We’ve been asking people recently what they think about Financial Planners. Some of the responses have been real eye openers!
Here are 7 misconceptions about Financial Planners – and the reality.
#1 – We spend all day watching the stock markets
Contrary to popular belief, our desks do not consist of multiple Bloomberg terminals, with streams of stock prices flowing past our eyes.
We do take a passing interest in stock market movements, but certainly not on an hourly basis. Often not even on a daily basis.
Financial Planning and associated investing should be able the long-term, not about short-term fluctuations in market values.
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#2 – We are all old men in suits
Yes, the average age of an Independent Financial Adviser is somewhere in the mid-50s. And yes, there are a lot of men in the profession.
But we are certainly not all old men in suits.
Looking around the Informed Choice office today, I count four Financial Planners; one lady, three men. Only one Financial Planner here today is in his (late) fifties; the other three are in their mid-30s.
None of us are wearing suits and we rarely do, even when meeting clients.
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#3 – We are really, really good at maths
If your view of Financial Planners is a group of maths geeks, pouring over detailed pages of figures and applying complex formulas to find elusive answers, well, it’s nothing like that.
Our Financial Planning software does most of the heavy lifting when it comes to the number crunching. We do have an eye for numbers, but in the main we are more interested in the ‘softer’ aspects of Financial Planning.
Helping our clients realise their dreams in life, supported by the right finances, is more of a motivator than the numbers in isolation.
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#4 – We spend every Friday on the golf course
Networking is an important part of our role as Financial Planners; finding new clients is an essential part of any business.
Our new clients do come from social networking, such as the occasional round of golf, but are more likely to come from happy existing clients referring us to their friends, online social networking or the professional connections who know the quality of our service.
As for Friday afternoons at the golf course, we would rather be meeting with our clients or catching up on some administration at the office.
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#5 – We all drive a Porsche
If your perception of a Financial Planner is a Flash Harry driving a Porsche or other top marque, you might want to question what you are looking for in a professional adviser.
There is an adage which says a ‘poor Financial Planner is a poor Financial Planner’. Clearly you want an adviser who can manage their own personal finances to the same high standards they recommend for their clients.
You probably don’t want a Financial Planner who is extravagant with their personal or company wealth, particularly if that brand new 911 comes saddled with debt (as they so often do).
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#6 – We can predict the future
There are no crystal balls here. We are not in the business of predicting the future, especially when it comes to investment returns.
What we do, with a high level of success, is make reasonable assumptions and apply these to long-term Financial Plans, reviewing them regularly to keep things on the right track.
If that sounds dull compared to guessing the level of the FTSE 100 at the end of the year, it probably is. But dull can be good when it comes to Financial Planning.
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#7 – We only care about financial products
Financial Planning has little to do with financial products. Instead, it is about the goals, aspirations and life ambitions of individuals and their families, and how the financial side of things can support this.
Our fee structure means there is no incentive to recommend financial products, as our focus is on planning and advice. This is where we can add the most value, so we charge for this service accordingly.
If you want to be sold a financial product, go visit your bank as they specialise in selling products to earn their bonuses. It’s just what they do.
Speak to a Financial Planner instead if what you want is to quantify your goals in life and then make sure you can afford to achieve them.
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We make a great cup of tea or coffee. Do get in touch to arrange a time to get together, chat about your goals in life and what makes you tick.
First meetings are always at our expense and without obligation, so you can spend some time getting to know us better and finding out if what we do is right for you.
