Client Discovery: The Heart and Art of Financial Planning

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Client DiscoveryThe Heart and Art of Financial
Planning

• FPA Minnesota
• December 16, 2003
• Jonathan Guyton, CFP Michael J. Smith, CFP
• Elizabeth Jetton, CFP

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"Evolution not Revolution"
- Lew Walker
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Encouraging the Spirit of Life
George Kinder, CFP Financial Planning is the
creation of material objectives to meet personal
and spiritual goals
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The Scope of Financial Planning

• We are called upon to help people deal with the
  most powerful secular force on the planet
  MONEY.
• Dick Wagner, CFP

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Integral Financial Planning

• Not everything that can be counted, counts
• and not everything that counts can be counted.
• Albert Einstein

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Definition of Financial Planning
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Client Discovery
Client Identity
Integral Planning
Traditional Planning
Traditional Planning
Goals Fulfillment
Planning Resources
Integral Planning
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Facilitation with Full Presence

• Empathy
• Probing
• Suspension (David Boehms On Dialogue)
• Observation or Noticing
• Reflecting
• Naming
• Leading to a Place Where You YOURSELF Have Gone
• Emotional Intelligence

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Role of the Financial Planner
ADVOCATE
S T R A T E G
I S T
C O N S U L T A N T
Client Identity
CON
Goals Fulfillment
Planning Resources
ADVISOR
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Planning Skills

• Facilitation
• Strategic Thinking
• Conflict Resolution
• Visioning
• Change Management
• Scenario Planning
• Leadership

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The Financial Planning Process

• The Six Steps
• 1. Establishing and defining the client-planner
  relationship.
• The Engagement
• 2. Gathering client data, including goals.
• The Discovery Process
• 3. Analyzing and evaluating your financial
  status.
• Scenario Planning
• The Importance of Cash Flow
• Values-based Analysis

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The Financial Planning Process

• The six steps
• 4. Developing and presenting recommendations.
• Collaboration
• Choices and consequences
• 5. Implementing the recommendations.
• Coaching
• Tracking
• Making choices
• 6. Monitoring the financial planning
  recommendations.
• Ongoing Coaching
• Goals tracking Re-discovery Progress reports

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The Engagement

• Engagement Standards require you to think deeply
  about your business, to determine when you and
  your firm are at your best, and to communicate
  clearly to clients how to access the best work
  you have to offer. Having this level of clarity
  is the key to your success and happiness.
• Tracy Beckes, Business Coach

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The Discovery ProcessFinding Out What Really
Matters

• George Kinder - Seven Stages of Money Maturity
• Mitch Anthony Financial Life Planning
• Dan Sullivan - The R-Factor Question
• Bill Bachrach - Values-Based Planning (listening
  skills)
• Scott Fithian - Values-Based Estate Planning

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Seven Stages of Money Maturitywww.sevenstages.com

• 1. If you had all the money you needed,
• how would you live your life?
• 2. If you found out you had 5 years to live,
• what would you do differently?
• 3. If you found out you had 24 hours to
• live, what would you regret? What
• would be left unfinished?

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Goals Time Line
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Looking in the Mirror

• As far with our clients as weve gone ourselves.
• Our own interior issues.
• Developing new skills.
• Designing our businesses to support our
  fulfilling lives.
• Being models for our clients.

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"We are the financial planning profession, and
the world is noticeably better because we are
here."
- Bob Veres