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retirement financial planning

February 2024 Introduction

Written by Juanita Wrenn

By now you probably will have seen Hudson on some form of social platform, advocating our Financial Life Plans and the benefit they can bring to your overall wellbeing and contentment.

How is Financial Life Planning different to a traditional financial plan? Hudson have a number of advisers that specialise in financial life planning so if you are interested in finding out more about these plans after reading our report, please contact us or reply yes here to find out more.

A financial life plan and a traditional financial plan share the common goal of improving an individual’s financial situation, but they differ significantly in scope, approach, and ultimate objectives. Here’s a succinct comparison:

Financial Plan

  • Objective Focus: Primarily concentrates on financial goals such as savings, investments, retirement planning, and insurance needs.
  • Quantitative Analysis: Involves numerical goals, such as achieving a specific net worth, saving for retirement, or budgeting for expenses.
  • Short to Medium Term: Often emphasises achieving financial stability and security within a set timeframe, focusing on tangible milestones.
  • Transactional Approach: Views financial decisions more as transactions necessary to reach financial security or independence.

Financial Life Plan

  • Holistic Approach: Integrates financial goals with personal values, aspirations, and life goals, going beyond mere numbers.
  • Qualitative Analysis: Considers the individual’s life vision, happiness, and fulfillment as integral to planning, not just financial metrics.
  • Long-Term Perspective: Looks at the entire lifespan, aiming to align financial decisions with life transitions and personal growth.
  • Behavioural Aspect: Focuses on changing financial behaviours and mindsets, seeing money as a tool for creating a fulfilling life rather than an end goal.
  • Empowerment and Wellbeing: Emphasises control and choice over finances as means to achieve overall wellbeing, aligning financial decisions with what brings joy and fulfillment.

Key Differences

  • Scope and Integration: Financial life planning is broader, incorporating personal life goals and values into the financial planning process, whereas traditional financial planning is more focused on financial objectives and security.
  • Goal Setting: Financial life planning involves setting goals that are deeply connected to an individual’s personal values and aspirations, whereas traditional financial planning focuses on achieving specific financial targets and milestones.
  • Approach to Money: Financial life planning encourages a mindset shift regarding money, viewing it as a tool for achieving a fulfilling life, whereas traditional financial planning views money more as a means to secure financial stability and wealth accumulation.

In summary, while both approaches aim to improve financial health, financial life planning offers a more comprehensive and integrated approach, focusing on aligning financial strategies with personal values and long-term life satisfaction. Traditional financial planning, on the other hand, is more focused on achieving specific financial goals and security. Both plans can offer product in conjunction with strategy or they can look at strategy on its own. Our plans, depending on the complexity of them, collaborate with your account and estate lawyer, or we work in with our business partners.

It is more affordable than you might think and I honestly cannot think of one person who would not benefit from a plan.

If you are curious to find out more, reply yes and we will contact you to discuss how a plan might look for you.

Book a FREE 15 minute meeting

Plant a tree with us today, to sit in the shade in the future.

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