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Blue Chip Journal Issue 75 - April 2020

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Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition.Blue Chip carries contributions from FPI, carrying FPI branding, and other leading industry figures, covering all aspects of the financial planning industry. A total of 10 000 copies of the publication are distributed directly to every CERTIFIED FINANCIAL PLANNER® (CFP®) in the country, while the Blue Chip e-newsletter (launch date January 2020) reaches the full FPI membership base. FPI members are able to earn one non-verifiable Continuous Professional Development (CPD) hour per edition of the print journal (four per year) under the category of Professional Reading. Blue Chip is also distributed at key FPI events including the FPI Professionals Convention, the Financial Planner of the Year Awards Dinner and regional FPI Masterclasses. Special advertising packages in Blue Chip are available to FPI Corporate Partners, FPI Recognised Education Providers and FPI Approved Professional Practices.


PRACTICE MANAGEMENT The problem, Gawande suggests, is that Question One: I want you to imagine that doctors do not broach the subject of how you are financially secure, that you have patients would prefer to die – how they enough money to take care of your needs, would like to live their last months, weeks, now and in the future. The question is, how days and hours. would you live your life? What would you He suggests that it is instinctual for do with the money? Would you change doctors to cure, even if this is not possible anything? Let yourself go. Don’t hold – to offer hope even where there is none. back your dreams. Describe a life that is He gives the example of a cancer patient complete, that is richly yours. who undergoes chemotherapy that is Question Two: This time, you visit your likely to extend life by a few months while doctor who tells you that you have five to severely compromising quality of life. It 10 years left to live. The good part is that will not “save” them, but the doctor doesn’t you won’t ever feel sick. The bad news is necessarily spell this out. that you will have no notice of the moment no surprise, Gawande then, that suggests Ricardo Semler, that a a better R20k, of and your that death. the What process will usually you do involved the time highly successful, approach might innovative be discussing industrialist with the four you meetings. have remaining The potential to live? Will client you change had patient how they would like to live the last your life, and how will you do it? and entrepreneur from Brazil, wrote a experienced so much value in just one book entitled The Seven Day Weekend. He aspect of the first meeting that they were encourages Where employers doctors think differently are clearly moved to set ask on if this preserving was R20k per meeting life, about how they manage their people, and – not because they didn’t want to pay the there is often an opportunity for the financial more importantly, how to get the best out fee but because they thought given the of people. planner He argues that to technology remind that clients value they that had unlike already experienced, tax, death this was supposed to make life easier such as was a possibility. laptops, cellphones is not and email, something has actually we can avoid or evade. encroached few months people’s of their free life, time. and then within The value Question in people Three: This time, your doctor But as that he context says, this decide can be if chemotherapy a good thing would In a knowledge-based shocks you with the economy, news that when you you have if you have be the appropriate autonomy or to not. get But your Gawande work also are providing only one a day professional left to live. service Notice based what done on acknowledges your own terms how and talking to blend about your such on knowledge, feelings arise experience, as you confront thinking your and very work life topics and personal is difficult, life. He and suggests that invariably that interpersonal real mortality. skills, Ask to yourself: quantify What anything dreams innovative doctors employers have will little eventually or no training realise on how in terms will be of left time unfulfilled? – be it your What do employees’ I wish I had to embark on such conversations. finished or had been? What do I wish I had that people may be more productive if they working hours or the time spent with a Given that these conversations with done? What did I miss? have the flexibility to decide for themselves client – is a disservice to the value that medical professionals not only have I know planners who have tried asking when to quality work of and life play, but also rather cost than implications, the financial as clients planners these and questions their staff and potentially found them employer brutal deciding. as it may Rather sound, than the opportunity time in, can is add often to too their challenging clients’ lives. for both client and employers there ideally for should financial focus planners on value to have out. these So planner. the opportunity It’s easier