Is Life Planning the New Direction for Independent Financial Advisers?

By: Priyanka Boghani
12-May-2010

What is Financial Life Planning?

Financial Life Planning is an approach to investing and a strategy that covers everything from health care, taxes, insurance to family legacy. "You can't deal or manage money unless you know where you're going with your life and similarly you can't change your life without addressing your finances. Money and life interlink," said Jeremy Deedes, director of the Yorkshire-based Planning for Life Ltd.

"Everyone who deals with money is under the spotlight right now" writes Philip Calvert, founder of the Financial Adviser social networking site IFA Life, "and that's where Financial Life Planning comes in". He acknowledges the fact that life planning has been offered for years now however stresses that those IFAs who offer it now hold a competitive advantage and describes Financial Life Planning as "the most significant opportunity the financial advice industry has even seen."

How could you benefit from Life Planning?

According to the Kinder Institute of Life Planning, those on a Life Planning scheme report:

*  A significantly reduced workload
*  Increased income (Life Planners are in the top 2% of earners in the profession)
*  Greater profitability from your earnings and investments
*  More time available for your family and hobbies
*  More time to develop new income streams from your expertise

What is an Independent Financial Adviser?

As Independent Financial Adviser helps you understand and meet financial objectives in areas such as pensions, investments and savings. Through making use of their experience with a range of financial products and keeping abreast of changes to markets, the IFA is able to match financial options with the specific needs of their clients. Also, IFAs can help you to handle your financial portfolios should life-changing events occur, such as marriage, divorce, parenthood or a change of employer or business.

What are the key skills for a financial life planner?

According to Deedes, a life planner needs to:

*  have the ability to listen empathically and understand the client's circumstances and goals
*  help the client work out for themselves what they want to do whilst leading them through the process of life planning
*  carry the responsibility of being there for the client when life gets difficult or changes its course