Why would you go to a financial perspective rather than a financial advisor?

Something More Than Financial Advice

Earlier this year and shortly before I gave the Financial Services Authority permission to provide financial advice, I met Bruce and Theresa, longing my clients for thirty years. The meeting was made to say goodbye to and close their professional (but not social) relationships and to finish their plans for their retirement.

The meeting lent most of the time and while their finances were on schedule and had to deal with a lot of the meeting as to how they should live in retirement, what they could and should do, how they were going to maintain family relationships, decisions about his house and almost all aspects of life in retirement. We also discuss their relationship with money, especially with how to change their attitude to save and take care to find courage to spend their time and money to make the most of their life in retirement. While I could show mathematically that their income and assets were more than enough to allow them to survive life in retirement, we had to deal with some profound emotional spending blocks, especially fearing they would spend money.

This was far more than financial advice. It attracted to & # 39; financial life training ", a relatively new discipline about money and life that intertwines and is truly holistic in its approach. It's an approach that I began to adopt in 2006 after training at Kinder Institute of Life Planning in the United States. In truth, most people My customer invasion has been a holistic training program. I've found that the training unit is much more valuable for my clients than organizing financial products that should be simple, low and cost-free within the budget.

Financial Training is for everyone?

I've witnessed a lot of changes that lifetime training can have on clients and I would appeal that everyone needs to practice. In fact, the service is not suited to what Ross Honeywill and Christopher Norton call " Traditionals & # 39; and more like what they call & New Economic Order & # 39; (NEO) (Honeywill, Ross and Norton, Christopher (2012.) One hundred and thirteen million markets of one . Fingerprinting.), And what James Alexander and late Robert Duvall in his studies to start Zopa the first lending company) called "Freeformers" and "Digital Thought Leaders: Robert Duvall, issued by Digital Strategy Consulting."

Two Types of Consumer

These distinctions are important in relation to Key terms for money that I will cover in the short term. First, consider the differences between the groups. Honeywell and Norton describe "Traditionals & # 39; who primarily interested in the contract, shape and position. A subgroup of "Traditionals" is a celebration and # 39; for which rank is the highest priority. They mention Donald Trump as the Tradition of the Traditional.

Honeywill and Norton Contrast & Traditions with NEOs. According to the authors, NEOs purchase reliability, origin, uniqueness and discovery. They are more likely to start their own business, usually graduated, see the internet as a powerful tool to simplify their lives, understand investment (money and personal) and are mislead with prominent consumption. They are very individuals and express their own values ​​by what they say, buy, do and who they do.

Honeywill and Norton discovered NEOs in the United States and wrote about them in 2012, but Robert Duvall and James Alexander came on similar an idea in the UK in the early 2000s. In his studies before Zopa began, Duvall and Alexander pointed to a group of people whom they called "Free formers ", a new brand of consumers and # 39; defined by their value and opinions, chosen as they do, where they spend their money. They refuse to be defined by someone, they do not trust companies or the state. They value reliability in what they buy and they want to lead a "real" life. & # 39; Duvall and Alexander saw these people as the core of information technology based on self-esteem, choice, freedom and individualism.

Two Attitudes for Money

In my own career as a financial advisor, organizer and trainer, I have identified two promising value for money. There are those who see money that ends in themselves, and those who see money as a way to end. I can not admit that I have researched detailed research on this, but I have seen enough to make a reasonable assumption, especially the tradition of seeing money that ends in itself, and it's freeformers who see money as a way to end. (With the risk of eradicating Honeywill and Norton and Hughes and aware that NEOs and Freeformers are not exactly the same, I will refer to both simply as Freeformers in the rest of this article, which I think the word is better and more pronounced description of species a NEOs.)

In very general terms, traditions are meant to make their money as far as possible by getting the best deals and features. Psychologically, they equal money with self and status. However, Freeformers uses their money to achieve their individuality and reliability and express their value. Although they do not completely delete irresponsible costs, their spending criteria are written in terms of reliability, origin, design, specificity and discovery.

Mapping Attitudes for Life and Money

In my own experience, opinion on financial advice, but not budget or training, but Freeformers only starts evaluating financial advice when an individual supports it and a unique life and The budget born of deep training and planning.

To put it differently, Freeformers understand that the relationship between life and money goes deep, so respond well to training that deals with life and money. Traditions, however, do not have such a great link between life and money and are more likely to respond to the concept of financial training. & # 39; Traditions are key markets for financial institutions and packaged products, especially those offering offers (discounts / competition fees), features (flexibility plans, for example) and position (high risk, high yield). Freeformers are more likely to choose a platform (online service to collect all their investments and tax packaging) and focus on choosing investments to suit their value and goals.

