Journal of Financial Planning: December 2020
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I’ve heard this question posed before but never gave it any serious thought. I viewed it as an academic exercise similar to asking, “Do doctors see other doctors when they feel sick or do they prescribe their own treatment?”
More recently, the buzz around the topic has grown louder, so I decided to do some digging. But where to begin? I found this definition at letsmakeaplan.org and took it from there.
The CFP Board site reads: “No matter where you are in life, CFP® professionals know how to deliver the high standard of financial planning service to make sure you’re on the right track. From planning for retirement to saving for college, CFP® professionals are trained to help you develop a comprehensive strategy to reach your short- and long-term financial goals.”
This quote is the message we try to deliver to prospects. Our objective is to generate thought, which hopefully turns into action. We want clients to think about today while being mindful of tomorrow. As planners, we are trained and educated to do exactly as the above states: “deliver the high standard of financial planning service to make sure you’re on the right track.” So as planners, why don’t we do this for ourselves? We can certainly determine the right savings rate to meet goals, make sure we are properly insured, have our estate plan in order, and, of course, create a diversified portfolio. But is that really enough?
Survey Says…
I conducted a poll of other planners in my network (granted, a small sample size but I still think relevant). The consensus was that most thought it was beneficial to consult with an independent planner. Why? Mainly for the intangibles, like having someone to point out your blind spots or who can inspire you to take the actions needed to implement your plan.
While I believe there are many reasons for planners to hire a financial planner, the one that resonated the loudest was also the most basic: it allows you to get out of your own way. A few simple considerations: will you be able to remain disciplined with your own investments? If you have a spouse, will you be able to remain unbiased about their needs and concerns? Can or do you devote the same time and attention to yourself that you do clients?
I believe, and behavioral finance shows, that most of us are influenced by our own biases. So, when facing challenges or just performing a routine finance tune-up, it makes sense to consult with a professional. It also helps to hold you accountable. There is a famous saying that goes “plan your work and work your plan.” You can craft a brilliant plan but if it’s not executed properly, the outcomes can be disastrous.
As planners, we all know the time and energy we put into creating plans for our clients and the frustration we feel when clients—even those with the best of intentions—don’t follow through. So the question becomes: can you take the time to diligently update, review, and manage your own plan or do you require that extra set of eyes to help you navigate those blind spots and hold you accountable? If falling short of helping clients achieve their goals is an unacceptable outcome, why should achieving yours be any different?
Sit at the Other Side of the Table
Still not convinced that planners need to work with other planners? Okay, what if I told you that working with another planner can actually help you improve your own business? Financial planning is a newer profession and there are so many different business models, niches, and processes out there. Haven’t you ever wondered what your client really experiences? This is the perfect opportunity to sit on the other side of the table. You will most definitely find at least one takeaway that could improve your business.
Basically, what I’ve learned in researching this topic is that there is no harm or stigma associated with working with another planner—because the answer is yes, doctors do see other doctors. The main obstacle is finding the right one for you, which again allows you to see things from a prospect’s perspective.
When I polled my network to find out who has a planner, I also asked how they found them. True to the financial planning culture, many were happy to share their experiences and lessons learned. Here are just a couple of them: (1) we all have friends in the business; find one and offer to exchange services, and (2) many of us have planners that we follow on social media or we look up to. Don’t be afraid to reach out to them.
Thanks for staying with me to the end. While thinking about this topic, one thing became clear: planners are passionate about helping others. It is this passion that drives us to find new and creative ways of doing things that help us reach such a diverse group of people.
Now, before I go, I’ll leave you with this question: can you think of a good reason a planner shouldn’t have a planner?
Melissa Thier, CFP®, is a financial planner in the Verona, N.J. office of MSFS. She is passionate about helping women decision-makers overcome their fear of financial planning and simplify their money journey. In her spare time, Thier works in her native garden, focuses on animal welfare, and does yoga.
This article was originally published in the November 2020 issue of the FPA Next Generation Planner. If you are interested in writing for the FPA Next Generation Planner, which is designed to provide relevant and helpful information to professionals in the fi