Financial Coaching

Mentoring vs Financial Advice

Understanding what EMPIXO does today, and where regulated financial advice begins.

EMPIXO currently provides financial coaching, financial mentoring, financial capability education, decision support and practical implementation support.

These services can help you understand your situation, organise your finances, build systems, explore options and take action.

They are not automatically the same thing as regulated financial advice.

The difference matters.

1. The simple version

EMPIXO coaching can help you:

But there is a point where coaching may move into a personalised recommendation about a particular regulated financial product.

That is where the nature of the service changes.

2. What financial coaching can look like

Financial coaching is practical.

It can involve sitting down together and working through questions such as:

• Where is the money going?
• What debts do we have?
• What bills are coming up?
• Are our bank accounts set up properly?
• What are we trying to achieve?
• What needs to change?
• What information are we missing?
• What questions should we ask the bank?
• How can we prepare before seeing an accountant?
• What does our KiwiSaver statement actually mean?
• How much are we paying in fees?
• What financial systems could make life easier?
• What are our options?
• What happens if we change one part of the plan?
• Who else needs to be involved?
• What actions should happen next?

The goal is to help you better understand and manage your own financial position.

3. Coaching is not just talking

EMPIXO coaching may include practical implementation support.

That can mean helping you:

• build a household budget;
• organise a debt schedule;
• create a bills-account system;
• set up spending and savings systems;
• prepare documents;
• organise financial records;
• understand bank statements;
• review cashflow;
• prepare for a bank meeting;
• organise IRD information;
• prepare questions for an accountant;
• understand general KiwiSaver information;
• understand insurance concepts;
• organise information about assets and debts;
• create a net-worth picture;
• model different scenarios;
• use EMPIXO Money Map once it launches (the Money Map is currently in development);
• build a financial action plan;
• identify next steps; and
• follow through on agreed actions.

That can be substantial help without necessarily becoming regulated financial advice.

4. Where the line starts to matter

The line becomes particularly important when the conversation moves from:

education, explanation and decision support

to:

a personalised recommendation or opinion about a particular regulated financial product.

For example, there is a difference between helping you understand how mortgage structures work and recommending a particular mortgage product or lender for you.

There is a difference between explaining KiwiSaver fund types and recommending that you move into a particular fund.

There is a difference between explaining insurance concepts and recommending a particular insurance policy.

There is a difference between explaining investment diversification and recommending that you buy or sell a particular investment.

5. A mortgage example

Coaching and education

EMPIXO may currently help you:

• understand fixed and floating mortgage concepts;
• understand loan-to-value concepts;
• organise income and expenses;
• calculate affordability scenarios;
• prepare documents;
• understand what lenders may ask for;
• identify questions to ask a mortgage adviser or bank;
• organise your household banking;
• explore the financial impact of different repayment levels; and
• prepare for a lending conversation.

Regulated financial advice

A personalised recommendation such as:

may be regulated financial advice.

EMPIXO does not currently provide that regulated mortgage-advice service.

Residential Mortgage Advice is intended to become EMPIXO’s first regulated advice service in the future.

6. A KiwiSaver example

Coaching and education

EMPIXO may currently help you understand:

• what KiwiSaver is;
• contribution levels;
• employer contributions;
• government contribution concepts;
• fund types;
• risk levels;
• fees;
• performance information;
• compounding;
• first-home withdrawal concepts;
• retirement goals; and
• questions to ask your KiwiSaver provider or adviser.

We may also help you locate and understand information already available about your KiwiSaver account.

Regulated financial advice

A personalised recommendation such as:

may be regulated financial advice.

EMPIXO does not currently provide personalised regulated KiwiSaver advice.

7. An investment example

Coaching and education

EMPIXO may help you understand concepts such as:

• risk and return;
• diversification;
• investment time horizons;
• compounding;
• asset classes;
• volatility;
• liquidity;
• income versus growth;
• investment fees;
• long-term goals;
• net worth; and
• the financial trade-offs between different strategies.

Regulated financial advice

A personalised recommendation to:

• buy;
• sell;
• retain;
• switch; or
• change

a particular regulated investment product may be regulated financial advice.

EMPIXO does not currently provide regulated investment advice.

8. An insurance example

Coaching and education

EMPIXO may help you:

• understand different types of insurance;
• identify financial risks within your household;
• think about what would happen financially if income stopped;
• understand the difference between protection and wealth-building;
• organise existing policy information;
• understand general terminology; and
• prepare questions for an insurance adviser.

