Highlights from SuperWebinar, an online conference on the future of finance
Here are some highlights from the first edition of the SuperWebinar, an online conference on the future of personal finance entitled “The future of personal finance and how to benefit from developing trends”, which took place on Saturday 3rd November 2018.
Speakers from the UK and Poland delivered a wide range of interesting and substantial presentations on financial planning, financial coaching, budgeting, income, savings, taxes, investments, new technologies, fintech, the future of money, and various economic, cultural and psychological aspects of personal finance.
What kind of schools of thinking on finance do we have?
Andrzej Manka, organizer of the SuperWebinar spoke about the three main schools of thought on money.
The old school of thinking of money is that of tangible goods (banknotes, coins and precious metals). In this school, money is akin to treasure.
The second school of thought on money believes in the power of electronic devices, credit cards and online transactions. Often the people who treat money in this way are aware that money has more in common with mathematics and computer simulation.
The third school of thinking on money is the postmodern school. The school believes that money is first of all a concept, an idea and the way of communication. As a concept, this means that everyone can be a producer of money, not just a consumer of it. The postmodern money-thinkers already have their bitcoins and their local currencies.
Should you listen to popular financial authors?
Remigiusz Stanisławek pointed out some dangerous aspects of financial advice given by popular bloggers, but not financial advisers. The inspiration for this research was a training seminar under the headline:
‘How to simply and effectively sell investment products while not talking about the real effects of such investments’ given some months ago. Remigiusz’s main idea is: Let the numbers speak to you instead of only believing. If someone can operate a financial calculator or excel, then they will immediately understand why it’s better not to overpay a mortgage and hold it for 30 (rather than 20) years! Remigiusz also explains why he uses many credit cards, and how to prepare an Emergency Fund for “The financial Black Hour”.
What is the poverty premium?
Maysam Rizvi contributed to the webinar by speaking about how low-income households pay more for essential goods and services. Some data is forcing us to think about this problem:
· 16 million people in the UK have less than £100 in savings (MONEY ADVICE SERVICE (MAS) SURVEY)
· 45% people admitted to money worries impacting on their mental health and life (EXPRESS-NEWS)
· Two-thirds of people in the UK feel too confused to make the right choices about their money
· Every year there are 20,000+ mortgage possession claims and 125,000+ landlord possession claims
· Every day, 3,828 new debt problems are dealt with by The Citizens Advice Bureau
· Every 1.8 hours a property is repossessed
· Every 5.2 minutes someone is declared bankrupt or insolvent in the UK
People want to improve their financial well-being, reduce losses and improve their reach & financial health. The solution could be Elifinty. This is a financial AI that understands money, predicts and guides to the best solutions, and helps customers escape financial traps. It is an AI-driven, voice-enabled, life goal-driven finance application designed to help people manage their money better.
What can financial coaching offer?
Kasia Manka gave an answer to the question: What is financial coaching, and coaching in general?
The first benefit of financial coaching is accurate and useful information. It gives us a lot of information about money, about spending models, even about plans and dreams. Using the specific tools and techniques of coaching would help to provide everyone with a lot of useful data determining activities. The second benefit is a sense of inspiration that leads people to motivation and success. And the third benefit is the influence on one’s own life to sustain these changes.
Should Financial Planning take Uncertainty Seriously?
Henry Leveson-Gower talked about the many risks that can influence finances. Nowadays, the rate of change and level of uncertainty may outpace good governance and unity. It’s important that the risks are not only of a financial nature, based on greed and speculation. For example, limiting global warming to 1.5°C is possible within the laws of chemistry and physics, but doing so would require unprecedented changes. Here are some important and risky climate changes humanity currently faces:
· floods, drought, storms, heatwaves and heavy rainfall will become more intense and possibly more frequent,
· rising sea levels will increase the risk of flooding with low-lying tropical island communities and coastal cities (especially in developing countries) at particular risk,
· pollution, habitat destruction and over-exploitation will lead to significant reductions in biodiversity and increase the risk that some ecosystems will rapidly collapse,
· the destruction of homes and livelihoods due to natural disasters could also lead to increasing migration and increased tensions,
· the demand for food and water will increase but some crops will fail and water shortages will become more frequent,
· better management of water and improvements in agriculture (including through technology) could meet rising demand, but this will require investment and action. If not handled effectively, it could lead to disputes, and possibly conflict
· transport and trade routes, including key chokepoints, are likely to be disrupted affecting global markets and supply chains.”
