Partha Iyengar Highlights from Retreat

Partha Iyengar

14 June 2013

FPA RETREAT 2013 Highlights

Content

• Fiduciary

• Circle Gathering- Reflections

• Neuroscience of Change

• Financial planning and Uncertainty

• Spinning Fire: Flow Arts and Change

• Technology

• Under the Trees - Conversations

• Future Think

• New Business Model- Rick Khaler

• End of Growth

• Imagining the World of 2020

Photo Credit: David Niblack, Imagebase.net

Fiduciary- Bill Aikin-fi360

• Fiduciary Standard - 3000 Years History

• Trustee by Nature > Morals of Market Place

• Fundamental - Loyalty and care

• Loyalty - Obligation to serve Client's Interests

• Care- Obligation to act with skill and good judgement

• FPA Standards of Care = Core Fiduciary Duty - loyalty and care

Source : Google Images

Circle Gathering

• Stories

• Reflections

• Listen

• Deep Insights

• Transitions

• Humility and Integrity


Neuroscience of Change- Judith Glaser

• Transformational Conversations

• Healthy Conversations = experience change differently

• Human Beings - 99% like rats!

• Reaction to change-fight or flight,freeze or appease

• 3 Levels of Conversation

- Level 1 - transactional-distrust -phase 1

- Level 2 - positional- phase2

- Level 3 - transformational - trust- phase 3

• Power of circles and rituals


http://www.creatingweinstitute.com/

http://www.creatingweinstitute.com/

Financial Planning and Uncertainty – Elizabeth Jetton

• Life is filled with uncertainty.

• We have chosen a profession that by definition must accept and address it

• Young ones live with virtual world all the time.

• Sharing economy is in- collaborative and project based

• Nanotechnology will extend our lives.

• Retirement Planning is passé


Financial Planning and Uncertainty

• We need to know who we are and what is our role

• New world with new issues

• Neuroscience and money

• Gig economy- future clients

• Resilience economy

• "We are called upon to help people deal with the most powerful secular force on the planet- MONEY" - Dick Wagner, CFP

• "Ability to maintain your core purpose with integrity in the widest variety of circumstances,to recover, persist or thrive amidst disruption"

• New Business Models and competition


Financial Planning and Uncertainty

• What moves the needle is spending and how much you save, the life choices must be done human to human.

• Advisors play a role in the high touch and in offering the ability to some one to think about and manage their whole financial life ,to re-integrate their financial lives.

• Have empathy and let the curtain go behind us

• If Advisors want to provide value ,they have to earn their keep by ascertaining the part that is so difficult to figure out: " How financial decisions map on to the things we want out of life" - Dan Ariely

• You must help your clients see the potential of abundance they have, to look at what they already have : their gifts and resources..."


Spinning Fire: Flow Arts and Change- Holly G Kindel

• Ask clients simple questions: How can I help you? And then shut up and listen

• What is it like to change? Change is uncomfortable

• If you want to change, you have to be willing to be uncomfortable

• Facilitating vs Normalizing

• Clients wants us to facilitate change

• Our primary role is to normalize the discomfort of change

• Her teacher taught her to overcome fear through process and procedure

• Process, commitment and procedure for change

• Experienced the fear, challenge and triumph of the change process

Photo Credit : Holly Kindel - Spinning Fire

Spinning Fire: Flow Arts and Change

•Application and practice of tools brings her success

•Pre-contemplators:

- reluctant - rebellious

- rationalizing - resigned

• Three Principles

- leave your judgment at the door

- choose your language consciously, reflecting positive attitude

- utilize self-to- self comparisons instead of self to others

•Remain grounded in our journey to progress

•Give space in your life. What is feeding you and nourishing you.

Photo Credit : Holly Kindel - Spinning Fire

Technology – Bill Winterberg

• Google Glass Video- http://www.google.com/glass/start/how-it-feels/

• Next big thing- use videos to optimize Seo. 50 times easier to end up in search results

• Google Hangouts- sharing knowledge,ideas, social settings,etc

• Telepresence

• Biggest blue ocean - social video

- vine, you tube ( top 2 search engines in the world)

Source : Google Product Demo

http://www.google.com/glass/start/how-it-feels/





Under the Trees- Conversations

• Profound Experience

• Ecosystem and Expertise

• Space

• Listen

• Group financial life planning

• Correlation- neuroscience and circle gathering conversations

• Right brain focus to solve deep seated money issues.


