The industry is shifting from a focus on ROI to ROL (Return on Life™). The key value delivered by financial advisors is their humanness. And the human aspect of the advice and planning process is found in each client’s story: where they came from, how they got here, and where they hope to go.
Knowledge and integration of these stories give the financial plan a visceral resonance and exponentially raise the probability of follow-through on the client’s part.
What are the chief components of a quality life tied directly to financial decision-making? Our research concludes that 10 aspects of life are tied to financial discretion and prudence, and that these 10 aspects constitute the three categories of what most would agree is a “quality life.”
These three categories are: (1) a sense of well-being; (2) the sense that you’re making progress; and (3) the sense that you have freedom to live life the way you want.
In a Return on Life™ (ROL)-centric practice, the specific life transitions that your client currently faces and anticipates in the future must be the spinal column of the planning dialogue. This focus makes your process highly personalized and uniquely vital to each client’s reality. By emphasizing your clients’ transitions, clients intuitively understand the need to keep you in the loop of any upcoming changes in their situation. You are now more than a financial adviser—you are a Life-Centered Planning™ confidante.