Financial Planning Help. Why no one is asking for it?

facebooktwitterlinkedinby featherAccording to a 2013 Financial Literacy Survey, 2 out 5 adults would give themselves a C-D or F  on their knowledge of personal finance.

Clearly, people need the help of Financial Advisors.

Why aren’t people asking for financial planning help? They don’t know how financial planning can help them because they don’t know what financial planning is.

Why aren’t most advisors promoting financial planning? Same reason…

The CFP board defines financial planning as-

“A process of determining whether and how an individual can meet life goals through the proper management of financial resources.”

With only 8% of the population  actually achieving their goals, the word goal  is enough to scare off the crowd right out of the gate.

I propose a new definition.

“A conversation designed to help individuals organize and understand their financial life, necessary to make sound money decisions.”

Financial Planing starts with the conversation. Asking the right questions, at the right time. It’s what fuels the advisor/client relationship.

While financial planning software has no problems spitting out dozens of pages filled with numbers, tables, projections and charts, I think it’s a mistake leading with the printed plan before the planning conversation.

Just like the printed musical score is not music, the printed financial plan is not financial planning.

More to follow…

Your thoughts?

 

 

Written by Jaimie Blackman

Jaimie Blackman

Jaimie Blackman has created Sound Financial Decisions ™ powered by MoneyCapsules®, to help guide business owners through the complexities of succession planning.

Jaimie writes “Smart Succession”, a monthly column in Music Inc., and also writes a bimonthly column for Canadian Music Trades magazine. He has spoken at NAMM U Idea Center, and at Yamah’s Succession Advantage.

As a financial literacy educator he has taught at New York University and has lectured at the 92nd Street Y, Marymount Manhattan College, and CUNY.

As President of BH Wealth Management, Jaimie also helps his clients implement investment and insurance solutions which are aligned to their personal values. Visit bhwealth.com to learn more.

To subscribe to Jaimie’s Succession Success: Insights for Music Retailers, visit moneycapsules.com.

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