Oct 7, 2019
Do you use an agile financial planning process? If you’re
listening to this show you are probably interested in creating the
practice of your dreams that serves both your clients and your
family. In doing so, you need to understand how to best help your
clients while being able to achieve your own financial goals. In
this episode of Financial Planner Freedom, you’ll learn why agile
financial planning is the best way to serve your clients and
Outline of This Episode
- [3:22] How financial planning is like project management
- [5:58] Collaborating with clients helps both clients and
- [9:43] Don’t try to predict the future
- [11:56] Prioritization is key
- [14:25] Flexibility
Are financial planners in a race to the bottom?
There is a trend downward in asset management fees that is
largely driven by financial advisors who would rather work with
cheaper investment tools than cut their own fees.
I think this downward spiral will soon spill over to advisors
and planners. There will be a race to the bottom in fees if you
want to compete as a financial advisor.
If you don’t want to participate in the race to the bottom
(maybe you enjoy feeding your family) then you’ll have to think
about how you add value to people’s lives and be able to articulate
that to your clients.
How can you use agile project management to enhance your
On the previous episode, we compared
traditional planning to the waterfall approach of project
But going forward, the trend in project management software has
become an agile project management approach. Agile project
management tries to be lean, reactive, and flexible. As new risks
and opportunities are identified the software can act quickly and
take advantage of opportunities and mitigate the risks. Just like
in agile project management, agile financial planning allows you to
manage your clients’ funds in a more flexible and intuitive way.
Listen in to discover why agile financial planning is the way of
The 5 principles of agile financial planning
- Collaboration rather than delegation - Many
clients want to delegate tasks to an advisor, and advisors love
that. But when they simply delegate what they want rather than
collaborate with you, you’ll both miss out. By working together
with your clients you’ll be able to come up with better
- Predicting the future will prove you wrong -
As financial geeks, we love to create spreadsheets predicting the
markets, taxes, and finances. But we can't know what will happen in
the future. It's too unpredictable. Instead of trying to predict
the future, help your clients build a framework for a fluid
environment. Work on what is actionable today.
- Prioritize - There is so much to think about
when it comes to personal finance: budgeting, long term, and short
term savings goals, how to save, cash reserves. All of this can
become overwhelming when you try to do it all and convey it to
clients. The old system tried to tackle all of these areas at once.
But with agile financial planning instead, we prioritize. Look for
biggest risks and opportunities first to help the client and
- Flexibility helps you dodge the curveballs -
Having flexibility creates options so it’s important to not make
decisions that you can’t undo.
- Communication is key in agile methodology -
Have frequent little conversations rather than big ones.
Frequent communication allows you to identify risks and make
changes as needed.
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