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45 of 47 people found the following review helpful:
4.0 out of 5 stars
Layperson's Guide to Financial Planning, March 6, 2001
Values-Based Financial Planning: The Art of Creating an Inspiring Financial Strategy is an interesting tool for the financial services professional. At first glance it appears to be a "Layperson's Guide" or a "How To Book" for financial planning. However, upon further review one finds a useful organizational tool for pre-financial planning. Bachrach's approach uses a combination of goals and values to assist clients in creating an organizational system that can be used later to seek financial planning advice. From the practitioner's stand point it is a win-win situation. Potential clients are programmed to be organized and to seek financial planners rather than salespersons. On the other hand, practitioners may use the volume to educate clients and create an appropriate mental attitude. A road map and case-type examples are included in the book, both of which are valuable learning techniques. Attaching values to goal setting is a reasonable and inspirational process. This is a new approach to an "Old School" style of financial planning. The book is divided into two sections:  What are the first steps in planning for my future?  How do I get the most for my money? Section 1 is almost a Dale Carnegie approach of getting people interested in financial planning. It focuses on what is important to them. The term values in this context are those qualities and principles intrinsically valuable or desirable to you. Most financial planning starts off with goals. Goals are the tangible results you seek, while values are the intangibles that make pursuit of those goals genuinely meaningful to you. They are the emotional payoff. It is in Section 1 that the organizational process takes place. This includes:  Defining values  Setting specific goals  Gathering your documents  Creating the Financial Road Map An interesting question is asked. What would your life be like if you had a financial strategy based on what was truly important to you, where your investments and insurance programs were working in harmony to achieve your goals? Instead of reacting to life events, people are motivated to design and implement a financial plan. The values conversation in Chapter 1 leads into the goals formation in Chapter 2 with a stepwise, logical approach. The reality check in Chapter 3 is important in the organizational process making readily available records and documents that are necessary to set up the road map in Chapter 4. Each chapter has checklists, examples, and explanations. The documents checklist is an integral part of setting up the Road Map that illustrates "Now" and "Want to Be." The Road Map is exactly that, a road map. It has a starting point ("Where I Am Today") and personal milestones all along the way to show progress. This process encompasses reinforcement, an important factor in maintaining progress and keeping a client interested and on track. Section 2 helps one decide "How to Get the Most for My Money?" The process includes:  Deciding whether or not you need help  Identifying the 3 types of financial professionals  Testing the trustworthiness and competence of a financial professional  Starting your financial future today With the organizational phase completed in Section 1, the second section of the book helps you decide how to proceed. The three choices are to do-it-yourself, to collaborate, or to delegate. You may do whatever you want, but there are two issues to consider-your financial planning ability and your quality of life. Mr. Bachrach's reasoning is compelling. It is very difficult to develop the expertise of a Certified Financial Planner (CFP) practitioner without studying to be one, and in making that attempt you sacrifice quality of life (free time, good health, etc.). For example, it might be smarter to exercise than to spend your valuable free time trying to discover financial planning as a hobby. The Quality of Life Enhancer Worksheet in Chapter 6 is a tool designed to keep financial management in perspective. This should help one decide which way to proceed. The last two chapters are informative and motivational. Chapter 7 is filled with guidelines on how to pick an advisor and how an advisor should select a client. The last chapter encourages one to "Get In the Pool." The following statement is representative of the motivational spirit of this book: "One of these days is none of these days," an old English Proverb tells us. Procrastination can be a terrible thief, robbing your of your energy, focus, and even your dreams. Bill Bachrach does an excellent job in coordinating a tool for both the layperson and for the professional. He gives financial planning a good name and represents the CFP certificant with the up most professionalism. Good job all around! Gordon Hampton, M.Ed., D.Ph. is a business consultant and financial advisor in Lubbock, TX.
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by Ed Slott
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