A person’s finances are intertwined with most other aspects of their life, and the interaction can get complicated.
While it is important to save for emergencies, retirement, and insurance, it is equally vital to live a fulfilling life.
Fortunately, there are advisors who can help clients keep their life goals in mind with financial life planning. Below are several crucial things to know about striking a balance with Life Planning vs. Financial Planning.
Many people believe financial life planners are also therapists. While the planning process focuses on uncovering the causes of a person’s poor financial choices, the client does not receive psychological treatment. However, acquiring better money management habits can be therapeutic for some.
Planning a financial life requires the client to examine his or her life goals. From there, the planner and client can work to align those goals in a positive way.
The process can take on some life coaching aspects as it helps clients uncover their financial challenges and live the best life possible.
There’s no standard certification, but formal training can help a planner serve clients effectively. If a client needs help, they should work with a licensed financial planner who is also trained in financial life planning and longterm wealth creation.
Once a client finds a trustworthy planner, they can ask questions about their training during the initial interview.
When clients explore their values, fears, goals, and desires, they may react emotionally. However, it’s all part of the process.
Advisors should help clients learn how to connect money with other parts of life, and clients should realise the relationship can be chaotic at times. When both sides know what to expect, the process of financial life planning can be greatly simplified.
Effective financial and life planning helps the client balance these separate, but equally important, parts of life. It’s the planner’s job to advise, help, and support clients through the process.
Effective planning requires empathy, intelligence, and patience, but balancing Life Planning vs. Financial Planning can be meaningful for everyone involved.
Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant for over 36 years, a Financial Planner for over 18 years and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading), and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, IPA & NTAA.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
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