The Productive Cycle: How to design the elements of a Non-Intermediating Financial Planning process

There are four important elements in the non-intermediating financial planning process that when completed in the right order improve the outcome for the client. These are:

Goals: Multi-dimensional goal setting.

Actions: The project plan to achieve the goals.

Means: The lifetime cash flow forecast and ‘what if’ analysis to make good shortfalls and financial education on D2C solutions.

Execution: Personal coaching programme to encourage implementation and review.

The Productive Cycle: The GAME Plan.

The complete process in the correct order is Goals, Actions, Means, Execution.

This sets inspiring goals for the client in every area of their life, creates a project plan, plans the client before planning the money, puts in place the financial architecture to support the goals, includes wealth creation strategies in the ‘what if’ scenarios to plug shortfalls, educates on DIY wealth management solutions and provides personal coaching to support plan execution.

The outcome is a solid plan to achieve inspiring life goals. The client is likely to find the plan inspiring and productive.

The Exhaustive Cycle: Living within your means

The reverse cycle looks at the money first, uses knowledge to optimise wealth management solutions, then looks at the life the client can afford to live without outliving their capital.

The outcome is a plan to achieve uninspiring financial goals, likely to exclude things that money can’t buy. Like friendships, love, respect, faith, honour. It risks locking the client into the treadmill of work existence for the best part of 50 years on the bet they can buy their happiness in the last sixteen years. The client is likely to find the plan uninspiring and exhausting.

The Destructive Cycle: Treating the money as the client

Just looking at one element, say Means. Missing out the life plan. This is the approach a traditional financial intermediary transforming to a non-intermediating financial planner typically takes: The lifetime cash flow forecast and ‘what if’ analysis to make good shortfalls and financial education on D2C solutions.

The outcome is a plan to plug gaps in a shortfall analysis based on product.

The client is asked to pay highest premiums from ‘disposable’ income to D2C platforms to make good shortfalls in preservation, accumulation, crystallisation, decumulation and succession.

The goals are set instinctively by the planner, not the client. And, when someone else sets the goals, guess what’s in it for the client. Not much! The objective is to maximise financial wealth, and ignores wealth in other areas of the client’s life. The client is left poor, all they have is money. This is not deliberate, it is just the way the adviser has been trained.

This is the ‘asset hoovering’ approach taught by conflicted product providers and their agents for decades. Hand over your life savings to the industry to hold on to and milk for as long as possible.  This is the robo-advice model, the non-advised sale. The client is likely to find the plan destructive and leading to a lifetime of regret.

The top five regrets of the dying according to the book by palliative care nurse Bronnie Ware are: I lived my life as others expected me to live rather than true to myself, I worked too hard, I didn’t keep in touch with friends, I failed to speak my truth, I didn’t allow myself to be happy. Where are these needs addressed in the above methods?

Which process would your clients value most?

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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