Lifestyle financial planning is not a new concept. Yet, it appears this idea has not completely caught on in the South African context. So, let's take a moment to explore what it is, how it differs from traditional financial advice, and how you can benefit from partnering with a financial advisor who follows this model.
Traditional Financial Planning
In the past, financial advice was mostly an exercise entailing a financial advisor (AKA salesman) selling us a product (e.g. medical insurance, short-term insurance, or a retirement annuity). These products would more or less match your spoken need or a need they identified. This type of financial advice is orientated around providing once-off advice, and consulting is often separated from you as a person and your holistic financial situation.
Furthermore, traditional financial advisors often sell only the products they are authorised to sell – not necessarily the best ones on the market. In essence, you choose your product when you choose your advisor, whether you understand this or not. The goal is not matching you to the best-suited product or giving you holistic, individualised advice. This was and still is an acceptable practice that suits many.
The Benefits of Lifestyle Financial Planning
Contrasted to the traditional financial advice model explained above, lifestyle financial planning is much more personal and holistic.
Here are five advantages of switching to this approach and partnering with a lifestyle financial planner:
- Personalised financial roadmap: Lifestyle financial planners create a personalised financial plan by viewing you as a complete person with needs, dreams, and goals, ensuring your financial objectives align with your desired lifestyle.
- Comprehensive financial assessment: They conduct a thorough analysis of your entire financial situation, considering not only your income, expenses, investments, debts, and insurance but also your broader life objectives and circumstances.
- Holistic approach: Lifestyle financial planners connect with you as a person (or couple/family/business) and consider your whole life holistically. They want to ensure your financial choices support purposeful living aligned with your desired lifestyle.
- Regular monitoring and adjustments: Your financial plan will be continually reviewed and updated to adapt to changing circumstances and ensuring your life's purpose and goals remain on track.
- Objective guidance versus product sales: A lifestyle financial planner is a trusted partner, not a salesman. They prioritise your best interests, offering unbiased advice and financial coaching focused on your unique needs, objectives, and desired quality of life. Implementing certain products might apply, but you will choose them according to your requirements.
Lifestyle financial planning is not a once-off meeting or transaction but, if chosen well, a relationship that can last for a lifetime.
A Lifestyle Financial Planner is a trusted partner, not a salesman.
Get a lifestyle financial planner
We encourage you to think about the points above, consider the lifestyle financial planning process and reflect on whether you would like such a partner to help you move forward in life. You will be empowered to make decisions that can impact and change your and your loved ones' financial future and overall lifestyle.
If you would like to know more about lifestyle financial planning, have any questions related to the process, or would like to book an appointment with an advisor, please do not hesitate to contact us at 33 Actuarial and Advisory. We look forward to a chat!
