How we’ve integrated coaching into our financial planning process

I was never good with numbers. I need a calculator for simple arithmetic. Yet here I am, working as a partner in my husband’s financial services practice. And while I believe the role I play creates a lot of value for our clients, thank goodness it has almost nothing to do with numbers. Let me explain.

Two years ago, I made some big changes in my life. I was 52 and our last ‘baby’ had left for university. I had been working in agency PR for 25 years and in thinking about my future I knew I wanted to try something different. Of all the roles I played in my position, coaching and mentoring team members was my real passion and I wanted to explore an opportunity to build on that as a life coach. But taking that leap meant some big changes. And while I am not opposed to change, I am definitely not someone who seeks it out. Change meant leaving my secure, well-paid position for the unknown. I was excited and I was scared. But here’s what I know. Whether planned or not, big life transitions are hard and exciting and scary and emotional.

Before I did anything, my husband and I talked a lot about our individual and shared goals. We worked through how we’d be impacted by my initial loss of income, what it meant for our future and then figured out the steps we needed to take to prepare for the change. It was through these many conversations that our business partnership was born.

The more we talked about it, the more we realized what a powerful combination life coaching and financial planning make. The foundation of life coaching is to create a process that allows people to clarify their vision and goals, and then empowers them to reach their full potential. This process is equally important when it comes to financial planning; however here, people are often focused only on the numbers, basing their success on benchmarks that really have no personal significance. Money should never be the endgame but rather a tool to get you where you want to go. Once you're able to clarify what's truly important to you, that's when you can figure out what you'll need financially to make that happen. It’s amazing how much more motivating it is to stick to a plan when you're working toward a meaningful goal instead of simply trying to accumulate assets to reach some prescribed 'number'.

Coaching also plays an important role in financial planning when people experience major life changes. Whether it’s exciting, like starting a new job, getting married or having a baby; or difficult, like losing a loved one, divorcing or being diagnosed with a serious illness; life transitions happen to all of us, and they can have major emotional and financial impacts. Unfortunately it’s during these highly emotional times when people make decisions that can have long-term financial implications. This is where life coaching can really help. It's during times of transition, in particular that it's important to view the situation objectively, re-evaluate your priorities and goals, and then, if necessary re-focus or adjust your plan. By going through this exercise before making major financial decisions it is a lot less likely you will make reactive mistakes.

Life-first financial planning certainly isn’t a new concept but by fully integrating the fundamentals of life coaching into our process, I think we've been able to enhance the value we provide to clients. It allows us to get to the heart of their priorities and values, making for a more holistic wealth management strategy that evolves as they do. Not everyone decides to make a major life transition, like I did. Sometimes change happens without warning so it’s important that a plan takes both scenarios into consideration.

It’s now been two years since I took my own leap into something new. After experiencing a major life transition first hand, I've learned that whether planned or not, change can be frightening, overwhelming and emotional. Being prepared for it gave me the confidence to move forward toward some new goals. I’m excited about the work we’re doing and about the future. Now if only I could improve my math skills…

Raymond James Ltd. is a Member Canadian Investor Protection Fund.