Has Your Plan, Hit The Wall?


Every now and again as a Financial Planner, I get the opportunity to review another practitioners work. Not in any formal capacity but when a new client brings me the recommendations from their previous adviser.

These days, when a client tells me their financial plan isn’t working I ask them to bring me a copy of their plan to our meeting so I can review it and I must say, that for the most part there are some pretty good advisers out there that are doing everything they can to help their clients.

Sure there is the odd one here or there that make you wonder what rock they crawled from under, but most of the plans I’ve seen over the last 14 years are good ones.

So, if the plans are good, why are they not working? I’ll outline 3 of the mistakes clients often make.

Implementation

Have all the recommendations been put in place? This is one of the most common mistakes I see. Contained within a financial plan are often recommendations to do such things as increase home loan repayments to a certain figure, develop an emergency cash fund using regular savings and reduce credit card limits as their balance is reduced.

The unfortunate thing that all Financial Planners know is that the minute you walk out our door, Life will happen and you’ll run off to the next emergency having forgotten most of what we told you to do. Because we also know you’re unlikely to re-read the written recommendation report we prepared for you, once you leave our office.

These are things that your adviser is unable to control and which you need to take some responsibility for yourself. If you need help taking action steps, then please ask your adviser. We often maintain resources to help clients in these areas.

Marital Discord

This is the one I talk about the most, because it has the capacity to jeopardise everything that you do. If your marriage seems dis-functional to you, then it probably is and you should seek some professional help before it gets worse.

A relationship in crisis will make it harder to build the wealth that you desire because both partners start opposing each other and quite often begin to implement strategies behind their spouses back. For girls, it’s usually a new store card that allows them to satisfy their comfort shopping need or retail therapy as it’s also known.

For guys, it’s typically the opposite. When a man starts to feel that his relationship is either under threat or near to the end, we start squirreling away as much cash as we can into the account you don’t know we have. You see, we know how much it’s going to cost if we have to go and fit out a new unit, we know we could have to pay bond, set up utility accounts, we may even have to stay in a hotel for a while.

Have you got a man in your life, who has always been a spender but has started scrimping for no apparent reason? Is your relationship a bit rockier than usual?

Be careful, he may be preparing himself in case you kick him out.

Cashflow

Similar to the first point, and much like a car, no financial plan can move forward without fuel. If something changes in your life, and you can no longer contribute to your strategy as much as you were, don’t just stop doing it and not tell us. We are on your side, the old plan may be no longer relevant but we can help you make a new one.

Have you taken a job with lower salary? Is your new job, so far away that it’s doubled your fuel costs? tell us about it and let us help you factor in the changes.

None of the Financial Planners I associate with are in this industry just to do business with you. We actually love hearing about your successes and seeing you hit your goals.

If you haven’t heard from your adviser for a while, don’t just go somewhere else, give him a call. He’d probably love to hear from you and enjoy having someone drag him from under the pile of paperwork he’s dealing with at this time of year.

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6 thoughts on “Has Your Plan, Hit The Wall?

  1. Pauline

    Great stuff! It’s good to know there are a lot of really savvy professionals out there, and it’s also good to have something to look into with the potential hiccups! Thanks.

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    1. rodneybukuya Post author

      So glad, you enjoyed it Pauline.

      The last few years has caused seen a lot of heartache for people. A financial strategy should be regularly reviewed but often isn’t.

      much love

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  2. Joshua Maunder

    I think this really identifies how reluctant we are to accept change. This is a great article, keep up the good work!!

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    1. rodneybukuya Post author

      Thanks Josh

      I agree albeit with a caveat. I believe we’re willing to accept change at a logical level.

      The challenge is changing the unconscious programming that drives the disempowering habit.

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  3. Gavin

    Enjoyed the post and agree with all your points and I have a question. I have often talked with people about how they set up there finances with a partner and most have integrated it. However 80% of the people I have talked to upon reflection would have kept it separate in a partnership. This all goes to when Marital Discord happens, was just looking for your thoughts.

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    1. rodneybukuya Post author

      Thanks for the question Gavin,

      I’m a big believer that couples are stronger when they work together to achieve common goals. With that in mind and in spite of the problems that need to be dealt with if it all becomes unravelled, couples should use their money in a combined sense.

      If you’re going to be be doing that though, as I outlined in another post, you need to be investing in the relationship itself.

      My wife used to spend major chunks of her time investigating spousal fraud in a previous role with a major institution. She’s seen some things that would make your skin crawl, from both sides of the gender divide, however she still agrees with me that a couple should be joined in all things.

      If you’ve got your eye on the back door from the outset, you probably shouldn’t be in the relationship.

      Hope that helps.

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