Terminology in Financial Planning at times can be quite confusing at times, and I could like to attempt to explain some of the common acronym used in my daily financial planning practice, training and coaching.
7CAPITAL - stands for 7 aspects of financial planning which I've developed and the financial planning terms associated with. They are Creation, Accumulation, Protection, Investment, Tax-effective Transfer, Annualized (Retirement), Leverage. The following link further explained my concept on 7capital: http://chewhockbeng.blogspot.sg/2012/08/the-building-block-of-7capital.html
DOME - Diagnosis, Objective, Method & Evaluation. DOME is the building block of the financial planning practice of 7capitalist, just like one has define their Mission, Vision and Goal. DOME sets the foundation of our financial advisory model. In each of these letter, it is further defined.
Firstly, "Diagnosis before prognosis is malpractice" which define D.
Follow by O which represents Objective and we set SMART goal. As the old adage, nobody plan to fail, but fail to plan. So we decided to plan with "End in mind".
Next, M represents the Method in financial planning. To be precise, it is a procedure, the process we follow to assist our clientele to achieve their financial goals. I call it HEARD. In financial advisory, we understand that our client want to feel that they have been heard regards to their concerns and issues, and definitely do not want to be "hurt" while making these important financial decisions. Based on client's perspective, H is the first step in the financial planning process which I call it "homework". The homework defines the client's current financial status, concerns, and their desired goals. As for our "homework", it defines our financial planning experiences, the credential and our professions. E is the financial planning interviews which is Engaged constructively by both parties, i.e. client-adviser relationship. After the interview engagement, we need to Analyse the information gathered to come up with appropriate Recommendations for the plan to be implemented. Of course, the whole process will be Documented so that the financial plan would be the basis for monitoring the financial well-being on a on-going concern. Once, I heard it from someone who says "Never underestimate how much people just want to feel that they have been heard; once you have given that chance, they will hear you." Impactful? isn't it?
The last letter, E, of DOME is Evaluation. We can only inspect what we expect. No surprises and we seek to be transparent and upfront in our dealing to deliver "WYSIWYG" - What you Seek is what you Gain, in our financial planning approaches.
I've a simple ppt to share with here @ http://chewhockbeng.blogspot.sg/2012/07/how-ifa-be-trained.html
SMART - stands for Specific, Measurable, Attainable, Realistic and Time-bound.
The link might be helpful @ http://chewhockbeng.blogspot.sg/2010/11/be-smart-in-setting-your-financial.html
SABO - is another acronym which I have created to help our client to understand their plan implementation. S is the solution we have created for the client and the Advantage of the plan being recommended. And the many Benefits that associated with, should the plan be implemented. Of course, all this will be pointing to the Objective of the plan being discussed when we set the SMART goal during our interview and engagement.
iFAćè - It aims to equip financial consultant with the investment and insurance know-hows and to create a unique service deliverables for their clientele base. It is a 8-12 weeks skill-based program. More information could be found @ http://chewhockbeng.blogspot.sg/2012/08/iface-independence-financial-advisory.html
PIE - it is not an expressway. It means 3Ps, 3Is & 3Es. Here how it goes; we are seeking responsible well-being to earn a decent Income to fund for their Insurance plan so that thereafter we can create wealth through Investment planning. With Premium payment, we can ensure Protection plan is in force so that any extra money available can create wealth to generate Profit. All these are made possible with our combined years of Experience and financial Education training to help our client to generate Earning in their financial plan. And we strongly believe that good business comes with good Ethics!
Finally, CbFC - it is not any financial designation. It is just something which I aspired to be for our clientele. I call it the "Certified Behavior Financial Coach". The True Wealth Concept is built upon on 4 important values, i.e. Clarity, Balance, Focus & Confidence. More details could be found here @ http://chewhockbeng.blogspot.sg/2012/07/trained-to-be-financial-consultant-with.html
I hope these 7 (rather 8) concepts have heighten your understanding towards the acronym used in my blog. Thank you.