not is ripe to ask, for the even picking though The conversations importance with of clients value well was before to innovate as Kinder with intends, respect these to are how questions you get to highlighted the survival for me instinct recently need when kick I in. met But the and keep challenge people clients and on make what they them really more see with a financial conversations planner are who uncomfortable related how – so how productive. as important LinkedIn’s their 2019 life – and Global may Talent prompt they helped to have a potential them? client resolve a Trends changes Report in indicates their life irrespective that over 30% of their of dilemma about A first their step future may be retirement. to introduce job-seekers a financial will position. turn down But a these job if there questions are They helped broader the life client planning assess approach retirement to the not flexible still don’t work address arrangements. the question Computer of how the work of financial planning. A number client wants to die. options in a more rigorous and creative giant Dell implemented flexible work of financial planners already do this, Mitch Anthony, another proponent way than if the client had simply tried practices in 2009. US healthcare company but they are in the minority. After all, it of Life Planning, suggests that the key to do it is on much their easier own. to No talk doubt about the needs, Humana to getting did the to know same your in client 2016, very using well experience numbers, and thinking products, that markets, this planner politics and technology is to be to curious. enable He call-centre also emphasises workers the had done even over the drought. many years made this to work importance from home. of getting to know a client meeting very George impactful. Kinder, the founder of the More through recently discussing Microsoft their past, in Japan present When Kinder it came Institute to discussing of Life Planning, the financial suggests experimented and future. with It may a be four-day in that conversation week for planning that fee, financial the planner planners mentioned should that be asking their about employees. the future, Without even when an adjustment a client is fit the upfront their clients financial at least planning three key fee questions: was in remuneration. and healthy, that The a result? financial Productivity planner could improved by 40%. Operational costs fell, with 23% less electricity and 90% less paper used. Perpetual Guardian, a New Zealandbased introduce financial the topic services of how firm, the moved client to a four-day would like week to die. in It late may 2018. start off Productivity as a very improved hypothetical 20% conversation, over an eight-week but it will make period; an it much independent easier for survey the financial showed planner, staff stress the levels client and reduced the family and to have work-life a meaningful balance improved conversation from about dramatically. the dying process when that inevitability is real. Having such As you think about innovating to keep a conversation will undoubtedly have up with constant change, don’t get stuck a significant influence over the client’s on technology and forget about your financial planning, but more importantly people. could have They profound may just implications end up working for the for a business quality of that their has life found in their a last real days. way to make a dent The in reality traffic of congestion! the Covid-19 virus is that its arrival is undetectable and its impact References unpredictable. Devastating for some, David less so Rock, for The others. Neuroscience Having the of considered Leadership – conversation Improving Organisations with your clients by Understanding about how the they Brain, want Talk to at die FPI may Convention, not be as 2012 viable in this Covid-19 season as when it’s business Morgan Housel, The advantage of being a as usual. Covid-19 is an acute condition little underemployed, www.collaborativefund. that strikes quickly. com, 17 May 2017 But the pandemic certainly provides a Ricardo very timely Semler, reminder The Seven of the Day importance Weekend, of Penguin this conversation Publishing, for 2004 all clients and their Robert families, Booth, and Four-day the key role week: that trial a finds financial lower stress planner and can increased play productivity, helping them www. have that, conversation. 9 February 2019 McKinley Corbley, Microsoft Japan Recently Gave References their Employees a 4-day Week – and Productivity Atul Gawande, Skyrocketed Being Mortal by – 40%, Illness, www., Medicine, and What Matters 8 November in the End, 2019 Profile Books in Association with Wellcome LinkedIn Talent Solutions, 2019 Global Talent Collection, 2014. Trends Report, 2019 George Kinder, The Kinder Institute of Life Samantha Planning, McLaren, How these 4 Companies are Mitch Embracing Anthony, Flexible author work of a number – and of Why books You Should dealing Too, with, getting to know your client and 22 May life planning, 2019 Rob Macdonald, Head of Strategic Advisory Services at Fundhouse 44 34

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