Demystifying Financial Planning
A friend and I were recently talking about work when she asked a question that caught me off guard: "What exactly do you do?" It made me realize there might be a bit of a mismatch between my writing style and my day-to-day job. My blog posts tend to be on the lighter side, focusing on the human element of finance – the stories, emotions, and behaviors that shape our relationship with money. This is a more personal approach compared to the technical jargon often associated with financial services.
While my friend's question surprised me at first, it got me thinking about a bigger issue. Finding the right professional in the financial services industry can be a bit of a challenge. Even the job titles themselves are confusingly similar. For instance, look at a list of job titles I pulled from various job posting websites related to “Financial Advisor”:
Investment Advisor
Wealth Manager
Financial Services Advisor
Wealth Strategies Advisor
Financial Consultant
Planning Associate
Client Services Associate
Investment Consultant
Retirement Advisor
Member Benefits Consultant
Personal Financial Counselor
Premier Relationship Manager
Investment Associate
Wealth Planning Strategist
and the list goes on and on... (Sorry to my financial services friends out there if I missed your title, I know the great work you do! 😊)
As you can see within the financial services industry, there's a wide range of titles, which can make it unclear for clients exactly what services each professional offers. This lack of standardization can make it difficult for people seeking financial guidance to find the right fit.
For the record, I titled myself as a “Financial Planner”. I firmly believe this is a service-based industry where I wanted to provide service to my clients, not sell products.
I founded JBY Financial Planning with the belief there is a shortage of financial advice. There are just over 300,000 financial advisors and only about 82,000 Certified Financial Planners (CFP®) in the United States according Cerulli Associates, an industry leading research firm.
Cerulli Associates, who delivers some of the best industry research out there, estimates that there are just over 300,000 financial advisors - a surprisingly difficult number to estimate given the overlap of advisors across RIA, broker-dealer, and insurance channels. The caveat, though, is that fewer than half of them even state that they actually give financial planning advice… suggesting that the majority are “financial advisors” in name only but are still predominantly focused on the sale of insurance and investment products. This isn’t entirely surprising, though, given that there are only about 82,000 CFP certificates (and not all of those are practicing or, if they are, offering “real” financial planning)!
According to the most recent census data, I estimate there are roughly 206,000,000 people aged 25 and older in the United States. Of course, not everyone needs a financial advisor, so if we say half of that population may not ever need/want to seek financial advice leaving about 103,000,000 individuals who have financial questions. Doing the math leaves approximately 343 individuals per Financial Advisor, 1,256 per CFP®.
I know some advisors may be up to the task of taking on 300 – 1,200 individuals, however once we get past a certain number of clients, the service levels and quality tend to drop. Or advisors’ prices start to rise as they are forced to hire staff and upgrade technology.
My friend's question prompted me to reflect on my approach. I believe financial planning is a continuous, collaborative process, addressing the emotions and behaviors surrounding money. These are often the key factors that determine a plan's success.
In quick a quick elevator speech, this is what you can expect from working with me:
Investing your money
Decision-making support regarding debt management
Assessments on whether you have the right insurance and plans in the event of a crisis or hardship (e.g., life insurance, savings, etc.)
Retirement planning and savings strategies
Education on investments, financial options, and leveraging your financials
Coaching and facilitating discussions about money with couples
Additionally, I've developed an ongoing process that empowers individuals to take charge of their financial futures. It's not a rigid one-size-fits-all approach, but rather a framework for ongoing conversation and engagement that can be personalized to fit your tailored needs. Here’s a look at my Annual Service Calendar…
A lot of these tasks are quick to do but are often overlooked. Sometimes we just need that accountability partner to ensure that we get them done.
Financial planning goes beyond simply increasing account balances. It's about understanding your unique situation and developing a strategy that aligns with your goals and values. Personal finance should be more personal than it is finance.
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Disclaimer: I do not, have not, and never will claim to be a professional writer. More of a self-proclaimed "numbers guy". Please excuse any spelling and/or grammatical errors. All information provided is for educational purposes only and is not intended to be investment advice. The information being provided via hyperlinks may be from third-party websites and is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website. I make no representation as to the completeness or accuracy of information provided at these websites.