Every person has financial goals and objectives. Sometimes it is difficult to priorities which aspects are most important. The term life planning comes from the United States and refers to the concept of holistic financial planning. This is where the clients overall financial situation and objectives are taken into account as opposed to just one aspect. The aim is to get an in depth perspective of the needs from a clients perspective.
Holistic financial planning has been around for a number of years , however technology has helped ifa’s develop complex strategies to help clients understand their current financial situation, whilst putting together a plan to help for the future.
For the plan to be valuable the client’s current financial situation should take into account and savings, debt, income, expenditure, attitude to risk as wel as their future plans. A snapshot of their current situation is then produced and used as a starting point to adapt the plan accordingly.
A review of the plan should be carried out on a regular basis, ideally every two or three years. This will help maintain the plan and keep it on track. There is no point carrying out an analysis and not reviewing its progress. The review period should be agreed between the client and the adviser.
Personal experience has confirmed to me that clients benefit from this service. It helps clients understand their current and future financial situation. IFA’s that are not already offering a holistic financial planning approach to clients, should consider adapting their business model to offer the service.
However many IFA’s are not yet convinced of the benefits of this service. Many consider the process too complex or un-necessary. The RDR and also the FSA will require advisers to change the way they advise clients. I believe that more and more clients will ask for this service once they become aware of it.
Clients will increasingly ask for a more inclusive holistic financial plan to suit the needs. IFA’s should ensure that they have the skills and tools to achieve this.
Life planning is an excellent service that is offered by a limited no. of Uk financial advisors. If you would like to find out more info then please visit Consilium Asset Management’s website for more info information. They are financial advisors in Chipping Sodbury.