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Find Your Passion and Purpose as an Independent Financial Advisor
- 2. Find something you’re passionate about…that you believe in – Bill McNabb, Vanguard CEO What will be your mission? 01 Opportunity
- 11. of clients feel their interests come second to corporate interests or advisor compensation 02 Need
- 12. An advisor must place his or her interests below that of the client. It consists of a duty of loyalty and care, and simply means that the advisor must act in the best interest of his or her client. Fiduciary Instead of having to place his or her interests below that of the client, the suitability standard only details that the broker-dealer has to reasonably believe that any recommendations made are suitable for clients. Suitability VS. 02 Need
- 13. Conflicts of Interest 12-b-1 fees Dual Registration Revenue Sharing Incentive Trips Production Bonus 02 Need
- 14. clients are unclear on what fees they pay02 Need
- 15. This is our mission 03 Mission
- 16. 03 Mission To be the beacon for independent, objective financial advice for individuals and families
- 17. To be the champion of financial services delivered in the public interest 03 Mission
- 18. To be the standard bearer for the emerging profession of financial planning 03 Mission
- 19. 302,000-Financial Advisors 122,000-Fiduciaries 46,000-Comprehensive Advice NAPFA Advisors 77,000-Fee Based 03 Mission 1,846
- 20. 03 Mission
- 21. Comprehensive03 Mission Cash Flow Investment Management Tax Planning Retirement Planning Insurance Estate Planning Financial Planning Your goals, Our Expertise
- 22. Personal finance is more personal than finance – Tim Maurer 03 Mission
- 24. 03 Mission Student Affiliate: NAPFA Engage Mentor Engage NAPFA Events NAPFA Advisor Magazine E-Newsletter Member Discount Program Annual Dues: Full-time Students $35 Part-time Students $150
- 25. - Multiple scholarships - Free webinars 03 Mission Discover Contribute Advance
- 27. “The only way to do great work is to love what you do. If you haven’t found it, keep looking. – Steve Jobs Don’t settle”
Editor's Notes
- Presenting advisor should share their own WHY story: -WHY they chose this industry -WHY providing fee-only advice makes a difference in client’s lives -Provide a compelling, specific example of how you helped and WHY is it specific to how a NAPFA advisor is different. Then what is NAPFA The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors—highly trained professionals who are committed to working in the best interests of those they serve. Since 1983, Americans across the country have looked to NAPFA for access to financial professionals who meet the highest membership standards for professional competency, client-focused financial planning, and Fee-Only compensation.
- Enough about me/us, let’s turn to you all here. With your whole working life ahead of you, ask yourself what will be your mission? What do you want to accomplish? Do you want a career that simply makes you money or do you want to change the world. How about taking on a mission that makes a difference in the lives of others and for your own family? The CEO of Vanguard, arguably one of the most successful and client-centric financial firms in the world was recently interviewed and shared the following insight He recalled a recent talk he gave to a class at Wharton, telling the students that they were smart and would make a good living. Then somebody asked him what constitutes the key to success. “Find something you are passionate about,” McNabb answered. “Something that gets you up every morning and that you believe in. And look for a match from a values perspective.” https://www.washingtonpost.com/business/economy/value-added-at-vanguard-perks-are-rare-and-everyone-enlists-in-the-swiss-army/2012/09/23/fcc0324c-0422-11e2-91e7-2962c74e7738_story.html
- There are a myriad of choices leaving college, yet few find work that is truly fulfilling. In fact, only 38% of Americans feel fulfilled in their current employment. http://parade.com/227302/viannguyen/only-38-percent-of-americans-feel-fulfilled-by-their-work-more-survey-results/ What would your ideal line of work look like? What would it enable you to do?
- How about a career that allows you to impact the lives of others, directly and very tangibly? Source: Building a Better Business by Mark Tibergien
- A career where you can work for yourself. A flexible schedule and location independence. Believe it or not, some NAPFA planners can operate their business providing financial planning advice while they travel for months at a time? Some decide to ex-patriate but still retain their clientele. Can you think of another industry where you have that flexibility? Source: Building a Better Business by Mark Tibergien
- How about a career where your subject matter expertise is vastly broad and changing rapidly. Source: Building a Better Business by Mark Tibergien
- Source: Building a Better Business by Mark Tibergien
- Speaker should engage the audience: For those of you not interested in this field, care to share why? What is your perception of this industry currently? Don’t be shy! Address the questions, comments, and concerns if there is time. Recent research has discovered that many avoid this industry for the following reasons: Don’t feel they are good enough at math Don’t want to be a salesperson Don’t trust the industry is doing what’s right for individuals Fee-only financial planning is not any of the above characterizations which could describe Wall Street. NAPFA fee-only planners are not Wall Street and while many financial planners do have an advanced finance degree or MBA, it is not a requirement, nor is the job really about crunching numbers all day. It does require you to have years of cold calling in a boiler room under your belt, and many are self-employed, not beholden to a firm’s commission or asset based client acquisition goals. We believe how we practice eliminates most all conflicts of interest so doing what is right for our clients is all we’ve ever done. NAPFA planners understand the personal finance is more personal than finance. Money is a tool to help our clients live their best lives but not the reason for their existence. While similar messaging has been the hallmark of Wall Street for decades, our planners live it with truly transparent, client-focused relationships. This is borne out in our values as an organization. Address misconceptions and assumptions we know many millennials have regarding the industry and why fee-only planning is not that. Let’s look closer at the world as it is now. We want to change the current state and we believe it’s a mission
- There is huge need for education and objective advice in this country. Some have been educated and can DIY but for many, it’s not something we were taught in school or maybe from our parents. The financial services industry has not been much help either. A November 2013 study by the Consumer Financial Protection Bureau showed that the financial industry spends about $17 billion annually to market its products, whereas the federal government, nonprofits, schools, and corporations combined spend about $670 million on financial education. That comes out to about $54 per person per year spent on financial marketing versus a little more than $2 per person spent on financial education.
