Unlock the power of a network to elevate your financial planning business to new heights:
The importance of choosing the right name for your business cannot be overstated. Not only does it impact how customers perceive and remember your company, but it also holds legal significance. Different names can carry different meanings and connotations, and it's essential to understand the distinctions between them. For example, an "investment adviser" and a "regulated investment adviser" are not the same.
As the financial industry continues to evolve, the role of financial advisers is also changing. In the future, the tasks and responsibilities of financial advisers may be impacted by technology and other factors, which could affect their earning potential.
It's essential to stay informed about these trends and consider investing in qualifications or experience that will help you adapt and stay competitive. Don't wait for an abrupt ending to make the necessary changes, future-proof your business model today.
Perhaps, you feel overwhelmed by the constant changes in the industry, including new regulations and compliance requirements, and are struggling to keep up with the latest best practices.
Maybe, you are feeling the pressure of increased competition from larger firms and online platforms, leading to a decrease in client acquisition and retention.
Potentially, you are experiencing a lack of autonomy and creativity in your work, feeling constrained by the rigid processes and procedures imposed by your firm or regulatory bodies.
Possibly, you are facing burnout from the high stress and workload associated with being an investment adviser, leading to a lack of work-life balance and potential health issues.
Maybe, you are frustrated by the lack of recognition and financial compensation for the valuable services you provide to your clients, leading to a sense of underappreciation and dissatisfaction with your career.
Envision this. You can focus on what truly matters - providing unbiased, generic financial plans to your clients. Empowering them to run their own finances. You build trust and long-lasting relationships with them, knowing that you have their best interests at heart.
Imagine having the ability to create a unique value proposition for your clients, differentiating yourself from the competition and standing out in a crowded market.
Picture a future where you can access cutting-edge technology and resources to streamline your processes and provide efficient and accurate client support.
Think about the peace of mind that comes with having a reliable partner who takes care of regulatory compliance, leaving you free to focus on providing a high-quality service.
As a general financial planner, you can make a difference in your clients' lives and build a sustainable business.
We provide a solution for financial advisers to shift from a product-based revenue model to a recurring, plan-based revenue model. Our focus is on generic financial planning, leaving the product side to low-cost Robo-advisors and clients. By cutting out distributor compliance, we can reduce overhead costs and increase profit margins. The recurring plan-based fees create value for your business and allow you to act as a fiduciary adviser, placing the client's best interest first. Sat on their side of the table!
By simplifying the process and moving it online, you can run your business from anywhere. Additionally, our services include management consulting, templates, case reviews, research, technical support, compliance support, business development solutions, online events and training, technological and back-end solutions, professional indemnity insurance deals and more.
When a wall is placed between planning and product, financial planning is generic, outside distributor regulations, and subject to standard consumer protection regulations. Thus there has never been a financial planning scandal.
You can level the playing field of information asymmetry, acting as a personal financial bodyguard for the consumer. You become their professional ally.
Unlock the potential of your business with our service benefits. Say goodbye to the stress and burden of managing assets under advice, and focus on what you love and do best. Our innovative remote "work-from-anywhere" operational model allows you to adapt to the new normal of relationship management while ensuring your business is financially sustainable. Protect yourself and your family from potential distribution liability and sleep soundly at night. Scale your business to meet the ever-changing needs of society with our flexible, market-driven approach. Give your clients the generic financial planning they need in these uncertain times with our tech stack and GAME Plan services. Experience true financial freedom and peace of mind with our comprehensive service offerings.
The financial planning industry is rapidly evolving, and the end of the "small advice firm" is looming. With bank deposits performing better than investments for the first time since RDR, the increasing automation of the advice process, the commodification of the investment industry, and the rising regulatory duties, costs, and burdens, small advice firms are facing an uphill battle. The regulator is looking to eliminate these small firms, changing the face of financial planning as we know it. Don't be left behind; join us to secure your future in this ever-changing landscape. With our cutting-edge technology, expert support and tailored solutions, we can help you navigate this new era of financial planning, ensuring your long-term success and financial security. Don't wait; take control of your financial future now.
Your life's work will be very different from now on!
As a financial planner, it's time to shift your focus from commoditised financial intermediation to providing truly valuable financial plans for your clients. Hand the financial planning tool to the client! Deliver generic financial planning. This is where you'll find the true power of your expertise and add the most value for your clients. In today's competitive market, it's crucial to stand out and offer something truly unique - generic financial planning is the key to success. Don't miss out on this opportunity to elevate your business and provide real value to your clients.
As Christopher Woolard, interim CEO at the UK's Financial Conduct Authority, said in September 2020:
"The overwhelming majority of retail investors are best served by readily understood, well-diversified and low-cost investments which are already available from a range of providers, but many retail investors don’t choose these."
The value added by financial intermediation is questionable, with studies showing that actively managed funds underperform passive index funds in the long run. It's as questionable in the distribution space as it is in the management space.
A study by S&P Dow Jones Indices found that over a 15-year period, only 24% of actively managed large-cap funds outperformed their benchmark indexes. Furthermore, Morningstar's research found that most actively managed funds underperformed their benchmark index over a 10-year period.
Additionally, a study by Vanguard found that the primary driver of investment returns is asset allocation, not the selection of individual securities. This means that the value added by financial intermediaries who claim to have expertise in picking winning stocks or timing the market is minimal.
In contrast, financial planning, which focuses on creating a comprehensive financial plan and providing education and guidance on personal finance, has been shown to lead to better financial outcomes for consumers. A Consumer Financial Protection Bureau study found that individuals who received financial counselling were more likely to improve their credit scores, reduce their debt, and increase their savings.
In summary, while financial intermediation may seem convenient, the added value it provides is questionable and often outweighed by the cost. Emphasising generic financial planning and empowering and activating your clients by providing general financial education can often suffice, for most people, most of the time, while providing better consumer outcomes. This can also b delivered on a one-to-one basis in times of stress or change.
Why pay for someone to choose wealth managers?
Research by the Pensions Institute, based at Cass Business School in London, shows that just one in a hundred fund managers is able to beat the market consistently. It also concludes that even if you're lucky enough to have identified those 1% of managers in advance, you'll end up paying back any value they add in charges.
In December 2020, platform provider AJ Bell published that the most popular funds recommended by regulated advisers are the Vanguard LifeStrategy range. These "readily understood, well-diversified and low-cost investments" are available to the public direct from Vanguard.
By going direct, platform charges and adviser charges are avoided. Typically, saving you an initial fee of 3% and an ongoing fee of 1.25%.
To calculate the costs saved over a lifetime, that's 3% initial fee plus 1.25% ongoing fee multiplied by the remaining investment years!
Over 20 years, 28% cost savings.
30 years, 40%.
40 years, 53%.
The savings over a whole lifetime can be staggering.