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

Volume 6, Issue 2 & 3 17
True Values
The first step then in Financial Life Planning is discovering each
client’s “true values” via a structured and consistent process. Personal values
evolve from experiences with the external world and can change over time.
Personal values are implicitly related to choice; they guide decisions by
allowing for an individual’s choices to be compared to associated values
attributed to each choice. Personal values developed early in life may be
resistant to change. They may be derived from those of particular groups or
systems, such as culture, religion, and political party. However, personal
values are not universal; an individual’s genes, family, nation and historical
environment determine personal values. This is not to say that the value
concepts themselves are not universal, merely that each individual possesses
a unique conception of personal values, i.e., a personal knowledge of the
appropriate values for their own genes, feelings and experience that uniquely
define who they are and their reactions to life experiences.
If financial planners are really going to understand their clients,
especially the Top 50 or so, advisors have a responsibility to “dig” or
collaboratively explore with their clients. Advisors are not likely to get an indepth
answer to a question such as, “What are your true values?” The
answers have to be inferred from a structured, well-balanced, in-depth
discovery process, that treats every individual uniquely, but at the same time
can be standardized with all clients.
Getting Started
Start by determining where the client is now, “Point A” and where
they want to be, “Point B.” The advisor’s job is to help the client determine
what they are willing to do to get from Point A to Point B and what is truly
important along the way.
• An initial focus of inquiry is to determine the client’s satisfaction
with their current situation with questions that ask, “Are you
satisfied with…”
• Your ability to meet your current financial obligations?
• Your spending habits?
• The ‘extras’ you are able to buy for yourself and/or your loved
ones?
• Your ability to provide financial help to family members?
• Your ability to respond emotionally to your personal financial
issues?
• The feelings you have about your money life?
Clients are asked to identify their level of satisfaction in each area
using a 5-point scale from “very satisfied” to “not satisfied.” These and many
Practice Management