WELL DONE me

I just found out that I am now a CERTIFIED FINANCIAL PLANNERCM professional.

Delighted :)

CFP certification is the only globally recognised mark of professionalism for Financial Planners. The Financial Conduct Authority (FCA - the regulator for Financial Services) requires advisers to have professional qualifications at least to QCF level four. CFP professionals have a level six equivalent qualification (similar level to University degree).

TOP 1% financial planners

How do you define the top 1% financial planners in the UK?

A definition I prefer is that the top 1% of financial planners focus on the value to the client by meeting three main aims:

1. They have a way to align a client's financial choices with the client's most important goals and deeply held values.

2. They help their clients to get their entire financial house in perfect order, measured against defined criteria, and keep it that way forever.

3. Their clients have a 10/10 level of confidence about their future no matter what happens in the economy, the markets or the world.

In other words, it's a lot more significant than the amount of money on which they advise.

WHAT ARE your values?

Many people talk about 'values' these days. Our experience is that most people don't know exactly what their values are. We ask questions that help people to articulate exactly what they most value in their life...what matters most. When you know what's really important to you, you can make better decisions about your money and how you spend your time.

What's important about life, to you?

ANOTHER WAY of looking at things

Things cost too much? No. We just cannot afford them.
Our income is determined by the economy? No. It is determined by our philosophy. We need to work on our philosphy to change our income.
For things to change, we have to change. For things to get better, we have to get better.
What happens, happens to us all. Our response to it is what matters.
Don't wish it were easier. Wish you were better.
Don't wish for less problems. Wish for more skills.
Don't wish for less challenge. Wish for more wisdom.
Our destination is not only determined by the wind. It is determined by the set of the sail. The same wind blows on us all. The difference in where we arrive is the set of the sail, not the blowing of the wind.

(With thanks to Jim Rohn)

FAILING WITH an excuse - even a good one - is never as good as succeeding

Isn't it fascinating that sometimes it seems that those who are in need the most are often also inclined the least. Being left behind, even with a very good excuse, is seldom as good as seeing problems as projects and moving forward.

DOING WHAT you know

I was comfortably seated in the tea rooms at Killerton with a Coffee and a piece of Victoria Sponge while Vanessa was inspecting the Plant Sales area (of course) and also the English Blue Bells (of course). I was reading ‘Leading an Inspired Life’ by Jim Rohn (yes, of course!)

As I sit here now reading my journal of that day, I made the note of what Jim says: “Lack of success comes from lack of confidence; lack of confidence comes from not doing what you could do. Disciplined action fosters self esteem and self respect. Even a little neglect is dangerous. Our lives will serve as either a warning or as an example. A warning of the consequences of neglect, self pity, lack of direction and ambition or an example of talent put to use, of discipline self imposed, and of objectives clearly perceived and intensely pursued”.

Isn’t it fascinating that reflection on our journals serve as a place for the truth to descend and, in that moment, give us the coaching we may need to help us stay on the path?

Well I thought you may get value from this should you ever feel like you lack confidence. Knowing that you’ve done what you know you could is the start of it all.

Well, all that said and contemplated and having then inspected every Blue Bell petal, we progressed to the Killerton House itself. I think Vanessa played Moonlight Sonata on their grand piano before we ascended to the costume collection whose theme this time was all the changes of clothes people had to make during the day in order to be properly atired for a cup of tea and a cucumber sandwich. What a palava.

Then Vanessa bought more plants (of course!).

TRUSTS - why have them?

Trusts have been around for a very long time. Individuals and families use them as a way to control how their assets are held and transfered to other people. Control is a primary reason why trusts are used. You will also hear the words "asset protection", which refers to protecting assets from risk. What are these risks? They can affect people whose property is being placed into the trust and also the future beneficiaries of the property. The risks can include:

• bankruptcy
• loss of heirlooms/"family money" through divorce or remarriage; 
• incapacity arising through a health event;
• being too young or inexperienced to deal with property or investments
• assets being accessed by those with addictions who would otherwise use those funds to further support their addiction;
• certain taxation outcomes

Taxation can often, but not always, be a secondary concern compared to family goal planning.  Family goal planning is primarily concerned with the protection and preventative measures listed in the other examples above.

For example, imagine a family has a child with special learning needs. The child is not disabled as such, but perhaps there is a concern that the child will never learn the value of money or will be unable to handle financial transactions. The wills of the parents can include a trust from which that child benefit. This means that no property needs to be transferred directly to that child, and payments can be made by the trustees as and when they are required, or even a house purchase, without the child needing to be involved in any of the paperwork or any of the transactions. There could also be flexibility so that certain funds could be paid to the child – for instance they may develop confidence and an ability to deal with certain amounts and in this way the trustees can support the development of the child whilst at the same time control the larger portion of the fund for the child's benefit.

There are many many scenarios uses of trusts which ensure that the beneficiaries interests are looked after.

As usual it is very important to obtain professional advice when looking at Estate and Asset Protection planning. (I am able to recommend suitabley qualified people).