Regulated financial advice

A personalised recommendation about:

• a particular insurer;
• a particular policy;
• a particular level of cover; or
• a particular insurance product

may be regulated financial advice.

EMPIXO does not currently provide regulated insurance or protection advice.

9. Banking Help

Banking Help is a current EMPIXO coaching service.

We can help you understand and organise areas such as:

• everyday accounts;
• bills accounts;
• spending accounts;
• savings accounts;
• joint banking;
• business banking;
• automatic payments;
• direct debits;
• account authorities;
• statements;
• internet and mobile banking;
• banking terminology;
• fraud and scam awareness;
• documents for a bank meeting; and
• general lending concepts.

We can also help you prepare questions for your bank.

EMPIXO does not make decisions for a bank and cannot guarantee that a bank will approve an account, loan, mortgage or other request.

10. Power of Attorney and banking authorities

EMPIXO may help you understand general banking processes involving:

• account authorities;
• Powers of Attorney;
• assisting another family member with banking; and
• preparing questions or information for a bank.

We do not provide legal advice about:

• whether you should establish a Power of Attorney;
• what type you should use;
• drafting one;
• changing one;
• whether a document is legally valid; or
• disputed legal authority.

Those matters should be discussed with an appropriate lawyer.

11. Tax & IRD Coaching

Tax & IRD Coaching is another current EMPIXO service.

We may help you:

• organise IRD correspondence;
• understand general tax concepts;
• understand amounts showing on your IRD account;
• organise overdue obligations;
• budget for tax;
• prepare a cashflow plan;
• prepare for a repayment-plan conversation;
• organise information for an accountant;
• use Xero more effectively; and
• build systems to reduce the chance of tax obligations becoming a recurring crisis.

Tax coaching is not the same thing as specialist tax advice.

EMPIXO does not hold itself out as an accountant, tax lawyer or specialist tax adviser.

Where the issue requires:

• interpretation of tax law;
• a specialist tax opinion;
• personalised tax structuring;
• technical return treatment; or
• legal advice,

we will normally recommend that an appropriate accountant, tax specialist or lawyer becomes involved.

12. Small Business Coaching

EMPIXO can currently help small-business owners work through:

• cashflow;
• budgets;
• forecasts;
• banking;
• debt;
• tax provisioning;
• Xero;
• financial systems;
• records;
• business planning;
• financial organisation;
• pricing concepts;
• break-even concepts; and
• accountability.

We may discuss common business structures such as:

• sole traders;
• companies;
• trusts; and
• LTCs

for general education.

That is different from giving you personalised legal or tax advice about which structure you should use.

Where structure decisions require specialist advice, we will recommend an appropriate accountant, tax specialist or lawyer.

13. Clubs & Community Organisations

EMPIXO can currently provide coaching and practical support for:

• clubs;
• sporting organisations;
• incorporated organisations; and
• community groups.

This may include:

• budgets;
• cashflow;
• reserves;
• grants;
• funding;
• accounting organisation;
• financial systems;
• policies;
• committee processes;
• annual planning;
• member administration;
• volunteer administration;
• records; and
• practical implementation.

EMPIXO is not acting as the organisation’s lawyer, auditor, accountant, tax adviser or formal governance adviser unless that is expressly agreed and appropriately qualified.

14. Wealth Planning

EMPIXO Wealth Planning is a current coaching and decision-support service.

It may help you look at the bigger picture, including:

• your goals;
• assets;
• debts;
• net worth;
• cashflow;
• property;
• savings;
• KiwiSaver;
• investment information;
• retirement thinking;
• family goals;
• future scenarios;
• trade-offs;
• financial resilience; and
• what actions may need to happen next.

The purpose is to help you build a clearer financial picture and plan.

Where Wealth Planning moves into a personalised recommendation about a particular regulated financial product, the service boundary changes.

That recommendation should be provided through an appropriate regulated financial advice process.

15. What happens if the line is reached?

We do not want to pretend that every financial conversation fits neatly into a box.

A coaching conversation can naturally move toward an area where regulated financial advice may be appropriate.

When that happens, EMPIXO should not simply continue the conversation as though nothing has changed.

Instead, the relevant part of the discussion may:

• stop;
• be reframed as general education;
• identify the decision that needs to be made;
• identify the information that needs to be gathered;
• identify questions for the adviser; or
• be referred to an appropriately authorised adviser or specialist.

The coaching relationship may still continue around the other parts of your financial plan.

16. Right Specialist First

EMPIXO believes the right person should handle the right problem.

Sometimes the most useful thing we can do is help identify that another specialist is needed.

