Advanced Diploma of Financial Planning
Copyright TAFE 2014
Advanced Diploma of Financial Planning
INTRODUCTION
• This Presentation provides an introduction to the contemporary
financial planning environment
• It address some key skills and requirements that are needed to
be successful in this competitive industry, as well as some
factors on basic human psychology
• It goes on to review some fundamentals concepts of practice
management and typical structures that are utilized in financial
planning practices in Australia
Copyright TAFE 2014
Advanced Diploma of Financial Planning
Practice Management
• What differentiates us from other species is…….
• Communication
Copyright TAFE 2014
Advanced Diploma of Financial Planning
Body Language/Attire
Communication
Verbal
Written &
Presentation skills
Copyright TAFE 2014
Advanced Diploma of Financial Planning
World of Multi-media, technology & electronics
Thanks to social & multi-media,
we are increasingly
communicating in little packets
of “sound bites” over the
internet…..
If you use Abbreviations – will
your clients (& compliance
manager) understand them?
Mood indicators – will your clients
(& compliance manager)
appreciates them....
In our industry Spell checks are essential no excuses!
Therefore, social media type abbreviations must not be utilized in
formal communications such as FSCG’s, Fee Disclosure Statements
and SOA’s etc.
Copyright TAFE 2014
Advanced Diploma of Financial Planning
Listening Skills
But, to be a successful Financial Adviser,
the #1 key skill is to LISTEN…….
The human body is a perfect feat of engineering
and there is a reason why we have one mouth
and two ears!…….
Just like a General Practitioner (doctor) asks short
pointed questions and then listens to the patient’s
responses in order to formulate a diagnosis, a
financial adviser also needs to listen to their clients (or
prospective clients) in order to successfully formulate
strategies to help them to achieve their goals.
Copyright TAFE 2014
Advanced Diploma of Financial Planning
http://www.empowernetwork.com/freey
ourselftoday/index.php/who-do-youlisten-to/
Adapting your communication style…….
•
A primary trait of all successful financial planners is their ability to
communicate on the same level as their clients
•
For instance, a client who is an engineer, could be interested in graphs and
mathematical projections in relation to retirement planning – i.e. Exactly how
much would I require in retirement on a fortnightly basis?....
•
Alternatively, a client who is in sales or marketing could be more interested
in hearing about the big picture – i.e. What will my retirement “look” like?
•
A client who is a doctor could be curious to know more about medical
conditions that could result in a claim for TPD or Critical Illness insurance
Copyright TAFE 2014
Advanced Diploma of Financial Planning
http://righthanddesign.com.au/blog/left-brain-vs-right-brain-web-design/
•
Left Brain: Logical, analytical, fact-based, Quantitative, Planned, Organised,
attention to detail, good at administrating
•
Right Brain: Imaginative, artistic, holistic, improvisational, emotional,
interpersonal, expressive, talker
Copyright TAFE 2014
Advanced Diploma of Financial Planning
http://righthanddesign.com.au/blog/left-brain-vs-right-brain-web-design/
•
Left Brain: The focus is on questions such as: What? How?
•
Right Brain: The focus is on questions such as Why? Who?
Copyright TAFE 2014
Advanced Diploma of Financial Planning
http://righthanddesign.com.au/blog/left-brain-vs-right-brain-web-design/
•
Left Brain: Ways to count; Ways to save
•
Right Brain: Ways to spend; Ways to help
Copyright TAFE 2014
Advanced Diploma of Financial Planning
http://righthanddesign.com.au/blog/left-brain-vs-right-brain-web-design/
•
Left Brain: Derogatory phrases used to describe these people: numbercruncher, unemotional, calculating, nerd, unimaginative, one track mind
•
Right Brain: Derogatory phrases used to describe these people: Bleeding
heart, touchy-feely, soft touch, gullible, unrealistic, reckless, dreamer,
undisciplined.
Copyright TAFE 2014
Advanced Diploma of Financial Planning
Body Language
•
The adviser must also be cognizant of the client’s body language – i.e. Is
the client tuning off or getting too defensive?
•
Therefore it is essential to keep jargon to a minimum and
•
Ensure that each meeting does not exceed 90 minutes (generally, 60
minutes is preferable....)
•
The adviser also needs to “check in” at regular intervals – i.e. “How do you
feel so far? Do you have any questions? Am I going too fast?)
Copyright TAFE 2014
Advanced Diploma of Financial Planning
CONCLUSION
Communication is a key requirement for financial planners
The financial planning environment in Australia is dominated by several
large players, most of whom are aligned with product manufacturers
Most of these players are aligned with product manufacturers
Communication relates to both verbal and non-verbal
It would include dress/attire, written communication and presentation and
public speaking skills)
Copyright TAFE 2014
Advanced Diploma of Financial Planning
It is an essential pre-requisite for a successful career in this industry as
Financial Planning is a client facing industry
Complex scenarios and projections need to be communicated simply and
succinctly to clients
Advisers need to network with peers and referral sources and this is only
possible with effective communication
Copyright TAFE 2014
Advanced Diploma of Financial Planning