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3 Elements to consider in good financial planning done well

Financial Planning is a profession. Financial Planning has evolved.  Financial Planning is complex. But GOOD Financial Planning done well is a SKILL.

Good financial planning is about integrating  the   human   element  with the technical element in building a well- rounded good financial plan.

In my previous article, I discussed the soft skills of Financial Planning. In this article, I will  discuss  3  elements,  that in my opinion and experience with my own clients are key aspects to consider if you are experiencing GOOD Financial Planning done well.

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  1. EMPATHY NOT SYMPATHY

Unless    we    have    experienced    what our clients’ dreams’, goals, transitions, trauma’s and victories are, we cannot plan a  clients’ life WELL.   We therefore need to have empathy to help us understand how to engage our clients with these experiences; there are 3 types of Empathy:

  1. Cognitive
  2. Emotional
  3. Compassionate

Financial Planners are working with clients dreams and goals, their whole lives, their spouse, their children, legacies, helping  them  navigate through transitions.   Clients put their UTMOST trust in us, they are completely vulnerable, and share intimate money stories that they wouldn’t share with anyone  else.  Clients  don’t  even  share this information with their best friends or close family, and sometimes yes, even their spouse.

Due  to  this  intimacy and  vulnerability, empathy plays  a  key  role.    It  is  a  skill to  exercise  empathy  with  clients,  and takes a lot of practice and is a concious reminder  to  STOP  engaging  with  our clients    from    our    own    structure   of interpretation. Brene Brown in her book “Dare to Lead” mentions the difference between Empathy and Sympathy: Empathy  is   feeling  WITH   your   client and   creates  connection;  Sympathy  is feeling   FOR   your   client   and   creates disconnection;

The Four Attributes of Empathy

  • To be able to see the world as others see it,
  • To be non-judgemental,
  • To understand another’s person’s feelings, and
  • To communicate the understanding of that person’s feelings.

Empathy   is   one   of   our   core   values. Having a connection, a relationship and empathy with a client does NOT however replace competency, and does not create complacency.

  1. IT’S NOT ABOUT THE POLICY AND/ OR INVESTMENT

It’s not ONLY about the numbers, the amount of cover that pays out, or what the return is on your investment. It’s about the life you want to live. It’s about mastering your money, and your money creating the life you want to live NOW and in the future. We want to help our clients’ unlock the power of lifestyle planning and make their dreams a reality.

Once the following technical elements have been taken care of, the human elements of the plan can be designed (ie: the investment or the cover to achieve the return required to live their best life)

  1. A Valid Will (both you and your spouse)
  2. An offshore will that will deal with offshore assets
  3. A balance sheet detailing all the information required to compile the various tax calculations needed for the planning exercise
  4. Information to compile a tax calculation to assess tax brackets
  5. Legal documentation that will affect your Financial Plan

 

3. WHAT MAKES YOU STICK WITH YOUR FINANCIAL PLANNER?

We  consistently  ask  ourselves  why  do our clients stay with us and why do some leave?  It is a reality in any business that you win some and you lose some. I personally believe that  if  a  client  does not  align  with  our  morals,  values  and core purpose, it will taint the relationship and/or create an issue down the line. It is important to have a discerning spirit to know who to engage with or not, and not being fearful of making that decision upfront.

One  aspect  we  do  pride  ourselves on, is that we are consistently evolving our service offering, staying ahead of the curve, and embracing change.

An analogy that I often use to explain the importance of this is: would you consult a doctor who qualified 20 years ago, and didn’t ever study again, and didn’t keep up with the latest developments and embraced change? The same goes for choosing a Financial Planner. An FP is dealing with your livelihood – you owe it to you and your family. To find a qualified FP, go to www.fpi.co.za.

 

What our clients say:

“Mel is  more than our advisor; she has certainly become a trusted friend. We can always count on her to put forward the solutions that  make  the  most  financial sense,    which    makes    us     incredibly comfortable when thinking of the future. She’s also challenged us to think smarter when it  comes to our spending habits, something we all need some guidance on from time to time.” BC

 

Contact Melony for an analysis. Fees charged according to complexity of planning.

Tel: 031-2078514 | Fax: 031-2078249

Office Cell: 083 435 2927

www.mvestfinance.co.za

55 Gladys Mazibuko Road, Essenwood.

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