This is my story of becoming a financial advisor, why I decided to change my whole approach a few years ago when I'd already built a client base worth 200k a year, and my five step process to being a highly valuable financial planner in 2020 and beyond.
I became a financial advisor in the UK at the age of 20 in a world almost unrecognisable to what it is today. Since then financial planning needs have evolved and financial planners need to evolve with them...
I started to question the true value of the service I was providing some years ago, when direct to market and robo-advice propositions started to be introduced.
If someone is simply looking for a financial product, these can meet the needs of many in a cost effective way, so why would anyone seek out a financial planner to set products up for them?
Answer... they wouldn't. Financial planners are not needed for these in this day and age but still, too many financial advisors put financial products at the centre of their service.
Of course, I always did more than just sell financial products, but I had been guilty of falling into the 'transaction trap' with many people until I had my light bulb moment. This happened when I came across the work of renowned Lifestyle Financial Planner, Paul Armson...
The most important thing in anyone's life (perhaps aside from their health) is their lifestyle.
It is the reason we all get up and out of bed every morning and work hard - to provide us with our LIFESTYLE. We all want more time and freedom to enjoy an ideal lifestyle.
This needs to be at the centre of all financial plans and discussions - the purpose of any financial advisor, financial planner, financial coach or whatever you want to call them, is to help people get and keep their ideal lifestyle with total financial independence. No matter what happens.
No other profession does this - real financial planning should help to quantify how much is ENOUGH, and devise a strategy to get people there.
People are interested in lifestyle - not financial products.
I realised this and decided to change the way I delivered my service. I remembered why I wanted to be a financial advisor!
At the time my fee income was around 200k a year and I knew that changing everything would mean reducing my income initially, but I was committed, and I'VE NEVER LOOKED BACK.
0:00 Start 1:33 My background 3:58 My dilemma 4:34 The Turning Point 6:09 What All Advice Should Focus On 8:53 Changing My Process - How Did I Do It? 10:48 The Results - What Happened When I Changed! 12:40 THE PROCESS I FOLLOW! Step 1: POSITIONING 13:40 Step 2: RE-ITERATING THE PURPOSE OF THE FIRST MEETING 15:13 Step 3: EXPLAINING THE SERVICE & COSTS USING THE RISK REVERAL TECHNIQUE 17:24 Step 4: CREATING THE FINANCIAL PLAN 17:48 Step 5: IMPLEMENTING FINANCIAL PRODUCTS (IF NEEDED) 18:30 More Lifestyle For Clients = More Lifestyle For Me!
These steps allow me to create a financial plan that clients value and that they are willing to pay for.
If anyone is wondering 'Should I be a financial advisor?' I can definitely say that the answer is yes, as long as you deliver truly valuable Lifestyle Financial Planning.
Whether you want to be a financial planner in the UK, US or anywhere else, lifestyle is the key.
