For decades, the financial planning profession has operated within a paradigm shaped by product intermediation. The old way trained advisers to act as intermediaries, bridging clients with financial products. While this served a purpose in its time, it left advisers with an incomplete toolkit, particularly for solving life’s bigger, more complex problems.
Today, we’re at a crossroads. A new paradigm is emerging—one that prioritises holistic wealth planning and shifts focus from managing money to solving life’s challenges. But to meet this new standard, we need to address two glaring omissions in the traditional financial planning syllabus:
- Life Planning:
This begins by planning the client, not their money. It means treating the client as the customer—not their portfolio or bank balance. Life planning centres on understanding an individual’s values, aspirations, and challenges. It puts the human story first, ensuring financial decisions serve their deeper goals and create a life of meaning and purpose. - Human Capital Development:
In the new paradigm, wealth is not just what’s in the bank; it’s the productive potential of individuals—their skills, ideas, and entrepreneurial drive. Advisers must help clients identify these assets and harness them to create sustainable livelihoods, future earnings, and lasting impact.
With these two additions, financial planners gain a complete toolkit—one that goes beyond transactions to transform lives.
The Shift from Delegation to Education
In the old paradigm, advisers often sought to manage money to tap into recurring fees. This model appealed to wealthy delegators, often baby boomers, who grew up in an era of information asymmetry. Before the internet and modern tools, these clients trusted experts to make decisions for them.
But times have changed. Gen X, Y, and Z have grown up with the internet and now access AI technology that levels the information playing field. These generations don’t want to delegate blindly; they want to be empowered. They seek education, not intermediation.
This trend is evidenced by a recent survey conducted by Finimize, which highlights an exciting opportunity for today’s financial advisers:
- A thirst for knowledge: Over half of retail investors (57%) value financial brands that educate or inspire.
- A demand for distinctive advice: 46% of investors see financial brands as too similar, while 51% are more likely to remember brands that use unique content.
- A push for meaningful engagement: A fifth of retail investors want more educational content, and 19% want more personalised financial advice.
As Max Rofagha, CEO of Finimize, puts it: “Retail investors want more than just a platform or transaction; they want financial brands that understand their personal values and provide genuine educational value.”
Why This Matters Now
We’re entering a period of massive change. The Great Wealth Transfer—an $84 trillion shift—will place Gen X and Millennials in control of half the world’s wealth by 2030. These generations are selective, value-driven, and eager to make informed decisions.
For financial advisers, this represents a defining moment. By offering education, inspiring confidence, and aligning with clients’ values, advisers can differentiate themselves as trusted partners in their clients’ financial journeys.
A Call to Action
At the Academy of Life Planning, we believe financial planning is about more than managing money. It’s about empowering individuals to achieve their life goals, creating a sustainable livelihood, and aligning finances with personal values.
If you’re ready to step into the new paradigm and become part of this movement, we’re here to guide you. Through our transformative training and holistic approach, we help financial planners build practices that truly make a difference.
It’s time to go beyond intermediation. It’s time to embrace education, empowerment, and transformation.
Join us today and redefine what it means to be a financial planner.
Q&A: Understanding the New Paradigm in Financial Planning
Q: What’s the main difference between old and new financial planning paradigms?
A: The old paradigm focuses on intermediation—connecting clients to financial products and managing their money for a fee. It’s transactional and product-driven. The new paradigm is about solving life’s problems holistically. It starts with the person, not their money, addressing their values, aspirations, and challenges, and building a financial plan to create a meaningful, sustainable life.
Q: Why are life planning and human capital development so important?
A: Life planning ensures the client’s unique goals and values take centre stage. It’s about treating the client as the focus, not their portfolio. Human capital development goes further by identifying a client’s productive potential—such as their skills, ideas, and entrepreneurial drive—and leveraging these to build future earnings and sustainable livelihoods. Together, these elements provide a comprehensive toolkit to truly transform lives.
Q: Why doesn’t traditional financial planning training include these elements?
A: Traditional training was designed for a different era—one focused on selling financial products and managing wealth for a fee. It didn’t address the broader, human-centric challenges people face today. As we move towards a more holistic approach, financial planners need new skills and tools to meet these demands.
Q: How have clients’ needs changed over time?
A: In the past, many clients—especially baby boomers—relied on advisers to make decisions for them. They grew up in a world of information asymmetry, where financial knowledge was limited to experts. Today, Gen X, Y, and Z have access to information and technology that empowers them. They want to be educated and involved in their financial decisions, not just delegate responsibility.
Q: What does this shift mean for financial advisers?
A: It’s a huge opportunity. Advisers can differentiate themselves by focusing on education, empowerment, and values-based advice. Clients are looking for partners who inspire them, provide unique insights, and help them navigate their financial journeys with confidence.
Q: What does the survey from Finimize tell us?
A: It highlights that retail investors are hungry for education and meaningful engagement. Over half value brands that educate or inspire them, and many want advice that’s aligned with their values. This shift is a clear signal for advisers to embrace a more educational and collaborative approach.
Q: Why is now the time to embrace the new paradigm?
A: The Great Wealth Transfer is already underway. Over the next two decades, $84 trillion will shift to Gen X and Millennials, who are more selective and value-driven than previous generations. Advisers who adapt to this new paradigm now can build strong, lasting relationships with the next wave of wealth holders.
Q: How can the Academy of Life Planning help financial advisers transition to this new approach?
A: The Academy offers a transformative framework for financial planners, focusing on life planning, human capital development, and holistic wealth management. We provide tools, training, and community support to help advisers align their practices with this new paradigm and truly make a difference in their clients’ lives.
Q: I’m ready to move into the new paradigm. What should I do next?
A: That’s fantastic! Reach out to the Academy of Life Planning to learn more about our services. Whether you’re looking for training, accreditation, or support in building a values-driven practice, we’re here to help you every step of the way. Let’s create a future where financial planning transforms lives, not just portfolios.
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