Personal Finance Help Center

In the UK and other parts of the world, you can now find many different types of personal finance help. There is a wide spectrum of financial advice in the other end and financial training on the other. Between, families and individuals can access the budget, guidance, training, guidance and education. Of course, there are none of these contractual and some companies or organizations will provide a combination so it is important to understand what is available and the limits and benefits of each one.

Financial Advisory

Financial advice is a product. In the UK, the Financial Supervisory Authority (FCA), which manages personal financial advice, defines financial advice that allows to purchase, sell or replace financial production. Although rules are necessary to & # 39; know your customer & # 39; and ensure that the council is suitable, is the stress of financial advisory sales of products.

The Financial Supervisory Authority shall be authorized by the FCA and follow its rules.


Budget goes beyond financial advice. It aims to check the client's short, medium and long term financial goals and develop a plan to meet them. The plan should be comprehensive and holistic. It should cover all aspects of the client's personal and family finances, and recommendations in any part of the program should maintain the integrity of the program as a whole.

The Financial Steering Committee (which sets standards for an internationally recognized budget) defines six stages of the budget process:

  1. Establish and define business relationships
  2. Collect customer information [19659026] Analyze and evaluate the client's financial position
  3. Develop budget proposals and introduce them Customer
  4. Make Budget Suggestions
  5. Review Customer Relationship

While one of the practices in Step 2 is to "know the personal and financial goals of the client, needs and priorities," the process is primarily about finance rather than life .

Certified CFOs must also be authorized to provide financial advisory services to the regulator in the country in which they operate.

[FinancialPlanningStandardsBoard:FinancialPlanningPracticeStandardsAvailableat https://www.fpsb.org/standards-for-the-profession/framework/ )

Financial Planning

We are starting to see various other styles here. Maybe, George Kinder and Preschool lead the area and Kinder has developed EVOKE five levels of financial planning (or simply a "life plan" process that consists of:

  1. Survey: Getting to Know the Client in the Deepest Perspective
  2. Vision: Working towards goals, goals, projects, etc.
  3. Obstacles: Addressing practical, emotional and financial barriers that prevent the client from gaining his vision.
  4. Knowledge: Providing Internal and External Knowledge to Achieve Customer Purposes
  5. Implementation: Training of the Client in Implementing the Program

(Kinder, George and Galvan, Susan. Description of the Torch: The Kinder Method of Life Planning FPA Press 2006)

There are two important distinctions between the budget and the life plan: life planning takes the starting point of life rather than its money and life plan contains m an important middle class in dealing with obstacles, which are absent in the financial planning process.

Life counselors are usually (but need not be) approved financial advisory services.

Financial Education

Financial education is generally poor, with a growing number of organizations and institutions in the UK specializing in improving financial education. The British government has attempted to do this through the monetary policy service (www.moneyadviceservice.org.uk/en), and in 2014 financial education education became part of the National Curriculum Guide in England and should be mandatory for all schools, such as timeframes (Long, Robert and Foster, Financial Supervision Financial Supervision

Financial Education is not financial advice or planning and need not be provided by a financial advisor or organizer.

The Financial Supervisory Authority is a reliable new concept which the Financial Supervisory Authority attaches importance to the review of the financial undertaking (HM Treasury and Finance. Financial Supervisory Authority Market Report Final Report, March 2016), which defines any kind of help granted to consumers who are not financially controlled Advice. FCA sees instructions & # 39; As a way to address barriers to consumer access to consultants, three key barriers are accessible, accessibility and the threat of obligations and consumer legislation to consultants.

FCA describes a number of options, including basic advice, simplified advice, optimizing advice, general and general recommendations and guidelines. Some of these are required, others do not.

Financial Training

Does not appear to be a defined definition of financial management / financial management. The International Federation's definition of training is:

Collaborating with customers in a thinking and creative process that encourages them to maximize their personal and professional opportunities.

My own definition of financial training is:

Finance training is a way to help customers move from what they now have to a better personal and financial position as defined by their attitudes, attitudes, value, behavior, actions and relationship with money.

Personally, I have long believed that you can not help people get a better personal position without coping with their finances and people can not save their finances without having a clear idea of ​​their capital Use in short, medium and long term. I know I'm not alone in this opinion. Having talked to psychiatrists and counselors about my work, I have often been blessed with hobbies, as their clients have so often been scandalized in financial matters.

