The Great Reset: Are Financial Planners Missing A Massive Opportunity?

Here’s a shocking statistic: Over 30 million people, ten per cent of the workforce, have quit their jobs so far this year in the US. It’s called “The Great Resignation”.

They are starting new businesses, joining the trillion dollars’ gig economy’ or following their passion and purpose in other ways. Millions more join the entrepreneur movement to build SMEs to re-imagine their favourite future.

Yet, the financial planners stand by and watch. They switch on their standalone financial planning software tools and produce cash flow forecasts to flog retail investments. Solutions that ignore what’s going on. That fails to address the short-term cash valley caused by the Great Resignation. According to UK ONS, the object of their attention (financial assets) forms less than 10% of total wealth when including SME business assets.

ONS/ WAS define assets as items of value that can be converted into cash or consumed in some way, now or in the future.  They include financial assets, real estate, private pensions, business assets, and physical assets.

Financial Planners focus on selling regulated investment products to their clients whilst building recurring revenues by tapping AUM to generate business asset exit valuations to fund their dreams. Their plans are business asset building, whilst their clients tie in to get rich slowly schemes.

In the US, holding out as a financial planner only triggers Registered Investment Adviser if they are also a broker. Why peddle products? Why financially plan the regulated asset when you can financially plan total wealth? The whole financial ecosystem.

Turn the cash flow planning tools around to the problem 30 million people face—the cash flow valley created by the Great Resignation. As aspiring entrepreneurs reset, research, reskill, and rebuild their next wealth mountain. Answer the big question: “Have I got enough?”

Why bother continuing to create an expectation that the consumer will receive “advice services” requiring RIA and fiduciary duty. When consumers are more than willing to pay for fixed fees, you can cash flow model to answer the question, “Will me and my family be financially secure through this?”

Tell them what their financial future will look like when they improve their work-life balance.

Tell them to follow their passion and take on work that doesn’t feel like work, so they never wish to retire.

Create multiple nocturnal income streams and business assets for their financial future.

Yet, the closest we see in the US to proper financial planning is “advice-only” services that help consumers select the right purchase to implement. They still focus on the ‘solely incidental’ 10% of total wealth that is long-term. See the excellent example of Cody Garrett, the founder of Measure Twice Financial, an independent RIA based in Houston, Texas. Advisers, you can do better.

 Using An Advice-Only Approach To Grow With DIY Validators (kitces.com)

Why bother recommending others about the advisability of investing in, purchasing or selling securities when buying products is not the answer during this Great Resignation cash flow valley and only makes presenting problems (cash flow shortfalls) worse?

Turn the AI on the issue at hand, the 100% of total wealth pitted by the short-term cash flow valley created during the reset.

Use financial planning without being regulated as advisers at all, without violating Disclosure Obligations.

Why can’t financial planners offer comprehensive financial plans for a fixed fee? Be hired by the consumer to plan financially.

Financial planning is not financial advice.

If you are capable, well-trained, utterly unbiased, trying to render purely professional service for a fee. Be a fellow with competence and conscience, unlike the dealer financial planning for free in anticipation of commission.

Consider financial planning as a service unto itself.

Offer financial planning services to your clients and help them build back better.

Become non-intermediating financial planners.

The Academy of Life Planning is the world’s first network of non-intermediating financial planners. We are an award-winning SME that helps build financial SMEs to help develop even more SMEs through cash flow planning. Our proprietary modelling tool is HapNav – The Happiness Navigator.

Twice winner of the Best Financial Advice Support Network and twice winner of an Award in Recognition for Outstanding Contribution to the Finance Industry 2020 & 2021, by SME News.