All of these factors will dramatically change money systems of the future.
What is the complete structure of Financial Plan?
Dr Andrzej Fesnak, talked about how to apply professional financial planning principles to achieve the best possible goals.
In general, everybody falls into one of several financial categories. These group different types of expenses, and can be gathered together according to similarity. This makes a kind of financial CV for every person.
According to the wider definition, financial planning is a fairly complex process of managing personal finances to achieve goals more easily. Everything can be bought and achieved more cheaply if it is planned. It is only a matter of predicting when a given need may arise, and what financial mechanisms can be used. Thanks to this method, it is possible to reduce acquisition costs from 95% to 5%.
All this should be in the financial plan, which is the basic element of financial planning. It’s a financial document containing the client’s financial data; it lists the client’s goals, lays out the consequences of an existing lifestyle in relation to these goals, shows recommendations for improving quality of life, and looks at goal setting in a legal aspect. A financial plan is wide-reaching and covers about 60 aspects of life in 7 main categories.
The key elements of a plan are:
1. Financial ratios (indicators, pointers, coefficients)
2. Investment elements
3. Protective elements
4. Educational elements
5. Debt management elements
6. Real estate elements
7. Health elements
8. A.I elements
Financial indicators like net worth, financial cash flow, debt coverage ratios and goal coverage ratios help better understand the situation and find the recommendation.
Investment elements show how to achieve short-term , medium-term and long-term goals based on wishes and needs of client.
Protective elements are needed to create the protection of life, health, property, pension, business continuity, and also to build a plan for preventing uninsured risks.
Educational elements show how to build the plans for one’s own education, children’s education, financial education, religious educational plan (if relevant) and education related to hobbies.
Elements of debt management are needed to solve the problems with tax optimization, short-term debt, medium-term debt, long-term debt and mortgage debt. It is important not only to make plan how to pay back the debts, but also a plan of conscious borrowing.
Real estate elements are needed if someone wants to avoid a situation when real estate simply “happens” in life. Everybody needs a property acquisition plan, ownership plan, financing plan, management plan and real estate investment plan.
Health elements in a plan are essential, because without personal heath, any other plans could hardly be fulfilled.
In the structure of a financial plan there’s a place for a health recovery plan, health maintenance plan, transferring healthcare to the next generation, family health plan and health financing plan.
Making a financial plan for someone in their mid-twenties, we have to think about the decade between 2070-2080. At this point, the rule of A.I. will be greater in personal life, but it is still unpredictable. Nowadays, it’s possible to divide aspects of A.I into 2 categories: public influence and personal influence. Public influence of A.I. are the algorithms everybody has to follow. But private cooperation with A.I. could develop into such categories like: life assistant, family assistant, tutor for children, professional tutor, care attendant (as seen in Japan), pleasure attendant and family member.
If someone wants to take action, here are some fundamental take-away points:
· Set your goals
· Determine the financial value of the current goal
· Find how much time is needed using all monthly income
· Remember that a financial plan should cover many goals, not just prepare you for retirement
· If working with a financial advisor, remember- these points are still valid!
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Secure your spot for the second edition of the SuperWebinar on the future of personal finance. Register here.
SuperWebinar is the biggest online fintech conference representing the interests of consumers, freelancers and small business owners.
Six speakers from the UK and Poland took part in the first edition of the SuperWebinar in November 2018. It was an important event for those who are interested in financial planning and the future of finance.
However, in May 2019 SuperWebinar will be much bigger. Forty speakers from around the world will deliver a wide range of fantastic and memorable presentations of 20 minutes each, with an additional 10 minutes for Q&A.
They will be covering the following topics: the future of money, financial planning, financial coaching, budgeting, income, savings, taxes, investments, new technologies and fintech. They will also be discussing economic, cultural and psychological aspects of personal finance, and more.
We are expecting 10 thousand participants.
Why sponsor the SuperWebinar?
To increase your brand awareness and associate it with the future of finance and trust.
To reach a new audience
To attract new customers
I’ve attached the sponsorship offer for you. Please read it and let me know if you have any questions or need more information. If you have a question or need more information please send me an email or give a me call.
The Financial Manifesto
Tel. +44 (0) 7541 594 243