In fact, it is possible and desirable to organize personal finances so that they support and enforce the personal goals, values ​​and interests of the home. But this consequence needs to understand what these goals, values ​​and interests are.

This definition states that the process is holistic in the hottest sense of the word, which deals with our thoughts, feelings and actions, dealing with brain and left brain, and working in the entire field of the client. It also does not deal with money in itself, but with our relationship with money. It is our relationship with money that defines how we use it, not how much we have or do not have.

Lynn Twist, an international activist committed to reducing poverty and hunger and promoting social justice, describes how the Achuar people, the indigenous group of people from the Amazon rainforests, lived without money for thousands of years (Twist, Lynn (2003) )). Soul Money: Restoring the resources of our inner resources ( WW Norton, New York). Not only live but flourished in social currency reciprocity rather than financial fund money.

I think we must be careful here and do not confuse better with "more". Thinking leaders like Lynn Twist and Brené Brown face the lack of money (time / sleep / leisure / work / kudos / friends, etc.). Better From moral and moral points of view, we all have everybody the responsibility to do better not only your own life but the lives of others. However, it is very different from wanting more of all, simply because of wanting more, especially insufficient to be connected to our peers.

I actually see financial training as a process that helps people deal with the problem by helping them to drop their own excessive demand for what they think is lacking trying to increase the availability of the product in the first place.

Others will say trying to better "Our life is a pointless exercise, that we should only accept our circumstances as it is. Trying to lead a better life takes energy, is tiring and requires so much emphasis on goals or goals we decide to be aware of the larger (and probably deepening) environment around us.

Demand for Financial Training

I built my business, Planning for Life, behind the demand for advice that went far beyond the financial advice as defined in the FCA. Neither I nor my clients called it "financial training". We did not even understand the term achieved, but that was what I did.

Where did this demand come from and is it still? I would argue more than ever, for many reasons.

Life is s ** t

I really do not believe this and not most. However, they admit that the more the planet is broken, the greater the suffering of individuals feel inside leadership and life manager Danielle Marchant puts it out when he expresses the 2016 ICF Training Study (International Coaching Federation 2016 Training Executive Executive Summary available at http: // www.coachfederation.org ). This study suggests that there are now 65,000 people working globally as professional coaches or with training in leadership or leadership role. The suffering, Danielle, explains that fulfilling demands for less organized forms of help than saying, skills development or financial advice. It creates the demand for someone else to talk to, being challenged, thinking about ideas, being responsible for finding meaning in life. In particular, there is a demand for help to overcome practical, emotional, professional and financial barriers in a better life.

Response to barter

Honeywill and Norton discuss this in length. They argue that the demand of innovation companies for more genuine, genuine, individual life is a common response to product development co-ordination. Why is this important? First, because in very globalized parts of the world it is difficult to actually live the NEO or Freeformer lifestyle and there is growing demand for help in achieving this. It's not just about money, it's all lifestyle issues and if individuals are not achieving a desired lifestyle, they will seek appropriate help to get there in the form of lifelong learning and, as appropriate, financial training.

Secondly, if you hate commoditisitis, you probably hate traditional financial services and look for a unique, genuine and very personal form of help that financial management can provide. You must also seek help from a similar person who shares your expectations and values ​​and probably has – and is willing to admit you have gone through life and down to life. You must seek help from someone whose knowledge and results are established more on their own lifestyle than on their technical knowledge.

The search for meaning

In western economies, many people have reached the peak of Maslow's assertion needs – self-confidence. Their physiological and safety needs are met by buying basic products. Their needs for love and belonging are met with relationships and trademarks. Their need for respect is fulfilled in their work or profession. What's left? The search for automation or meaning and compassion as commentators like Professor Rowland Smith and Bernadette Jiwa put it.

Maximizing your potential or doing the best you can is a little more complicated than building a portfolio and coming down to answer questions like & # 39; Why am I here? & # 39 ;, & # 39; Who am I? & # 39 ;, & # 39; What is my purpose and relationship worldwide? & # 39;. Identifying gaps and filling them is a wealth of content to work with a coach and is an overly key leader in training demand.


Financial training has a wider scope than financial advice. Brendan Llewellyn, a British commentary on financial services, recently wrote about how for people, money concerns income, spending, borrowing and savings. He continues to say that, despite the fact that financial activity focuses on the last two, "revenue and expenditure" are the most important parameters. & # 39; Llewellyn continues to talk about the need for a new type of financial adviser, adviser or mentor who would help people increase their earnings, look at personal development and retraining, seek new job opportunities, analyze and improve spending.

