Financial life management
Financial life management is the financial practice of evaluating both the quality of life and the management of finances of an individual to help them achieve financial lives based on what the individual considers to be meaningful.[1] Different from wealth management, which is a comprehensive financial advice model, financial life management assesses how an individual’s money will support their life choices taking into account truth, understanding and discipline to determine whether actions result in the life the individual wants versus simply a life with more money.[2][1]
Financial life management and wealth management[edit]
In 2015, investment banks did valuation reports on wealth management firms.[1] The report showed no distinction between investment banking and brokerage firms when they thought of wealth management firms.[1] Additionally, consumer perceptions of the financial services industry were researched and results showed that consumers wanted honesty from their advisor as well as the understanding that difficult decision making by the client would be a part of the process.[2] This conclusion developed into a research study to investigate client priorities.[2] After further evaluation of the results, researchers found that the term financial life management appealed to survey respondents as it differentiated from wealth management.[3]
Behavioral research study[edit]
Riedel-Strategy, a social science-based research firm that uses techniques of anthropology, psychology and finance to do market research and communications consulting for financial companies, conducted a six-month research study that involved one to two hour discussions with 30 people aged 45 years and older about financial goals and life priorities.[4][1][5]
Overall findings of the study showed that 90 percent of the participants focus on working and spending versus the 10 percent that focus on investing and saving.[1][5] Additional findings indicated that personal financial management was not entirely about money, but also about an individual’s life choices.[2] Financial life includes making trade-offs, discussing wise spending plans and taking life milestones into consideration.[2]
See also[edit]
References[edit]
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Diana Britton (March 10, 2015). "In rebranding, United Capital hopes to redefine 'wealth management". Wealth Management.com. Retrieved September 17, 2015.
- ↑ 2.0 2.1 2.2 2.3 2.4 Gil Weinreich (March 25, 2015). "United Capital's Duran: Wealth management is dead. Long live life management!". ThinkAdvisor. Retrieved September 17, 2015.
- ↑ Joe Duran (March 10, 2015). "Goodbye wealth management, hello financial life management". Investment News. Retrieved September 17, 2015.
- ↑ Paul Sullivan (March 20, 2015). "Financial advisers seek to inject a more human element". The New York Times. Retrieved September 17, 2015.
- ↑ 5.0 5.1 William Conroy (April 20, 2015). "United Capital studies clients' secret needs and desires". Financial Advisor. Retrieved September 17, 2015.
This article "Financial life management" is from Wikipedia. The list of its authors can be seen in its historical. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.
