The role of Generic Independent Financial Advisers (GenIFAs) extends beyond numbers—it’s about empowering clients to achieve financial security and prosperity. Recent studies on income inequality and human capital offer invaluable insights that GenIFAs can use to create meaningful impact.
The Core Message: Education as the Great Equaliser
Research consistently highlights education’s transformative power in reducing income inequality. Primary education has the strongest impact, but secondary and tertiary education also play significant roles. Government investment in education amplifies these effects, fostering opportunities and narrowing wealth disparities.
For GenIFAs, these findings underline a critical point: education isn’t just an expense—it’s a strategic investment in a better future.
Actionable Insights for GenIFAs
- Advocate for Education Savings
- Help clients prioritise savings plans for children’s education, especially for primary and secondary schooling.
- Highlight education’s long-term benefits, not just for income potential but for overall family stability.
- Promote Skill Development
- Encourage clients to invest in vocational training or higher education to enhance employability and income.
- Share resources about grants, scholarships, or accessible learning opportunities.
- Incorporate Human Capital Metrics
- Evaluate clients’ long-term goals by including education and skills as financial assets in planning models.
- Use tools that measure the return on investment for education and skill-building initiatives.
Broader Lessons for Client Engagement
The studies also reveal the importance of globalisation and demographic changes. As economies open up and evolve, GenIFAs can guide clients to:
- Adapt to a globalised economy: Suggest investments in industries that align with international trends.
- Plan for demographic shifts: Address challenges such as rising dependency ratios by building robust retirement and healthcare plans.
GenIFAs: Architects of Change
Financial advice isn’t just about achieving wealth—it’s about fostering equity and opportunities. By integrating these lessons, GenIFAs can redefine financial planning as a tool for social and economic transformation.
Let’s use our expertise to illuminate the path to a brighter, more equitable future for our clients and their communities. Together, we can make financial planning a force for good.
If you’d like to discuss how these insights can shape your financial practice, let’s connect. It’s time to redefine what it means to plan for success.
Financial Activation Tools and Measures
Investing in education and skill development is a powerful step toward personal and professional growth. To ensure these investments are truly beneficial, it’s important to assess their effectiveness.
See London Business School’s Human Capital Asset Diagnostic Tool.
Several user-friendly tools and methods can help you measure the return on investment (ROI) for educational and skill-building initiatives.
1. Basic ROI Formula
A straightforward way to evaluate the financial return of a training program is by using the basic ROI formula:
ROI (%) = [(Gain from Learning – Cost of Learning) / Cost of Learning] x 100
This calculation helps determine the efficiency and effectiveness of the training program in producing positive returns compared to the initial investment.
2. Kirkpatrick’s Four Levels of Evaluation
This widely recognised model assesses training effectiveness on four levels:
- Reaction: Participants’ immediate response to the training.
- Learning: The knowledge or skills acquired.
- Behaviour: Application of the new skills in the workplace.
- Results: The overall impact on organisational goals.
By evaluating these levels, you can gain a comprehensive understanding of a program’s effectiveness.
3. Phillips ROI Model
An extension of Kirkpatrick’s model, the Phillips ROI Model adds a fifth level that focuses specifically on ROI.
It involves:
- Measuring the monetary benefits of training.
- Comparing these benefits to the costs.
This approach provides a clear picture of the financial impact of training initiatives.
4. Cost-Benefit Analysis (CBA)
CBA compares the total expected costs of a training program with its total expected benefits, both quantitative and qualitative.
This method helps determine whether the benefits outweigh the costs, guiding informed decision-making.
5. Learning Management Systems (LMS) Analytics
Modern LMS platforms offer built-in analytics to track learner progress, engagement, and performance. See the Academy of Life Plannoing’s MoneyFitt LMS platform, available for GenIFAs for just £2.99/ month.
These insights can be invaluable in assessing the effectiveness of training programs and their impact on performance.
6. Surveys and Feedback Tools
Collecting feedback through surveys before and after training sessions can provide qualitative data on participant satisfaction and perceived value. See Planning My Life’s Financial Activation Measure.
This information is crucial for understanding the immediate impact of the training.
7. Performance Metrics
Tracking key performance indicators (KPIs) such as productivity levels, error rates, and employee retention before and after training can offer quantitative data to assess ROI.
This approach links training outcomes directly to business objectives.
By utilising these tools and methods, you can effectively measure the ROI of education and skill-building initiatives, ensuring that your investments lead to meaningful and measurable outcomes.
Academy of Life Planning 