When Financial Planning is NOT Enough
Through the years our firm has reworked and refined our process to what we believed was an excellent package for our clients. And then I began noticing a pattern developing. Our financial plans were getting the A grade, but the clients family plans were getting the grade of C at best. What was happening? We followed all of the CFP “rules” and ChFC “procedures” but somewhere in the process there was a disconnect. And then the light bulb went off.
The analysis of their financial wealth was not enough. Our planning only addressed one dimension of their wealth. In fact, our best efforts and well thought out plans were for naught as 70% of those with good and great intentions never were able to keep together what they put together. It became clear to me that unless our clients looked at their “total” wealth – their 3 Dimensional Wealth, they would never create lives of significance.
But how does one avoid being part of the 70% whose lifetime of achievement and planning failed to yield their desired results? The answer is to do what the successful people have done.
Successful families utilized the following strategies;
1) Involvement of the entire family (including heirs and spouses).
2) Having your family reach a consensus on a long-term mission for the family wealth during the pre-transition phase.
3) Establish post-transition roles prior to the time of the estate transfer.
4) Prepare heirs for their ultimate roles by teaching practical skills.
5) Create a sense of family identity for the heirs.
The comprehensive planning process now goes beyond just the financial plan. A “3 Dimensional Wealth Plan” will include the following processes:
PHASE I— Family Vision Meeting
PHASE II— Current Financial Analysis
PHASE III— 3 Dimensional Wealth Plan Design
PHASE IV— Implementation
Your 3 Dimensional Wealth Plan will address your “total” wealth, which includes your; personal, financial, and social wealth as described in my newly released book, “3 Dimensional Wealth (www.3DWealthTheBook.org).
Advisors: If you want to help your clients achieve not just financial success but a life of significance, become a Certified 3 Dimensional Wealth Practitioner - C3DWP.
Clients: If you want to leave a legacy in all 3 dimensions of your wealth, seek out a Certified 3 Dimensional Wealth Practitioner - C3DWP.
In Summary: Financial planning is not enough and it’s up to YOU to do something about it.
posted by 3DWealth @ 10:31 PM
3 Comments:
I like the tone and content of what yoiu are saying. It sounds like you have a novel client centered approach. But...
the fact that you own a broker/dealer raises serious questions. You not only are the agent of an entity whose interests are in conflict with those of your clients (as a registered rep or broker), but you ARE that entity. How do you reconcile this?
Thanks.
In response to James Kibler, CFP, EA’s posting:
I understand your concern with the potential conflict of interest that may occur by being fee based advisors (of which we are), as well as being in a position to receive commissions through our own broker/dealer (of which we can). As you know, this combination requires full disclosure.
How do I reconcile this position? I believe that in order to be in the best position to provide clients with all of their “total wealth” solutions (including financial solutions); it is important to have advanced education with full and proper licensing to address these needs. For our firm, fee based advice and commission based products and services need not be mutually exclusive. In fact, the reason that we established our own broker/dealer (it was not to generate additional revenue!) was to insure that we would have complete independence and total objectivity, so that we could put our client’s needs before our own. It is more than just “lip service,” as we require our associates to attest to complete adherence to our “Code of Ethics.” Any violation of our core values will mandate that we terminate their affiliation.
I like that fact that you are asking the question. Does this help to make our position a possible viable business model?
Finally, I would suggest that you look more closely into the “Certified 3 Dimensional Wealth Practitioner” curriculum. As a “values based” professional, you would greatly benefit from this advanced education in counseling clients. (www.3DWealth.org).
Roey Diefendorf, CLU, ChFC, CFP, RFC, CIMA, C3DWP®
the last step...
try this one, to advise your wealth with independent wealth manager experts. try this:
http://www.bwm-financial.com
Post a Comment
Links to this post:
Create a Link
<< Home