Financial planning

by Oct 1, 2017Financial Planning, Resources

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Financial planning and life coaching both have blind spots.
Combining the two delivers a powerful transformational approach to our lives and money.

At Living Money we have merged life coaching and financial planning. Why do we think this is necessary?

The Certified Financial Planner Board (the authority when it comes to regulating financial planning) defines financial planning as;

The process of determining whether and how an individual can meet life goals through the proper management of financial resources.’

The Board goes on to state the importance of the planner ‘determining a client’s personal and financial goals, needs and priorities’.

Financial planning fault lines

And this is where we come, in my view, to financial planning’s fault line because financial planning is an incomplete solution.

Yes, the client’s personal and financial goals, needs and priorities are important. However, the Board’s practice standards give little guidance on how that is to be achieved. And note in passing the wording: the planner is the one who determines the client’s needs, not the client. Furthermore, if you delve deeper into the CFP Board’s practice standards you will find that the emphasis remains firmly in the financial arena.

Determining a client’s personal goals is no easy task even for the client, let alone for the planner. Most of us have a very hazy idea of our ‘life goals’ and its no easy task to express them in the concise manner that the CFP Board expects of its practitioners. Nor does the Board include anything about dealing with the obstacles to achieving goals (many of which may be financial). These are more the realm of the life coach.

Financial life planning

Financial planning and life coaching are both good in their own way. However, by combining the two into financial life planning, using each to address the weakness of the other, treating money as a means to our life goals, then we have something that is powerfully transformational and not just transactional.

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