TALENT

Isn't it fascinating that if we listen carefully we can hear something profound in the most unlikely of places:

"Trust me: you have a talent that none of the rest of us have. Just find out what it is and use it. It's doing nothing that's the enemy" - 'Sybil' - Downton Abbey, Sunday 2nd October 2011.

ON POINTS of view

Speaking with passion without the facts is like making a beautiful dive into an empty pool.

DO WE ever over-complicate things?

I recently read the following story...


Sherlock Holmes and Dr. Watson went on a camping trip. As they lay down for the night, their conversation drifted to:

Holmes: "Watson, look up at the sky and tell me what you see."
Watson: "I see millions and millions of stars."
Holmes: "And what does that tell you?"
Watson: "Astronomically, it tells me that there are millions of galaxies and potentially billions of planets. Theologically, it tells me that God is great and that we are small. Meteorologically, it tells me that we will have a beautiful day tomorrow. What does it tell you?"
Holmes: "Watson, you bonehead. Somebody stole our tent."

LET IT GO or hang on?

You know how sometimes we may get a little frustrated when a prospective customer or team member may not respond the way we had hoped, or an existing client or business partner doesn’t behave the way we would have liked?

Well, this is not productive and even reduces productivity for the future because we can be hesitant the next time we approach someone.

It’s a bit like playing golf and being unable to forget a bad shot. It is not useful to carry the negative emotions and feelings about the bad shot into the next. It’s better to let it go.

Our success or failure is never based on how a single event turns out. The decision of one potential or existing client or business partner is not the issue. The issue is our daily habits, performed consistently over a reasonable amount of time.

Imagine what would happen if the majority of our working days were invested in the correct amount of high pay-off activities consistently. People will respond both positively and not so positively, but what if you didn’t let obstacles that you know will occur deter you from doing what will lead to working with your next customer, client, team member or business partner? Imagine the results you’d receive.

You and I have little influence, if any, over how a person will respond but we can learn to let it go. The best way to let it go is to take goal directed action so that you do not empower a few individuals who may struggle to make decisions about working with you control your destiny.

Learn to let it go.

(With thanks to Bill Bachrach for inspiring this blog)

WHAT IS an effective Values-Based Financial Plan?

Certainly, a great deal of the answer is that the most effective financial life plans are much more than just a thick book of assumptions and calculations for people to wade through. It's the substance of the whole relationship between the client and the planner and what takes place.

Whenever I ask clients, “Do you want a neatly presented giant book of calculations or extra face to face time?” they always go for the latter!

The ‘number crunching’ and workings need to be done to create the plan, but it’s for our use to produce the plan and recommendations rather than for you to wade through and risk being confused (although all ‘working’ papers can be seen if you ask).

So what is Values-Based Financial Planning? Simply put, it can be represented by this diagram:

The Resources are:

• Assets
• Liabilities
• Income
• Your Skills
• Your Abilities (to save, to earn, to budget, etc)

The Goals are:

• Who you wish to Be
• What you wish to Do
• What you wish to Have

 …and there's a cost attached to these and so we then express them in financial terms.

The Goals are not just the tangible things, but also about how you want your life to unfold. What does your life have to look like to feel that you are meeting your core values? These are revealed when we talk about your Financial Road Map and The Three Questions, for example. In this way, your financial plan helps you to make financial choices that support the life you want in a profound way.

Your Financial Road Map becomes a high level picture of the life you want, which we look at again regularly and update. Your plan has the action steps needed to ensure your Financial Road Map happens in real life.

So, we are looking at the resources available, whether they need enhancing and what you need to do with them to move you towards your goals.

There will be various time frames attached to these goals, a rate of return needed, obstacles (real and perceived) to be navigated and risks to allow for. Our planning relationship will address these.

We are also looking to see if the return needed to achieve the goal is acceptable for the risk you’re prepared to take and if there are obstacles which cannot be removed. In either of these cases, we may be looking at alternate scenarios and compromises to either achieve goals as set by you or change them to something else that’s acceptable in collaboration with you.

We have found that a plan which is clear to understand, flexible and easy to carry out to achieve your goals for your reasons includes:

• Clear, written strategies and recommendations in plain English - ideally including a one page summary per strategy with diagrams as well as the written word.
• A clear written implementation plan - Staying on Track Tactics (STT’s): two or three pages of action steps of who does what and by when in sequence at our progress meetings.
• Dynamic lifetime cash flow and scenario modelling at planning meetings as appropriate.
• Open discussion, communication and collaboration between you as the clients and me as the planner. 

50% TAX is temporary

At the Institute of Director's Annual Convention on 11 May, George Osborne, said "high personal taxes can be as damaging to growth as high corporate taxes, so I am clear that the 50 pence tax rate would do lasting damage to our economy if it were to become permanent, as some suggest. It should be a temporary measure".

I wonder length of time temporary is?

BE A STUDENT of inevitability

Ask yourself often, "In all honesty, if I keep up my current daily practices, where will they lead me in 10 years?"

I work with people who perhaps want to learn a different set of practices so they arrive at a well designed future rather than an un-designed future.

If you're sat in a rowing boat without a motor and no oars 200 feet from the drop on Niagra Falls, we would call that inevitable. My role is to spot people drifting well upstream so they can make alternate choices while options are still available.

