Financial Planners explain their role saying how they take care of the financial health of an individual or his family in the same way that a doctor takes care of his physical health.
Hence it will be relevant to mention the various individuals or domain specialists who belong to both these professions –
Doctor * Dentist * Cardiologist * Orthopedic * Eye specialist * ENT * Endocrinologist * Urologist * Oncologist * Pharmacy * Diagnostic Aid * Physiotherapist * Nutritionist/Dietician * Gym Instructor
Financial Planner * Tax consultant * Stock broker * Insurance planner * Mutual Fund advisor * Estate Lawyer * Banker * Property consultant * Online Financial mart * Financial stress test * Financial rehab consultant * Career counselor * Personal coach
As you read this, I hope you will get the connect (or disconnect?) that I am trying to draw your attention to.
At a recent get-together of professional networkers for business opportunities, I was truly amazed to see the enthusiasm and energy of the members and their guests (I was one of them) at an early hour.
One of the speakers at the event, who was highlighting the manifold benefits of networking, asked the audience – “How many people want to be a crorepati?” The response was on expected lines as quite a few enthusiastic hands went up promptly.
While the speaker continued, my mind wandered off….I was pondering over the common thought that all of us face “How can I get rich?”
A point to note about this group of networkers is that they only allow one member from one business category. As a result there is always a scram for different types of financial intermediaries – LIC agent, MF advisor, Financial Planner, CA etc. You’ll realize that rarely you will come across a financial intermediary (yours truly included) who will stick to such a narrow band of specialization.
If you refer to the parallels between a physician and a Financial Planner – The numerous specializations that you come across in the field of healthcare, where each specialist is able to carry out a sustainable practice without encroaching into another specialist’s domain, vis-à-vis the financial domain where everybody is trying to be the proverbial “Jack of all….and master of ….”.
This is a reality and not my or anybody’s perception, hence not debatable. This reality hurts because the financial intermediary (at large) suffers from an acute myopic obsession of maximizing sales and commissions.
However, further pondering will certainly reveal that in the healthcare domain the multiple domain specialists can sustain their practice, because there is something tangible to create, look after and protect, i.e. our health.
In contrast, the financial domain is poorer as it can hardly sustain multiple domain specialists without an acute degree of cannibalization because there is no significant wealth to take care of. It is not that we do not have our share of HNIs and super HNIs (high net worth individuals) but their numbers definitely do not justify the existence of a vast army of financial intermediaries and the masses would rather look at them as ‘agents of commission’ rather than specialists capable of delivering any ‘fee-worthy service’!
At the root of this disconnect is the acute absence of a “wealth creation” culture. A life insurance agent is driven by MDRT and TOT goals, a stock broker’s earning is driven by the number of times a client churns his portfolio, a mutual fund advisor is driven by maximizing NFO (new fund offer) sales to the lure of an overseas junket or other goodies; and so on and so forth. Rarely do you come across intermediaries who will shun the limelight of being in the media glare because he needs plenty of time to do his homework in an ever changing financial landscape.
Back to the prompt affirmative response in wanting to become crorepatis – the need for a culture for ‘wealth creation’ needs to be driven by a vision, mission and plan of action backed by a passion to show up on time, every time round the clock and the year.
Then, the problems of overlapping domain specializations and the rarity of clients willing to pay fees would melt into oblivion. There would be something tangible to create, look after and protect. Any possibility of damage to wealth will be countered with a resolute determination and the need to keep growing one’s wealth will become the bed-rock of all exercise.
Rounding off with the oft-repeated Buffet-ism on wealth creation “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