The focus of our intervention should be on where the customer needs real help, sometimes balance of work / income and living / spending equals. In recent years, another factor has been added to this: sustainability. Particularly Freeformers are environmentally friendly and want to live sustainably. Traditional financial services focus on investments and borrowing when people need help managing their cash flow, spending better and making it sustainable, which is clearly the role of financial training.

Make a distinction between life and money

It seems to me that over the last 30 years, financial services have become left brain, designed and manufactured. This has led to a constant separation of life and money and a shift in emphasis on the term money that ends in itself, rather than end to end. Large financial ads are based on the returns and efforts of investment teams to look as an outstanding fund in the sector is fabulous.

High early submission and replacement rates indicate that financial products tend to be selected in the short term of their performance rather than long-term qualifications in a life plan.

But people have begun to see through this and I was often pleased with how many of my customers thank their collections about being organized around what we think Cascade recognizes the pros and cons of the main asset classes and the allocation of money between them as based on customers, short, medium and long time requires money, rather than for maximum yield (which, of course, takes maximum risk).

As long as traditional financial services continue to be attributed to growth and return, it will not be linked to life again. However, financial management, which strives to combine life and money and build a working personal relationship with money, can do a lot to resolve this divorce.

Dealing With Obstacles

Traditional financial services and even a certified budget do not address barriers to achieving customer goals or seeking a lifestyle. We only need to look at our own lives to see that our struggle is usually about dealing with practical, emotional, professional and financial barriers to achieving a better life. Financial training can fill this gap.

A Natural Extension

The idea of ​​training is becoming a familiar home and business traveler. After all, we hire coaches in many areas today, including leadership, business, sports, health and life. Handling personal finance is no less demanding than, for example, being in shape or building a business and lending itself to training. Actually, my customers came for this reason, even though they did not recognize or understand that it was financial training rather than the financial advice they bought.

Not Listening

It was previously said that the average length of the period between consultant / customer meeting and the counselor who started selling financial products was ninety seconds. Whatever the truth, I do not know. However, I know that individuals obscure financial advice because they do not want to sell too much. What they want is someone listening to them and consulting them objectively and independently.

I have often seen couples who are not saying words, just listening to them talking to me and each other in a safe and safe environment. In the end, they often had to thank me and talk about how the twelve years of marriage they never had such a deep and meaningful conversation.

People want to be heard to tell their stories to someone ready to listen and help them understand the meaning of these stories.

Financial Controller Before Financial Advisor

Financial products such as savings, loans, mortgages, pensions and investments are an important part of the family budget and formally belong to the expertise provided by financial advisors. So why would you go to a financial teacher first? Here are a few reasons:

  • The scope of financial training is much broader than financial advice; It's all about getting your life right and building a good framework for financial products.
  • In spite of the financial advertising that tells you that bank account or other financial product is the way to freedom, it's a deep inner journey of life and money that financial training will take you on It is the true source of freedom
  • Training will provide you with new ideas and new views on life; You must motivate obstacles and gratitude for different situations before committing financial products
  • You must be able to make informed decisions about your life and money and reduce the likelihood of serious mistakes.
  • Current standards and obligations You'll Be Challenged [19659026] 19659026] You Must Be Responsible To Others Than You
  • You must build a life based on a deep survey and a statement of your most important values ​​
  • You will have the opportunity to explore how you can to use your money to express humanity and your ideals, how to make a contribution & # 39; your primary driving force instead of & nbsp; consumption & # 39;
  • Your relationship will be based on trust, reliability and collaboration; You will need to build a support team to help you on your way
  • Coach will provide you with a very personal service, especially when compared to the upcoming selection of help
  • You will develop a financial framework that supports your life goals that you can either fill capital goods yourself or used as a support for financial advisor to do the work for you
  • Life becomes simpler, different and under control and you will be financially well organized


By coincidence, I feel like finishing This article is on Black Friday, November 25, 2016, the day after the Thanksgiving Day in the United States. Printing, television and online media take place with ads and incentives to go out today and buy, buy, buy. I do not doubt that savings accounts and investment port will fly, credit cards and overdrafts will be pushed to the limit and what? The chances are that much of the material purchased today will be used once and then placed behind the closet or attic. By the time we have reached through Christmas and New Year and into many months in January, many people will suffer from financial timberhood.

This is not about money. It's about our relationship with money, our attitude to life and our deepest hopes and fears about our lives. But this can be direct and with guidelines and training that can be changed to ensure that people can live more fulfilled lives in the knowledge that they are the champions of their money and not vice versa. Get a grip on life and financial relationship first, go to a financial advisor with a clear plan and support your money.


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