Depending on the issue, that might be:

• a mortgage adviser;
• financial adviser;
• insurance adviser;
• investment adviser;
• accountant;
• tax specialist;
• lawyer;
• bank;
• insolvency specialist;
• government service;
• community organisation; or
• another appropriate professional.

A referral does not mean you have to use that person.

You remain free to choose your own provider.

17. Preparing you for professional advice

Being referred for specialist advice does not mean the coaching has failed.

Good preparation can make specialist advice more useful.

Before a referral or adviser meeting, EMPIXO may help you:

• organise your documents;
• understand your current situation;
• identify your goals;
• build a budget;
• calculate cashflow;
• list your debts;
• list your assets;
• organise existing policies;
• organise KiwiSaver information;
• prepare questions;
• identify concerns;
• understand terminology; and
• record the decisions you need help with.

That can make the eventual professional conversation more focused.

18. After professional advice

Coaching can also continue after you receive specialist advice.

For example, EMPIXO may help you:

• understand the actions that need completing;
• update your financial plan;
• adjust your household systems;
• update your budget;
• organise paperwork;
• track progress;
• build new financial habits; and
• stay accountable.

We do not replace the professional who gave the specialist advice.

19. You remain in control

A core part of financial mentoring and coaching is client autonomy.

EMPIXO may help you understand your situation and think through your options.

The decisions remain yours.

You can:

• ask questions;
• disagree;
• take more time;
• seek a second opinion;
• choose another professional;
• decide not to proceed; or
• change direction.

The purpose of coaching is not to take control of your finances away from you.

It is to help you become more capable of managing them.

20. EMPIXO does not hold your money

As part of normal financial coaching, EMPIXO does not take custody or control of your:

• bank accounts;
• investment accounts;
• KiwiSaver;
• cash;
• savings;
• client funds; or
• financial products.

You should also never provide EMPIXO with your secret banking credentials such as:

• internet-banking password;
• PIN;
• one-time passcode;
• authentication code;
• security token; or
• other secret account credentials.

21. General information can still be useful

Something does not have to be personalised regulated financial advice to be valuable.

For many people, the first problems are more basic:

• the numbers are unclear;
• accounts are disorganised;
• debts are scattered;
• bills are being missed;
• tax is building up;
• important documents cannot be found;
• financial decisions keep being delayed;
• partners are not communicating;
• goals have never been written down; or
• nobody has helped turn the situation into an actionable plan.

That is where financial coaching can make a meaningful difference.

22. Future EMPIXO Financial Advice

EMPIXO intends to build a separate regulated financial advice service.

The planned sequence is:

Phase 1: Residential Mortgage Advice

Future areas may then include:

• Investment Advice;
• Insurance & Protection Advice; and
• regulated KiwiSaver advice where appropriate.

These regulated advice services are not currently available through EMPIXO.

They will only launch once the appropriate qualifications, licensing and/or Financial Advice Provider authorisation arrangements, adviser requirements and compliance processes are in place.

When regulated advice launches, it will have its own:

• engagement process;
• adviser information;
• disclosures;
• terms;
• fees;
• conflicts information;
• record keeping; and
• complaints arrangements.

23. About Brett’s financial mentoring background

Brett Cole is currently listed on the FinCap register as a financial mentor and a financial mentor supervisor.

He also provides supervision to trainee financial mentors in New Zealand.

Brett Cole brings around 20 years of banking, lending and financial mentoring experience, helping people understand banking systems, organise their finances and prepare for important financial conversations.

This background informs EMPIXO’s coaching approach.

It does not change the boundary between current coaching services and future regulated financial advice.

24. The EMPIXO approach

The EMPIXO journey is:

LEARN

Understand money, systems, risks and opportunities.

PLAN

Understand where you are now, where you want to go and what needs to change.

ACT

Build the systems, complete the tasks, work with the right specialists and put the plan into motion.

LIVE THE OUTCOME

Create more choices, resilience, confidence and opportunity through better financial decisions and action.

Financial advice may eventually become one specialist pathway within the ACT stage.

It is not the whole EMPIXO journey.

25. Unsure which type of help you need?

You do not need to know whether your problem is:

• coaching;
• mentoring;
• banking help;
• tax coaching;
• Wealth Planning;
• regulated financial advice; or
• something that requires another professional

before contacting EMPIXO.

We can help identify what type of support the situation appears to require.

If the issue moves beyond the appropriate scope of EMPIXO’s current services, we can explain that boundary and help identify the next appropriate step.