3433-vol. 6 issue 2-3.pmd - iarfc

Volume 6, Issue 2 & 3 15
understand that money is not the be all and end all, they
do perceive money as a means to building the life they
desire and avoiding circumstances they will regret.
Therefore, those seeking advice will quickly connect with
a financial professional who possesses the skill to
connect their money to their lives.
Financial Life Planning probably had its real start as a formal
discipline in November 2000 when the National Endowment for Financial
Education convened a group of financial planning and counseling professionals
to discuss the significance of this new field. Financial Life Planning has
emerged in response to the 77 million or so Baby Boomers that view their work
and financial lives differently than previous generations. Boomers have a new
perspective on retirement. Retirement is no longer solely about leisure, but
rather, about some combination of leisure, work, and most importantly, adding
meaning and fulfillment to their lives. This comprehensive approach to
financial planning must include planning for all aspects of life after formal
retirement, perhaps another 25 or 30 years or more. Financial Life Planning for
the “bonus years” must include finances as well as new ideas for work (paid
and unpaid), relationships, physical and mental health, recreation, and
personal and spiritual growth. “It is based on the philosophy that the most
successful and satisfying retirement experiences (result from) a series of
thoughtful, future-focused decisions made throughout one’s life” (National
Endowment for Financial Education, 2001). Anthes and Lee (2001) describe
some of these retirement challenges and opportunities as follows:
The challenges for financial services professionals
become even more complex when a longer life span,
earlier retirement, new definitions of “work,” and
significant changes to income sources at retirement
(defined contribution versus defined benefit plans) are
added to this changing picture of retirement. But,
commented one participant at the life planning meeting,
“the real questions for clients and planners looking
toward the future are not just ‘Will my money be there?’
Instead, they are soul-searching: How will I spend my
time? What do I really like to do? What will keep me
motivated? How will I—and my family—react to my not
having a job?” Helping clients think through and
answer those questions, the participants decided, is a
major part of life planning, with significant implications
for financial planning practitioners.
Practice Management