Future Think- Michael Kitces and Bill Winterberg

• Interactivity

• What if scenarios across the table

• Technology has to answer in 90 sec

• Lessen the back and forth iterative process

• Fin planning experience has to be 'felt' and clients have to be at the 'heart' of the financial plan

• Gamification and identify trends- the need for it to help clients

• Behavior change, nudge through technology

• Success stories- mint.com for budgeting


http://mint.com

Future Think

• In stream Wealth- intelligent, collaborative,alerts, etc.

• One to one nudges and through friends and apps - accountability partner concept- eg.weight watchers.

• Data gathering- make it easier and less painful

• Money is still a taboo subject. apart from sex, religion, etc.

• Clients will find advisors through YouTube and other social medias. Bill's experience.

• Bill's example- 5th or 7th contact reached to CPA. it helps to have digital presence through multiple channels

• Robot advisors- investment advice and portfolio management at 0,25% p.a.


Future Think

• Financial Planning - Differentiator

• But Learnvest and Personal Capital have both planners and technology

• People with less money need more planning and budgeting

• Skills needed for the future- interactive planning,effective and efficient documentation through electronic mediums

• Find content faster by organizing effectively and use mobile to access and present to clients.

• Soft wares like Instream using crowd sourcing.


New Business Model- Rick Khaler

• Future Financial Professionals will work as Team

• Financial Planner and Financial Advisor

• Financial Planning:

- 10% Products/Comprehensive Planning

- 90% Life Planning/Coaching/Mentoring/ Financial Therapy

• System 1-90% - Psychology, System 2 -10%- Financial Planning


New Business Model- Richard S Khaler

• The Power of Whole Brain- financial planner and therapist/coach

• Define career path and promoted junior planner to planner/ senior planner and owner to financial advisor.

• Rick through scientific tests identified people suited for various roles in his team. Since implementing the concept as a two member team for clients with clear responsibilities, has seen great improvement in business and happiness among staff members.


End of Growth-Planning Opportunities in a Resource constrained World – Rick Vodra

• Energy=Population=GDP

• Two parallel energy systems- "WTF OMG"

• Magnitude of oil problem- US consumption for this year > 6 years usage during World War II by everyone on earth

• Discoveries peaked in 1960s

• Hard to predict the future

• Shale oil is expensive and only few big fields

• Peak Oil impact- volatile prices, economic competition, disruption etc.

• Biggest impact - transportation and agriculture

• Without more oil, end of overall growth in real economy

• Impact of global warming

Hurricane Irene- East Cost 2011

End of Growth-Planning Opportunities in a Resource constrained World

• Four possible 21st century paths:

- business as usual

- techno fix

- power down- we' ll respond rationally, creative and cooperatively

- catastrophe

• Applying financial planning principles with PO + GCC

• What are positive or less depressing

• How would we plan for clients who have comparable problems.

• PO+GCC is a risk management problem.

• Risk management is what financial planners do

• Resiliency is the key to responding to PO + GCC


• PO+GCC creates an opportunity for values based planning

• Pursue real work- interior work, spiritual work

• Appreciative enquiry - abundance vs stuff

• Material prosperity does not equate with happiness

• Two kinds of financial planning responses we can suggest - investment decisions and life planning

• Impact- PO+GCC will likely cause disruption and new rules at all levels

• Responses- reduce risk exposure generally and reduce personal debt

• Financial planning responses-PO+GCC = traditional energy more expensive, less reliable or less available


• Responses- downsize,live close to family and work,take vacations now

• Transportation of all kinds will be expensive. Agriculture will be affected

• Localization and support becomes the key. Repairing and reusing will be common. Self-reliance will become important.

• Become and stay healthy. Learn new skills

• Investment Responses- Lowering expected returns

• Investment Responses- World view One and World View Two - similar returns

• Develop a blended mix of portfolio consisting of alternative energy and bet on global climate change

Imagining the World of 2020 – Lowell Catlett

• People will afford what they want

• 4 Billion people in the world will need financial planning

• Those who have rich and deep social connections die at only 1/4 the rate of any/all causes. 50% less infection rate.

• 3D Printing will be revolutionary and change the world.

• U.S. citizens after disposable income spend only 31% on housing, utilities, alcohol, food, etc. Lowest in the world.

• Food consumption in average American household is 9.6% of income. Lowest ever in history and the world.

• Americans spend 69% of their disposable income by buying crap


Partha Iyengar Highlights from Retreat

Economy & Finance

Transcript of Partha Iyengar Highlights from Retreat