Operating an advisory business is a little like hosting a radio talk show; you never know what question or situation you're going to encounter. Both require a broad base of knowledge or at least a quick reference to the answer, as no one can possibly know everything about every issue. If your business model is strictly investing clients' money, you must stay abreast of the markets and the multiplicity of investment vehicles, an area which is ever expanding. However, when you add financial planning to your offerings, and comprehensive planning at that, you add a layer of complexity which can challenge the most astute advisor.
One more point to make. If you do not engage clients in financial planning, and you work for a company that has a "back office" for selecting investment choices, then your load may be slightly less, that is, if you aren't under constant pressure to continue bringing in new clients. Enough ranting, let's move on.
This week, I received a referral from a current client. This referral had engaged a nationally recognized company to prepare a financial plan for him and his wife. They said it would take about two weeks to complete. Two weeks later, no plan. Explaining that there was a slight delay, they assured the client that it would only be another couple of weeks. Two weeks later, still no plan. It was at this point that the client bid them a not-so-fond farewell. Now this client is engaging me to do what this other firm was hired to do. Without divulging any personal information, let's take a look at what's different about this situation.
