Thursday, February 08, 2007

Gong Show #5 - Financial "Planners"

For the gong show today I am gonging so-called financial planners who actually don't write financial plans. Why call yourself a financial "planner" if you don't actually write a financial plan for your client? Aren't you just a glorified salesperson?

I fail to understand why someone is permitted to be called a financial planner if he/she doesn't actually write financial plans. Most of these so-called financial planners do sell investment and/or insurance products but fail to integrate the implementation of these products into a complete financial picture for their clients.

This is in stark contrast to what a real financial planner will do, which is follow these six steps:
  1. Setting goals and objectives is the first step of any financial planning process - if you do not know where you are going, how can you know when you get there, or even decide which route to take? Setting goals and objectives is the foundation of any sound financial plan.
    No matter where you are heading, you need to assess where you are now, and what you already have in place for the journey.
  2. Data gathering will ensure that your personal documents are up-to-date and that you know your current financial situation.
  3. Heading in a general direction won't guarantee success in reaching your final destination. Before heading out on your journey, do your analysis and find solutions. This strategy will assist you in reaching your stated goals and will provide you with a roadmap to help you achieve these goals.
  4. Your financial plan should confirm that your goals are achievable, and appropriate recommendations will help define what you need to do to ensure that you reach these goals.
  5. A financial plan is only helpful if the recommendations are put into action. Implementing strategies will assure you reach your destination.
  6. Finally, follow-up and annual reviews are critical to ensuring you maintain a clear focus in order to succeed.


Unknown said...

For a second there I thought you were gonging yourself.

Sounds dirty.

I certainly agree that without the planning part you shouldn't call yourself a planner.

Anybody recommend buying New Century Financial?

Jesse said...

Remind me the difference between an advisor and a planner? Also let people know about the different certifications and business card TLAs and what they really mean.

Another good topic is how to fire an advisor/planner. I am sure many don't have the guts to do it because they don't know how.

Unknown said...

I want to know that how do financial planners work? Where can I find out about them and where to find a good one?

financial planners orlando