The Evolution of Financial Planning
Stage 1 – Broker
Brokers act for the industry and sell its products for sales commissions. Advice is given away for free, conflicts of interest are high and salespeople struggle on them transaction treadmill, without creating any lasting business value.
Stage 2 – Investment Adviser
Investment advisers gather assets and believe their value is in selecting stocks or funds and talking about investment performance. It’s a crowded product sales space, with diminishing margins and threats from algorithms.
Stage 3 – Financial Planner
The place to be for well-qualified CFPs, but selling financial plans is tough. Following the 6-step-process and writing reports takes too long, is dis-engaging for clients, and most planners still need to sell products or gather assets to get paid.
Stage 4 – Lifestyle Financial Planner
Financial planning done well. It’s all about clients, their lives, and how money can help them get and keep the life they really want. Think collaboration, co-planning and coaching rather than sales or consulting. People willingly pay for this experience.