Can financial planning bring the ‘wow’ factor? I certainly hope so

I’ve learned something important over the years when talking to people about their finances. There’s no surer way to lose someone’s interest than by making it all about products.

“What’s the rate of return?”

“What’s the most tax-efficient fund wrapper to go for?”

These questions don’t keep people awake at night.

But wondering whether you’ll be financially secure does.

Likewise, people don’t go to bed dreaming about ETFs, investment trusts and keeping their ISAs topped up.

But they might dream about their perfect retirement.

Sometimes advisers aren’t focused enough on you and what you want to do with your life, and too much time obsessing over the tools that get you where you want to go.

In my opinion, if it’s done right, financial planning should inspire. It should even have a bit of a ‘wow’ factor. Because the conversations we have are about your future. And that should be at least a bit exciting.

Financial planner or ‘escape artist’?

Tell someone you’re a financial adviser at a dinner party and they might expect a fund tip, or that you’re about to sell them something. It’s a job that elicits few follow-up questions and usually results in them turning to talk to the person next to them instead.

Paul Armson, a financial adviser who’s written books on his brand of ‘lifestyle financial planning,’ has an interesting way of looking at this.

As he puts it, don’t tell someone at a dinner party that you’re a financial adviser. They’re likely to switch off, or even leave the room. Instead, he says he’s “an escape artist”.

How so? He helps people escape their jobs, so they can retire.

Now, that’s not dull at all.

I’ve tried this myself, at a Chamber of Commerce meeting. It did the trick, everyone stopped to listen. The reason it’s effective (apart from making people imagine you as the next David Blaine!) is that it gets to the nub of what you’re trying to do.

Talking about lifestyle financial planning gets about what you want to do, not just how much money you need to earn.

“I want to know I’ve got enough”

One question I make a point of asking now when I’m doing my initial fact find with clients, is “What’s your one over-arching financial objective?”

Boiling it down to just one thing, really makes them think about what’s important.

For some it’s a comfortable retirement or taking time out to travel the world. For others it’s putting their kids through university.

When it comes to the money side of things, the usual answer is “I want to know I’ve got enough.” The money gets us where we want – but it’s not the be all and end all.

A reminder: you don’t need a product, you need a plan

So, can financial planning make you say “wow”?

If the conversations you have with your financial adviser goes something like “Can I top up my ISA?,” then probably not. But that’s not planning, it’s more like a sales transaction.

But if your adviser makes you think about the possibilities that lie ahead and the plan to get there. That’s an emphatic yes. If you can come out of your meeting excited about the next steps, that’s a big wow.

*Extra! Some things in life are free

Want to know more about how much enough is? Then you’re in luck.

I’m giving away some free copies of Paul Armson’s book Enough?: How Much Money Do You Need For The Rest of Your Life?

Some clients will have already heard me talk about this book. I frequently recommend it to friends and clients who are planning for their future and confused, or even a bit overwhelmed, by what they should (and shouldn’t) be focusing on.

It’s a great read and stands for a lot of what I believe in, making planning readily accessible without the use of lots of heavy jargon. It helps people understand their needs and how to get the best out of financial planning.

Get in touch with me if you’d like a copy.