The Goals Based Advice phenomenon.
I have really gotten into some podcasts over the last 12 months. They are an easy way to take in content on a whole range of different topics. Obviously, I listen to financial planning podcasts as well as related topics such as property, sport and comedy. These are all topics that I am interested in.
One podcast I listen to is called, Goals Based Advice and is presented by Fraser Jack who has experience in Financial Planning. He has a weekly episode and he interviews many financial planners predominately who are building and growing their businesses. I like to have an ear to the ground on what trends are happening in the financial world.
The concept of goals based advice rings true to me as a concept because even after 20 years, I can't believe that their is any other way that advice incorporating wealth management and financial planning can be implemented. Without being critical of the interviewees, it seems like some financial planners have stumbled upon this concept as a new phenomenon. It really has been around since endowment plans and nil entry / exit fee commission products.
Financial advice really is a simple process in my mind.
- Consider what goals you have as an individual or family.
- Change the financial behaviours to improve your chances of success.
- Direct cashflow to assets that will have a chance of compounding greater than the inflation rate.
- Protect it with suitable levels of insurance cover.
- Enjoy a retirement whereby you never have to worry about money again.
- Create an estate plan that supports your family for generations.
I believe that many businesses in our industry make financial planning concepts much more complicated than they need to be. By creating complexity, they can then confuse prospective clients and create a sense of concern. If clients get the foundations of their financial lives sorted, then they can live the life they design because the shackles have been lifted and the sense of certainty and confidence is gained which frees up headspace to live properly. That's how I think about goals based financial planning in particular. I think we can make financial planning concepts simpler and then in turn build trust and then in turn assist more people and create businesses focussed on family's living their ideal lives.
In my next post, I am going to discuss what the real 5 financial goals in life are. I got these from my reading of Nick Murray and not one of these relates to having 12 months sabbatical or funding a trip to Bali. Speak soon.
Here's the links to some of the podcasts I listen to.
