Help, my financial planner is an alien

Michelle, thanks for the delightful read.. I had a few giggles from your post because its all so true. Talking anything related to finances and insurances can be overwhelming to some and enjoyable to others.

Good article, Michelle.

I often start with asking my clients for a detailed bucket-list so I know what they're thinking behind what I might be advising. BUT - our job is not to tell them what to do, but to tell them the consequences of what they do and point out some alternatives.

As someone who would never go to Bali on ethical grounds I find it hard to listen to some of the items and reasons for someone else's list but we do it with as much patience as we can - a bit like with insurance that no one wants but which may be necessary. We can't make people do what you recommend, but we must explain the consequences of them not doing so. Which then brings me to the real issue that's NOT being discussed. Too many financial planners make investment recommendations rather than create financial plans.

Inevitably their investment recommendations are wrong or at least flawed, but they don't seem to realise that every wrong piece of investment "advice" they give undermines all the other advice - which may be sound and practical, but get tossed into the "he/she said" basket along with the mistakes on managed funds, shares and property. in other words STOP giving gratuitous investment advice and get on with the other stuff that you might know something about.

Allow your clients to make their own decisions (perhaps with a little guidance) about investing rather than holding yourself out to be the expert in those matters and be consistently proven wrong - as you will almost 50% of the time.

The only reason investment advice is given is because it secures your value proposition with the platform/funds (fees earned based on requirement to invest, rather than fees earned regardless of whether any investing occurs) and has little to do with competency or even clients' needs. They can lose their money for free!

Thank you Tamara and Philip for your comments.

Tamara, glad you found it funny. I had a few giggles writing it, too!

Philip, exactly! it would be hard to force people to do what you recommend - especially if it means living frugally or not going to Bali! whatever the case may be. I've met a lot of planners who do talk about providing financial advice, not just on investments - but I agree that for some, the focus is too much on product selection and not on financial planning.

Cheers,

Michelle