What are the biggest mistakes that you see clients make?
The biggest mistakes we see clients make are usually related to emotion. People habitually give money away, often money that they cannot afford to family members without understanding – or ignoring – the implications of doing so. In the same vein, clients who do not take the hard, uncomfortable advice or ignore the warnings that we have given them regarding the actions that they are taking do, unfortunately, must face the consequences of these decisions.
What do you enjoy most about being a financial planner?
There are a few things that I enjoy about being a financial planner but mostly it is the personal element of becoming better acquainted with many of our clients. I love getting to know people and watching their stories emerge – it is incredibly rewarding to be part of someone’s journey and struggles when they finally come out on top.
What are the biggest challenges you face as a financial planner?
Globalisation, especially for young people, is a massive problem in the industry and something that I face as a financial planner constantly. The “old way” of advising clients is becoming irrelevant amid a changing landscape where young people are constantly on the move, often do not know what their goals are and have no idea where they will end up. This, combined with an increasingly redundant “retirement” plan because people will need to work longer and are going to live longer, means that advising and planning for young people in different jurisdictions is incredibly challenging. This is something that we are extremely aware of, and we are working on, and have made strides towards, implementing a plan better suited to the needs of these individuals.
What are the biggest mistakes that you see clients make?
Where clients have had bad or unsuitable experiences with advisors, products and/or investment vehicles used, there is a common thread that they did not question the advisor to ensure they fully understood and agreed with the implemented recommendations. This can often be a case of not wanting to appear ignorant or dismissive of the advice. While a certain level of trust is ultimately needed, clients should be comfortable and encouraged to ask whatever questions they may have and as often as needed to be comfortable with their portfolio.
What do you enjoy most about being a financial planner?
Being able to make a positive impact on individuals, their families and businesses is such a joy. We try never to lose sight of the fact that we are invited into deeply personal spaces of people’s lives and have a duty and responsibility not to allow our own biases or personal opinions to affect the appropriateness of our advice. Some conversations require us to be encouraging and supportive, while others require us to be firm and help redirect certain behaviours or thought patterns. Knowing that the work you do truly makes a difference in not only the lives of your clients but also has a secondary impact on those who go on to participate within other areas of their lives is a very fulfilling thought.
What are the biggest challenges you face as a financial planner?
Most directly it is how the term financial planner is so loosely defined and liberally applied. Since anyone, from those with two weeks of product training up to those with commerce degrees, postgraduate qualifications and board certifications, uses the term financial planner, it does create inconsistent experiences and expectations for clients and consumers.
There is an ever-growing number of people entering and improving within the general industry to turn it into the profession it deserves to be however; there are still too many large institutional influences that treat our young profession as a glorified sales industry. When your focus and incentives are built around production figures and no attention or recognition is given to the relationships created with clients, the bulk of the interactions will remain centred around what can be earned from a prospective client rather than what can be built with them over time.
What are the biggest mistakes that you see clients make?
Thinking they know it all. I love it when clients have done research and due diligence, but sadly their data sample size is often limited to their own lived experiences or the lived experiences of those around them. Using a Certified Financial Planner® professional who will help them see what they can’t see and help them zoom out to understand the bigger picture has incredible value. It often takes years for them to discover the true value of a financial professional.
What do you enjoy most about being a financial planner?
Stories. Everyone has a story and I love to hear your story. Your story has led you to where I find you today and I want to be your co-author and help you write the story of your future. People are amazing and complex; they keep me intrigued, curious and on my toes daily.
This profession is simultaneously the cruellest out there and yet incredibly rewarding. The rewards should not be measured on the financial success of your FSP but on the positive outcomes you help your clients reach. That is my reward.
What are the biggest challenges you face as a financial planner?
Regulation. Financial services is one of the most regulated industries in South Africa, and ensuring one is always up to date with the requirements of the regulatory bodies is exceptionally time-consuming. Previously, the challenges included recruiting the right staff, but that has been taken care of now.
