’s all about having a deep and meaningful relationship with our clients through their lives, not a synthetic relationship with their money for as long as it lasts. Without that deep relationship, we are just continually guessing at what may be best for our clients, guesses which may have a long term detrimental effect on their happiness.

Together we can bring some Serenity to your life

 

How easy is it to save money?

Is saving money just like losing weight?

Well there is a question – and in short, yes – the principle is the same, and here is why…

How do most people go about losing weight?

Generally, people start by getting good idea of how heavy they are, figuring out where they want to get to, and start to monitor their progress. The progress is made by changes to behaviour, an approach of what is consumed, and how much energy is spent.

Is saving and weight loss just about will-power?

A disciplined approach to weight-loss is something many of us recognise, and in a way, is no different to how perhaps you should approach a disciplined structure to money management.

Discipline and structure is how to save

By figuring out how much money is needed to be saved, how the budget needs to be trimmed, or a particular financial focus is needed, you have the equivalent of a weight-loss goal.

Awareness of consumption is important

Follow this up with a mindful and intentional structure and monitoring of expenditure, the spending behaviour may well change (just like by eating apples instead of cakes for example). Less money is consumed (like less food), and perhaps less is spent (or at least spent in a more intentional manner).

Do I need a support group or mentor?

A sustained, monitored and coached approach is of huge benefit for many people with regards their finances in order to avoid the monetary equivalent of yo-yo dieting, yet it doesn’t seem to be widespread.  People happily spend over £4 a day on take away coffee, and another £6 on lunch, yet many would baulk at the idea of paying to be coached around their money.

Do people pay for financial coaching?

A good number of our Serenity clients around the UK, although they have accumulated wealth, may have done so by accident (through an inheritance perhaps, or even having it retained within their business), yet still need significant ongoing support and coaching to retain their understanding and reality of money. This is the value our clients find in our relationship with them – and that is what it is, a relationship with our clients, not their money.

Do I need investments to have financial coaching?

In fact, more and more people are now paying for financial planning, coaching and support and not even having investments in place.  Instead, they see the real value in changing their habits and being supported on a regular basis to keep them moving towards their goals.

That is what matters most – people arriving at their goals, and sustaining them.

Together we can bring some Serenity to your life

 

 

Pension reviews – the new timeshare scandal

Even those of us in the profession get phone calls offering a free pension review (I have also been told that my investments have underperformed and I am entitled to compensation, my life cover was not advised properly, and my mortgage was not set up on the right rate) recently, I had this call which went like …

“Hello, I am from the pension review service, and we are phoning to give  you a free review of your pension as it is probably underperforming”. Continue reading “Pension reviews – the new timeshare scandal” →

Why just goals or objective based planning is selling the client short

Pure goals and objective based planning is far better than the greedy pursuit of ‘more’ which has been the bedrock of financial advice for many a year.  Look at it, once we have more, we want some more of that more – it is a never satisfying cycle. Continue reading “Why just goals or objective based planning is selling the client short” →

How the Tax System Works – in Beer

A bit of tax fun (not words which usually go that well together)

I came across this tax analogy from Toby Morris.

It takes the example of a group of people going out for a beer, and distributing the bill according to their means in life – so far so good, some obviously pay more than others, and some pay nothing at all as they are unable to. Continue reading “How the Tax System Works – in Beer” →

The Delicatessen v The Supermarket – where do you shop for your finances?

Think of the delicatessen, the smell of the meats, the allure of the cheeses, pots of olives, some fine pate and wine perhaps, a crusty artisan loaf.  I bet your mouth is watering already at the sights, sounds, aromas and feelings which arise!

The delicatessen, that wonderful experience where you leave with exactly what you wanted, just the right amount, tailored perfectly for your needs.  No waste, good quality, they have taken the time to talk to you, to understand what it is that you really want, making your luncheon or dinner party all the more special.  Your friends are amazed by the quality, you enjoy yourself, primarily, because you have no anxiety about the food on offer, no compromises, and none of the frantic behaviours which plague so many occasions.  What you have, is right for your party, and only your party, it is a bespoke meal, made to your wishes, and what is more, the experience of buying it was rather relaxed and jolly.

This is a far cry from what you may find in supermarkets, where, whilst there may be aisle upon aisle of choice, you have to build the meal yourself, asking yourself does everything really go with everything else? What about the quality? You can’t think, music pumping out, children hanging off shopping trolleys, CDs being sold alongside hedge trimmers, alongside muffins – SO MUCH INFORMATION NOISE. At last you reach the till, and then comes the Gerry Cottle Challenge of trying to juggle all of your shopping into the bags and trolley before the enthusiastic checkout person sends your goods crashing to the floor. Hardly the best way to set up a relaxing chilled our dinner party!

There really is no reason why your financial experiences should not be the same as shopping at the delicatessen as opposed to the supermarket. Continue reading “The Delicatessen v The Supermarket – where do you shop for your finances?” →

Making sure your financial planner is not just a bag handler …

Can you remember the last time you went on holiday and arrived at the airport ?

In some places, the concierge meet you at the airport working on your behalf, making you feel important, at ease, as if they care – OK, you may well have paid a little more for this service, but you feel comfortable that all of your luggage is being taken care of.  Those precious items, expensive perfume, gifts, expensive cases, what-ever, are being treated with care.  You will get to your destination, with the minimum of discomfort because everything is in line with your expectations and aims.  Admittedly, not many of us plan to have items smashed or broken in our luggage, but often it is not unexpected.  When you arrive at the hotel, the bags are taken our room, so that you can focus on enjoying a much looked forward to spell of relaxation and enjoyment, without the worry, or labour, of dealing with the luggage.  Magically, it all arrives in perfect working order, and you go about the business of the holiday – the whole thing we have been focussing on.

OR ….

You do it on a budget, saving yourself a few quid to DIY, or see what happens when you get there. Continue reading “Making sure your financial planner is not just a bag handler …” →

Free Financial Advice is usually worth exactly what you paid for it. Here’s why

In the article, the journalist says “…free advice is usually worth exactly what you paid for it…”  which may not be necessarily so.

In financial planning, free advice (albeit sometimes well intended) can frequently take you further away from where you want to be, putting you in a more precarious or risky position than  you were before. Continue reading “Free Financial Advice is usually worth exactly what you paid for it. Here’s why” →

What is a financial life plan ?

Here is a questions often asked – what is a financial life plan, and why would I need that as opposed to a financial plan?  

More and more consumers are understanding that there is a difference between the old way of financial advice (selling as many products as possible) and financial planning (where recommendations are able to demonstrate that they are relevant and appropriate for the long term).

So where is Financial Life Planning different? Continue reading “What is a financial life plan ?” →