Financial planning – what do your clients really want?
The financial services industry comes across as complicated and one that exists for people who already have money. Reality or not, that’s the perception many people have. Very few members of the public know or care about the structure of the market, or that SJP Partner Practices are not IFAs. If you’re a financial planner (SJP or otherwise), and note I didn’t use the term wealth manager, I have good news. There exists a great opportunity to stand out from the advisory crowd thanks to author, Paul D Armson.
I have recently finished reading ‘Enough?’ by Paul D Armson. The books poses the question: How much money do you need for the rest of your life? The author suggests that most people have no idea. Little wonder perhaps then why people feel they lack control or confidence when it comes to money or finances.
Is having too much money actually worse than having too little?
Don’t assume that most people are in the category of not having enough money. Armson says that while some people will run out of money before they die without financial planning help, some may pass away with too much. Imagine that, working and accumulating wealth when you could have been playing and having fun!
Fundamentally, when people know how much money is enough for them, the dynamics of financial planning changes radically. Rather than a finance professional selling pension and insurance products (and getting paid commission), a financial plan is designed around a person’s lifestyle. Hence the phrase Armson introduces: Lifestyle Financial Planning. The financial products are geared to the person/couple and the lifestyle they want, when they want it. I would call it outcome-focussed financial planning.
Lifestyle financial planning is about enabling not selling
This book provides the framework to place control for financial planning firmly in the hands of the client irrespective of whether they have:
- too much money
- too little money
- just the right amount
This is a fantastic book. It’s a brilliant reminder that life is not a rehearsal and that time speeds by faster in later life than than when we were younger. Best of all this is not an academic/technical book. It’s a quick read, is inspiring and is no-nonsense. It’s a refreshing approach and it is how I would like to receive financial planning advice were I just starting out.
Enough? How much money do you need for the rest of your life. Paul D Armson.