Ask, "What or who's plan am I following? Is it mine or the one someone else gave me? Is it working? Do I need a better plan? What do I need to work on that is not working now? Do I have a good plan, but need to take action on it?"

AUTO-ENROLMENT requirements

The Pensions Regulator has issued the first of its documents to assist employers complying with the automatic enrolment requirements – which something that will present a significant impact on all employers and employees.

The Pensions Regulator is writing to the UK's biggest companies, alerting them to their new pension duties, which are introduced on a gradual or 'staged' basis according to employer size. The regulator is providing a 5-point checklist alongside with the notification letters, plus further information on its website.

In the next 6 months, nearly 600 of the largest organisations employing about a third of the UK workforce (around 10m employees) will have received letters marking 18 months to their particular duty (i.e automatic enrolment) date. In due course, every employer in the UK will have received at least two letters as they approach their duty date.

The Regulator is also now providing the following information:

• A summary of duties - a five-page overview of the new duties for employers.
• Know your date – employers can check their indicative staging date for the new duties.
• Detailed guidance - This covers all aspects of workplace pension reform legislation, and is designed to be suitable for large employers with experience of providing pensions, advisers and intermediaries.
• Software guidance - This guidance is designed to help payroll software developers implement changes to their products, better enabling them to support employers.

The following further material will be issued by the regulator later this year:

• Interactive tools – these online tools have been designed specifically to help smaller employers without previous engagement with pensions to understand the new duties. This will include a tool enabling employers to look up their indicative staging date by inputting their PAYE reference, as well as a tool to calculate pension contributions.
• Trustee checklist – aimed at trustees of existing schemes, this will set out some of the issues that should be taken into account when existing pension schemes are considered for automatic enrolment.

The issuing of this guidance prompt to employers to ensure that they will be ready to meet their automatic enrolment requirement, which will take effect between October 2012 and September 2016, depending on the size of employer.

EASY TO, easy not to...

...this is the nub of whether we succeed or not. What is success? Having a design for your life and then pulling that off. It revolves around decisions and actions which are often both easy to do and easy not to do. It's a push-shove match - which will win? The discipline of doing the thing or the neglect of not? Making that call is easy to do; it's also easy not to do; walking around the block is easy to do; it's also easy not to do; eating five fruits a day is easy to do; it's also easy not to do. Easy to, easy not to. If you don't make that call today, will there be a noticeable difference 24 hours later? The answer is: no. If you don't exercise today, will there be a difference 24 hours later? The answer is: of course not. But compounded over time? The difference is huge. So, the difference between success and failure are the daily decisions we make - we either choose the disciplines repeated every day, or we make errors in judgement repeated every day. The first can be uncomfortable - today, but lead to comfort tomorrow. The second can be comfortable today - but lead to discomfort tomorrow. But 24 hours after they're made - you can't tell the difference; over time, the difference is obvious and in some cases, irreversible.

Easy to...easy not to.

DEFINITELY NOT a good walk spoiled!

RESOLVE

We will encounter all kinds of obstacles whilst progressing towards pre-determined goals. Think of a process in your business...for example, customer aquisition. What are all the possibilities? Some people you're referred to will take the call and set the appointment; some people will never take the call and will never return messages; some people will show up at the appointment; some people will not show up at the appointment; some people will show up prepared for the best experience; some people won't be prepared; some will become clients; some won't become clients, etc, etc. All of these things we know will happen. There's a name for all these things: it's called, 'Normal'. It's normal to have some of all this stuff in order to reach a point where you have a business that works for you and works for the community of your ideal customers and clients.

There's an old saying: before enlightenment, what should you do? Answer: fetch wood and carry water; after enlightenment, what should you do? Answer: fetch wood and carry water. So, don't over-celebrate your successes and by the same token don't over-bemoan your 'failures' along the path. Stay consistent.

Resolve not to be deterred by obstacles that you know will occur.

The Menu or The Meal?

Yesterday, my client said that when she came in to have her Financial Road Map® done and the discussion about the three 'hearts core' questions about her goals, she experienced so clearly why "reading the menu" is not the same thing as "eating the meal", when it comes to Values-Based Financial Planning. It is a transformational experience which aligns all your choices (not just financial) to your true north. It's no wonder I enjoy my work; it's a privilege, really.

The Philosophy of Deserve

Life is not designed to give us what we need. Life was designed to give us what we deserve. I don't mean in the justice sense, here. I mean in terms of what seems to be a natural law. We don't reap a harvest in the Autumn because we need a harvest; we reap a harvest because we deserve it. If you wish to reap, you must plant. Reaping is reserved for the planters. You can't walk into a field and say, "I need a crop". The field will say, "Who is this clown who brings me his need but brings me no seed?" Take your seed to the market place, not your need. The market place is interested in what you want to plant. Giving out starts the receiving process. Find a way to serve the many. Supply your need by concetrating serving, sharing, not concentrating on your need. Success is something you attract by the person you become, not something your pursue, go after, grasp.



With thanks to Jim Rohn for this philosophy.