As financial planning professionals, I think we can all agree that the financial planning we have been taught is financial planning with a view to intermediation.
Intermediation is between a client and a regulated product provider, such as an insurance, pension, investment, or mortgage company. The financial planner is appointed as an agent of the provider and distributes their product. The financial planner is a regulated distributor. And HMRC classifies the transaction as VAT-exempt, and the product provider facilitates the deduction of adviser charges from the product, or pays a commission. Nine times out of ten, the adviser’s fee relates to how much product has been sold.
The financial planning method used is needs analysis. The planner looks at the amount of product the client needs, calculates the shortfall, and sells the difference. This is the PRISM method of financial planning, indicating the priority of needs as Protection, Retirement, Investment, Savings, and Mortgage.
PRISM financial planning does not require cashflow forecasting, which is why 44% of financial planners and 82% of financial advisers do not provide cashflow forecasts.
PRISM financial planning does not require a life plan.
Personally, that makes me question the suitability of adviser recommendations, since specific client circumstances are not taken into consideration. I think I’m in the minority, and I would think this to be so.
I have bad news for us Chartered Financial Planners and Certified Financial Planners. PRISM financial planning is in my opinion, and the opinion of life planners generally, not considered proper financial planning.
Proper financial planning, as the more experienced financial planners amongst us have come to understand, is planning the client before you plan the money. Treating the client as the customer, not the money.
This requires life planning.
In my minority opinion, this also requires a lifetime cashflow forecast.
But I think there is an extra skill required to do this right.
That is, we must understand the influence of ego-soul dynamics on mental and physical health.
For proper financial planning is to put the financial architecture in place to support human well-being.
What we teach at the Academy of Life Planning is a financial planning method called the GAME Plan. This methodology draws on the teachings of Richard Barret in his book A New Psychology of Human Well-Being: An Exploration of the Influence of Ego-soul Dynamics on Mental and Physical Health.
With the GAME Plan, we first identify what would be a values-led and purpose-driven life for our client. We then look at ego needs and soul desires to create a favourite future, which generates a lifetime liability forecast. We include project planning to make the plan achievable. We use the gifts identified in the purpose coaching sessions and leverage entrepreneurial opportunities to create sustainable livelihoods. We use these income streams to create optimum asset strategies and drop the incomes and assets into the lifetime cashflow forecast to bridge the gaps.
Through this asset alchemy we create wealth, abundance, and prosperity in mind, body, heart, spirit, and bank account. We do so with respect to purpose, people, planet, and profit.
Surplus assets are used for self-actualisation and self-transcendence desires. Such as, know yourself, find your tribe, make the world a better place for you having lived.
The clients live longer better a values-led and purpose driven life.
To make progress at proper financial planning, we need to stand on the shoulders of the financial planners of the past, not reinvent everything. We need to unite the various disciplines of financial and human knowledge into an undifferentiated whole.
By decentralising the financial planning process and handing the tools to the clients to be their own financial planners, we eliminate poverty and improve well-being for everyone.
FAQs for the Academy of Life Planning
1. What sets the Academy of Life Planning apart in the financial planning industry? At the Academy, we transcend traditional financial planning by integrating life planning into our approach. We believe in treating our clients as whole individuals, not just portfolios. This means understanding and aligning financial strategies with your life values, goals, and aspirations.
2. How does the Academy’s approach to financial planning benefit me personally? Our unique approach ensures that your financial plan is not just about wealth accumulation but about fulfilling your life’s purpose and achieving holistic well-being. We guide you in identifying your values and aligning your financial decisions with these, leading to more fulfilling and purpose-driven financial choices.
3. Can the Academy help me if I’m new to financial planning or lack financial knowledge? Absolutely. We are dedicated to democratising financial planning, making it accessible and understandable regardless of your prior knowledge or experience. Our resources and coaching are tailored to empower individuals at all stages of their financial journey.
4. What type of educational resources does the Academy provide? We offer a range of resources including comprehensive guides, workshops, webinars, and one-to-one coaching sessions, all designed to equip you with the knowledge and tools necessary for informed financial decision-making.
5. How does the Academy ensure the privacy and security of my information? We maintain the highest standards of privacy and security. Your personal and financial information is treated with utmost confidentiality, ensuring that your privacy is always protected.
6. Does the Academy offer personalised coaching and mentorship? Yes, personalised coaching is a cornerstone of our services. We provide bespoke guidance to navigate your unique financial and life journey, tailoring our support to meet your individual needs and goals.
7. What kind of community does the Academy foster? We believe in the power of community. Our global network offers a supportive environment where members can share experiences, insights, and grow together. This community fosters camaraderie and collective growth.
8. How does the Academy align financial planning with broader life goals? We use a holistic approach that considers not just your financial situation but your life’s purpose, values, and goals. This alignment ensures that your financial plan supports and enhances your overall life journey.
9. Is the Academy’s approach suitable for experienced financial planners? Certainly. Experienced planners will find our approach refreshingly holistic, offering new perspectives and tools to enhance their practice and better serve their clients.
10. How can I become a part of the Academy of Life Planning? Joining is simple. Visit our website for membership details or contact us directly for more information on how you can be a part of this transformative movement.
Academy of Life Planning 