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  • 1. Life Planning and the Future of Financial Planning George Kinder CFP ® , RLP ® Kinder Institute of Life Planning
  • 2. Throw away the script! This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 3. The Three Movements <ul><li>Professional Designation - CFP ® , Chartered Financial Planner among others </li></ul><ul><li>Sales to Service, Commissions to Fees </li></ul><ul><li>Life Planning </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 4. What is Life Planning? This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved . To the client: The Art of Conversation leading to what they’ve always wanted To the business: A Structured Client Interview Process with measureable deliverables
  • 5. What Life Planning Delivers <ul><li>To the client: </li></ul><ul><li>Much greater satisfaction in life: </li></ul><ul><li>“ What the client really wants” </li></ul><ul><li>To the business: </li></ul><ul><li>Greater success </li></ul><ul><ul><li>Reputation and brand </li></ul></ul><ul><ul><li>Efficiency and profitability </li></ul></ul><ul><ul><li>Valuation </li></ul></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved . <ul><ul><li>Secure and stable client base </li></ul></ul><ul><ul><li>Rapid growth </li></ul></ul>
  • 6. Changing Role of Advisors <ul><li>Only 75% of the work financial planners perform for clients involves financial issues. </li></ul><ul><li>“ The other 25% of the work involves dealing with non-financial issues – human drama and frailties.” </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved . Source: Dubofsky &amp; Sussman, Journal of Financial Planing Aug 2009
  • 7. Changing Role of Advisors <ul><li>74% experienced a session in which a client became emotionally distraught </li></ul><ul><li>58% have been told a (non-financial) secret that no other person knows </li></ul><ul><li>48% have mediated marital discord </li></ul><ul><li>10% have had discussions with clients about suicide </li></ul>Source: Dubofsky &amp; Sussman, Journal of Financial Planing Aug 2009
  • 8. The 3 Essential Relationship Skills for Life Planning <ul><li>Listening (silent, body language and gutturals) </li></ul><ul><li>Empathy (verbal and non) </li></ul><ul><li>Inspiration (optimism, excitement, energy, enthusiasm and appreciation) </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 9. Painful Financial Circumstances <ul><li>Death </li></ul><ul><li>Disability </li></ul><ul><li>Unemployment </li></ul><ul><li>Divorce </li></ul><ul><li>Natural Disasters </li></ul><ul><li>Theft </li></ul><ul><li>Betrayal </li></ul><ul><li>Inheritance Inequities </li></ul><ul><li>Fraud </li></ul><ul><li>Investment Losses </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 10. <ul><li>“ You can’t think and feel at the same time” </li></ul><ul><ul><li>Milton Erikson, founder of NLP, one of the greatest psychologists of 20th century </li></ul></ul><ul><li>Arguments with spouse – one feeling, the other thinking and solving the problem </li></ul><ul><li>Settle feelings first, then explain financial solutions </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 11. The Seven Stages of Money Maturity ® This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 12. This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 13. Question #1 I want you to imagine that you are financially secure, that you have enough money to take care of your needs now and in the future. The question is …h o w would you live your life? Would you change anything? Let yourself go. Don’t hold back on your dreams. Describe a life that is complete, that is richly yours. This material was developed by George Kinder and the Kinder Institute of Life Planning. It is part of a program of trainings that lead to the Registered Life Planner ョ designation. Used by permission of George Kinder ©1999, 2009
  • 14. Question #2 This time you visit your doctor who tells you that you have only 5 -10 years left to live. The good part is that you won’t ever feel sick. The bad news is that you will have no notice of the moment of your death. What will you do in the time you have remaining to live? Will you change your life and how will you do it? This material was developed by George Kinder and the Kinder Institute of Life Planning. It is part of a program of trainings that lead to the Registered Life Planner ョ designation. Used by permission of George Kinder ©1999, 2009
  • 15. Question #3 <ul><li>This time your doctor shocks you with the news that you have only one day left to live. Notice what feelings arise as you confront your very real mortality. Ask yourself: </li></ul><ul><ul><ul><ul><ul><li>What did I miss? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Who did I not get to be? </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>What did I not get to do? </li></ul></ul></ul></ul></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. It is part of a program of trainings that lead to the Registered Life Planner ョ designation. Used by permission of George Kinder ©1999, 2009
  • 16. The 5 Foundational Goals <ul><li>Family </li></ul><ul><li>Spirit </li></ul><ul><li>Creativity </li></ul><ul><li>Community </li></ul><ul><li>Place </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 17. Challenges to a Life Planning Business Model <ul><li>The 4 Myths about Life Planning </li></ul><ul><li>Life Planning is practicing psychology </li></ul><ul><li>You can’t get paid for Life Planning </li></ul><ul><li>Life Planning is an inefficient way to practice financial planning. It takes too much time </li></ul><ul><li>Customers don’t want Life Planning </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 18. Changing Role of Advisors Source: Dubofsky &amp; Sussman, Journal of Financial Planning Aug 2009 “ Discussion of personal, non-financial issues with my clients improves my ability to do a good job” 89% Agree 11% Disagree
  • 19. Lifestyle Advisors Do Better <ul><li>66% got more assets </li></ul><ul><li>(&gt;2.5 times more likely) </li></ul><ul><li>57% added products/services </li></ul><ul><li>(&gt;5x more likely) </li></ul><ul><li>4x as many referrals </li></ul>Source: Prince &amp; Associates, 2005
  • 20. The Business Case for a Financial Life Planning Practice <ul><li>Most efficient way to do Financial Planning - by far! </li></ul><ul><li>Clients for life </li></ul><ul><li>Greater retention, fewer sales </li></ul><ul><li>Higher percentage of assets under management AUM </li></ul><ul><li>Advisor income stream automatic rather than constantly selling </li></ul><ul><li>Closing ratios much higher </li></ul><ul><li>Referrals after first meeting </li></ul><ul><li>Transferable / Trainable / Scalable / Saleable </li></ul><ul><li>4-5 times the sale value of commission-based practices (Mark Tibergian) </li></ul><ul><li>Energized client, re-energized adviser </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 21. The 4 Futures: Fair Advice TM <ul><li>F reedom </li></ul><ul><li>A ccessibility </li></ul><ul><li>I ntegrity </li></ul><ul><li>R elationship </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 22. Reflecting on Adam Smith and the great efficiencies of markets: <ul><li>“ When inner happiness and virtue are brought into the world, great economic value ensues, including social stability. Without happiness and virtue, there is a misallocation of resources from each individual. T oo often we are p ursuing g oals counterproductive to what we truly want and who we truly want to be. L ife Planning produces happiness and virtue more rapidly and more directly in people than any other financial process because it isolates, expands and then dedicates focused action on what each client genuinely wants at the core of his or her life.” </li></ul><ul><li>~ George Kinder ~ </li></ul>This material was developed by George Kinder and the Kinder Institute of Life Planning. Used by permission of George Kinder © 1999, 2009 All rights reserved .
  • 23. The Kinder Institute of Life Planning www.kinderinstitute.com
  • 24. &nbsp;

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