Years back when I did my many industry exams, some of the text books covers referred to ‘Personal Financial Planning’ and then the individual specialist topic, such as pensions, investment, protection and the like. I think that the key word that was overlooked in much of the text was the 'Personal' starting point, as the books tended to delve into the minutiae of product type and the 'tech spec' of all that might be required to pass the exam.
The clear aim in these examples was to help our understanding of products to allow us to advise clients on what they should buy. And there's the rub! Selling a product and giving good financial advice may not naturally be the best of bed fellows. People do not usually want to be sold to, they want advice and help based on personal trust.
There was for many years a propensity for the financial profession to sell products, to the extent that some of the public thought that’s all we did. Sure, products are involved, even if it is reviewing existing plans to ensure they continue to meet clients’ needs, but the positive evolution of financial services has been dramatic over the last decade and many clients are reaping the benefits of change.
The use of technologies for the delivery of information and access to fund values, even online financial advice, has seen many of the public being more engaged in most aspects of their money planning and long may this continue and grow. The understanding and good communication of attitude to and tolerance of investment risk has grown and the client relationship outcomes are far better than they were even five years ago. Great news for all as the delivery of informed financial outcomes advances apace.
There are many other varied aspects to financial planning, such as business planning, and many financial planners have studied these at length. However, where directors and business managers are making decisions, these are still usually based on personal preferences, risk appetite, ethics of the business and their experience...all personal to them.
Because we are all individuals with individual and unique requirements, no individual advice is provided during the course of this blog, but see your financial services professional soon to see what can be added to your arrangements, both now and into the future.
Keith Churchouse CFP Chartered FSCI
Vice-President CISI Southern Committee