Why I hate financial planners
So, here's the deal. I despise and dislike people who purport to be "financial planners". But here's the kicker; I am a financial planner, so why do I hate "them" so much?
It's easy. I have had the displeasure of dealing with many "financial planners" and I have come up with the following reasons why I hate them:
1. They are often looking to sell you a product and not a solution. Being sold a product is similar to being sold skin care kits (and yes, it is exactly like those guys in the malls with a strange accent). They want to "wow" you with something in a short space of time, sell it to you, and hope to never hear from you again. They push the sale as quick as possible.
2. They will tell you it's not a product but a tailor made solution but at the end of the day it's a product tied to a decent upfront commission/fee
3. They will lead you to believe that their solution takes into consideration your complete financial plan and by doing this part, is a step towards a greater goal. What happens is you are sold a product to serve a single need, which in turn pays them a decent upfront commission.
4. They will say they are independent yet strangely enough your investment and risk cover is through the same company.
5. Once you sign up, you get a call in a year and sometimes (if you are lucky) in the second year. This is to make sure you do not cancel your investment or policy, as this will result in clawbacks of the commission paid to them. If, however, you last a few years and decide to make a change on the investment, you are penalised for the commissions they received and your capital is depleted.
6. This is the worst one - they use guilt to sell you something. They say emotive things like "it's the cost of a dinner once a month" or "all you need to do is give up on 3 coffees a week and you can look after your kids education", and the best one is "what will you leave behind for your family?!". Don't get me wrong as these are all valid points, but it should be the result of doing a plan and seeing gaps in your investment objectives and cover you have in place, and not a guilt trip.
The industry has changed, and thankfully the Financial Planning Institute (FPI) have managed to trademark the term "Financial Planner". A person may only call themselves a financial planner if they have the qualifications, passed the board exam and have enough experience.
You can see the definition of a Certified Financial Planner(R) (CFP(R)) here: What is a CFP Professional
You can find a Certified Financial Planner(R) here:
I still hate financial planners, but I am 100% OK with a CFP(R). A CFP(R) will help you drink those coffees, budget correctly and plan for your kids education or next asset purchase. If they do tell you to stop drinking a lot of coffee, they would have done the hard yards showing you the "why" and the "how".