What Financial Planners Do(and Don’t Do)

Recently I misplaced my business debit card. This was pretty confusing because for the most part it stays safe in my wallet except to make deposits at the ATM and secondly I almost never lose anything(I still have the original house key to my mom’s place which she gave me when I was 10 years old). Anyways, I went through the usual checklist for lost debit card procedures. Checked my account to see if there were any charges I didn’t personally make, emptied out my wallet and checked every secret pocket, made a last ditch effort to search under the seats in my car, reluctantly called the bank to cancel my card knowing that I would probably find it soon after.

The bank rep explained that they could mail me a replacement, but it would take about 7-10 days, or I could go to a branch and get a temporary card. I decided to stop by the local branch and pick up the temporary card. I talked to the teller and explained what happened, noticing that it was a business account, he started making small talk by asking me what kind of business I ran. When I explained that I was a financial advisor, he perked up a bit and asked me a a bit more about my business. He shared that he had his Series 6 & 63 licences(required to earn a commission for selling mutual funds) and his Life Insurance license. We talked a little bit about some of the recent industry regulations. I asked him if he was working towards becoming a financial adviser, but his answer caught me a little off guard at first. He explained that he was hesitant to move in that direction because he didn’t think he would want to get up at 6am every morning and closely monitor the stock market. It reminded me of how much misconception there is about what exactly a financial advisor does. So I put together this diagram.

Even as a professionally licensed individual, the bank teller seemed to confuse the business of financial advising with stock traders who watch the market incessantly and monitor investing charts hoping to predict what a given stock will do next so they can make a quick profit. While advisors do monitor the market regularly, our work is quite a bit different from the fast paced, high pressure work of stock traders my bank teller was envisioning.

The Pyramid of Advisor Value breaks down which of our services provide clients with the most value. As you can see, recommending investments for clients is something we do, but it’s only the smallest provider of value to our clients. We provide much more value by helping clients manage their behavior, creating a financial plan, and encouraging consistent saving and investing. We’re here to guide you in the direction you want to go long term and make sure you stay on track.