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  • Writer's pictureBespoke Financial Advice

Master Your Finances with Financial Life Managers: A Comprehensive Guide

A financial life manager is a professional who oversees all aspects of a client's financial life, not just investments. This role is more holistic and comprehensive compared to traditional financial advisors or wealth managers, who mainly focus on asset management. Here are the key elements of what a financial life manager does:

Key Responsibilities

Holistic Financial Planning:

  • Integrates all aspects of financial life. This includes budgeting, saving, investing, insurance, tax planning, retirement planning, and estate planning.

  • Addresses life events and transitions, helping clients manage significant life changes such as marriage, divorce, having children, career changes, and retirement.

Client-Centred Approach:

  • Focuses on individual goals and values: Tailors financial strategies to align with the client's personal goals, values, and life aspirations.

  • Ongoing relationship and guidance: Provides continuous support and adjustments to the financial plan as the client's life circumstances change.

Strategic Decision Making:

  • Complex financial decision support: Guides clients through complex financial decisions where the cost of being wrong is high, such as planning for disability insurance, dealing with critical illnesses, or significant market changes.

  • Focus on high-impact areas: Prioritises financial decisions that have a significant impact on the client's overall financial well-being and lifestyle.

Value Perception:

  • Shift from traditional investment management: Unlike traditional advisors who place a significant emphasis on managing investments (typically 75% of their value proposition), financial life managers invert this ratio, focusing 75% of their value on comprehensive financial life management and 25% on investment management.

  • A subscription- or retainer-based model: Often adopts a subscription- or retainer-based fee structure to provide ongoing financial planning and advice rather than charging based on assets under management.

Benefits for Clients:

  • Comprehensive support: Clients receive advice and planning that covers all areas of their financial life, ensuring a more secure and holistic approach to their finances.

  • Tailored strategies: Financial plans are customised to fit the client's unique situation, goals, and values.

  • Proactive adjustments: Continuous monitoring and adjustments help clients stay on track and adapt to changes in their personal and financial circumstances.

Financial Life Manager
Financial Life Manager

Comparison with Wealth Managers

  • Wealth managers typically focus on managing the client's assets and investments, creating strategies for wealth accumulation, and often providing specialised services in areas such as cross-border wealth management or estate planning.

  • Financial Life Managers: Take a broader view, integrating all financial aspects and focusing on how financial decisions intersect with the client's life and goals.

In summary, a financial life manager emphasises a holistic approach to financial planning, focusing on the client's entire financial life rather than just their investments. This role adapts to the client's evolving needs and offers ongoing guidance to ensure their financial strategies align with their life goals.

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