- Few trust their advisors to do what’s right for them: -83% -http://advisorhub.com/almost-two-thirds-of-clients-dont-trust-advisors-to-act-in-their-best-interest-poll/
- Americans are often surprised to learn that not all advisors are required to work in their best interest at all times. There are advisors that work under the fiduciary standard while others work under what is known as Suitability. Starting next year, many advisors will begin to be required to work in a fiduciary capacity when it comes to client’s retirement accounts only. Outside of that, in taxable savings for example, they will not be required to be fiduciaries and may still recommend products under a BICE. NAPFA advisors have been fiduciaries from the beginning and have no other way of working with clients. That makes things simple-we act in your best interest, end of story. Our members sign an oath in writing. Intro the upcoming video: “If you’re at all unclear about the difference, let me share a brief video with another way to understand this key difference”. Read more: Choosing A Financial Advisor: Suitability Vs. Fiduciary Standards | Investopedia http://www.investopedia.com/articles/professionaleducation/11/suitability-fiduciary-standards.asp#ixzz4FdzhZ5in Follow us: Investopedia on Facebook
- Providing financial advice is a valuable skill/service but the lack of transparency can mean there are products sold that benefit the advisor, sometimes more so than the client. The conflicts of interest are numerous including: Much of the industry are primarily financial salespeople with warm and fuzzy titles that don't accurately reflect what their primary goal is – generate revenue with transactions or gathering assets in "managed money". Nothing wrong with making a living here in America but as a consumer, it’s difficult to know if an advisor is working in your best interest.
- Few understand what and how they pay for advice: -63% -http://www.financial-planning.com/news/many-clients-have-no-idea-how-high-fees-are-will-robos-cash-in
- The previous slides and data should disturb you as it does those in the industry. We want to change the world of financial services as it stands today: provide education and objective advice that is free from the conflicts of interest that has plagued the industry for decades.
- NAPFA members live by three important values: To be the beacon for independent, objective financial advice for individuals and families. To be the champion of financial services delivered in the public interest. To be the standard bearer for the emerging profession of financial planning. We call it the Power of Trust. What does the Power of Trust mean for you? Read on to learn more about NAPFA and what sets us apart.
- http://loringward.com/why-you-are-not-like-most-financial-advisors/?utm_source=linkedin&utm_campaign=dbp&utm_medium=update&utm_content=why-you-are-not
- Now you know there is an opportunity, there is definitely a need and we’ve shared our mission to address that need.
- NAPFA Genesis is a peer-to-peer networking group designed to encourage professional growth and development among NAPFA members who are 33 years old and younger. As part of their membership, all NAPFA members, affiliates and students under the age of 33 are automatically enrolled in NAPFA Genesis. Anyone interested in advancing their career, or lending a hand to those who are starting their career, is invited to participate in NAPFA Genesis. The group is focused on three primary objectives: Discover: Access information and resources about Fee-Only planning and how to serve clients through adherence to a strict fiduciary standard. Contribute: Share tools and resources and collaborate to advance themselves and the Fee-Only financial planning profession. Advance: Access to current job postings and a network of professionals willing to provide mentorship to peers.
- NAPFA Mentor Engage reflects our commitment to your professional development and the fee-only financial planning community. Find and connect with other NAPFA Members. Grow professionally and give back to the industry. Your mentor or mentee can be right down the street or on the other side of the world. Share best practices as you guide the next generation of advisors into the world of fee-only financial planning.
- If you want to help us change the world, consider joining us on this mission. We’ll leave you with this great quote from Steve Jobs. We are passionate about our work and love what we do. No matter what you decide to pursue in your professional endeavors, make sure it’s something you love. Find a mission that is fulfilling to yourself personally but also leaves the world a better place because of your contribution. Thank you all for you time and attention.