Advanced Diploma of Financial Planning Copyright TAFE 2014 Advanced Diploma of Financial Planning

Copyright TAFE 2014 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

Advanced Diploma of Financial Planning Copyright TAFE 2014 Practice Management What differentiates us from other species is……. Communication

Advanced Diploma of Financial Planning Copyright TAFE 2014 Communication Written & Presentation skills Verbal Body Language/Attire

Advanced Diploma of Financial Planning Copyright TAFE 2014 World of Multi-media, technology & electronics Thanks to social & multi-media, we are increasingly communicating in little packets of “sound bites” over the internet….. 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. If you use Abbreviations – will your clients (& compliance manager) understand them?

Advanced Diploma of Financial Planning Copyright TAFE 2014 Listening Skills 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. ourselftoday/index.php/who-do-you- listen-to/ But, to be a successful Financial Adviser, the #1 key skill is to LISTEN…….

Advanced Diploma of Financial Planning Copyright TAFE 2014 Adapting your communication style……. 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? 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?.... 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 A primary trait of all successful financial planners is their ability to communicate on the same level as their clients

Advanced Diploma of Financial Planning Copyright TAFE 2014 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

Advanced Diploma of Financial Planning Copyright TAFE 2014 Left Brain: The focus is on questions such as: What? How? Right Brain: The focus is on questions such as Why? Who?

Advanced Diploma of Financial Planning Copyright TAFE 2014 Left Brain: Ways to count; Ways to save Right Brain: Ways to spend; Ways to help

Advanced Diploma of Financial Planning Copyright TAFE 2014 Left Brain: Derogatory phrases used to describe these people: number- cruncher, 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.

Advanced Diploma of Financial Planning Copyright TAFE 2014 Body Language 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?) The adviser must also be cognizant of the client’s body language – i.e. Is the client tuning off or getting too defensive?

Advanced Diploma of Financial Planning Copyright TAFE 2014 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 Communication relates to both verbal and non-verbal Most of these players are aligned with product manufacturers It would include dress/attire, written communication and presentation and public speaking skills)

Advanced Diploma of Financial Planning Copyright TAFE 2014 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