The role of the traditional financial broker has received some mixed press over the last few years and sometimes justifiably so. Perhaps one has to ask if they still have a role to fulfil, what with all of the “direct” routes being offered to the public with regards to their financial, retirement and tax planning. The short answer is YES, in fact they are more important than ever…..but….
I think that the role has to be redefined, historically brokers focused on selling policies, this was due to the commission earnings and also the pressure from insurance companies for figures and results above all else. This has led clients to sometimes suffer the negative consequences of products that were not ideally suited to their true needs.
The role of the professional broker is now joker slot thankfully (or perhaps hopefully) very different. The goal should not be about “selling a policy”, but rather to build a long term interactive relationship.
This rather obvious statement is not only misunderstood by people within the industry but also by the public.
As with any good relationship, it requires the combined effort of both parties. A lot of people feel that planning their financial goals and protecting their hard earned assets and earning capability is like going to the dentist. An unpleasant chore that needs to be done as quickly and cheaply as possible and then forgotten until the next “ache” comes along.
To get the results that you want, you need to involve your financial planner in your life, business and career. If your planner does not know what is happening to you, how can he ensure that your portfolio is correctly structured to meet your changing needs and circumstances?
Today’s financial planner has to want to be involved with you. By this I mean he must be passionate about a long term detailed involvement with you as his client. The obligatory phone call on your birthday and policy anniversary is not being involved, it is being lazy and disinterested. I mean providing you with consistent ongoing meaningful value adding contact and tools to help you achieve your goals. Professional planning is not as expensive as people perceive it to be, nor is it only for the wealthy. It is an absolute necessity for everyone.