How should you plan a client when non-intermediating financial planning?
When you set up a non-intermediating financial planning firm. There’s not enough value in the ‘traditional’ financial planning process to justify the sale when you remove product advice.
Traditional
- Contract
- Factfind
- Needs analysis
RecommendationImplementation- Review
It just leaves needs analysis.
Modelling accumulation, preservation, crystallisation, decumulation and succession.
The hand your money over plan. Hand your money to providers, and they hang on to it for as long as possible before handing it back. “Stand and deliver,” from the highway robbers.
And this stand and deliver planning, fails to justify the fee as clients see it for what it is.
Highway robbery.
Contemporary financial planning is about planning the client before planning the money. Planning goals in every area of the client’s life, not just financial. But intellectually, materially, emotionally, and spiritually. Including things money can’t buy. Like friendships, love, respect, faith, honour.
With proper financial planning we answer the question, “what’s your life purpose?”
The answer is to use gifts and talents in the service of others.
We ask the question; “how do you create wealth?” For no “hand over your money to us” product creates wealth. The client creates wealth.
The answer is, turn your purpose into a vocation. Include “the business plan of you” in the financial plan. This creates wealth.
Traditional financial planners must learn to:
- Plan goals in every area of the client’s life.
- Include things that money can’t buy. Like friendship, love, respect, faith, honour.
- Establish the client’s life purpose.
- Turn the purpose into a vocation.
- Produce a “business plan of you” to create wealth.
The focus is wealth creation. Not wealth management. And wealth in every area of the client’s life.
When the business plan is done properly, it turns a lifestyle business into an equity business and generates a lifetime of income, plus a valuable asset.
When you do financial planning properly, fully, in the contemporary way, the “hand over your money to us” products become superfluous. As the business plan of you makes good those shortfalls.
You treat the client as the customer, not their money.
When you do this with friendship, love, respect, faith, honour, the client runs their own money.
The “I’ll hang on to my money thank you” method. Intermediation becomes unnecessary. Product advice is removed and not missed.
The resulting financial plan has enormous value. Value that the client appreciates and will pay for. You justify the fee.
If you are a traditional financial planner looking at setting up a non-intermediating financial planning firm, first become a contemporary financial planner.
Contact us today to find out how the Academy of Life Planning can help you transition from Financial Intermediary to Non-Intermediating Financial Planning firm.
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📧 steve@aolp.co
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Academy of Life Planning 