I have done many financial plans for fee-paying clients. Often at the end of the plan, I’ll make some recommendations. Most of these recommendations require the clients to do it themselves simply because I cannot do it. For example, revoking unnecessary life insurance nominations is one example. Other times it involved buying a product directly from the product manufacturer. I believe that to achieve financial independence, everyone must be prepared to do their part.
They cannot outsource everything to a financial planner. The financial planner can clarify the direction and provide the recommendations. But at the end of the day, it is the clients that own their own wealth – they must do their part by doing the DIY bit. They can ask me whom they can ask or approach to do the DIY and I’ll give them as much information as possible. But I cannot handhold all clients to do everything. There are some common transactions that I can refer to other professionals that I have prior arrangement with. But I don’t have referral arrangement in everything.
My approach in financial planning is this: I’ll make the best recommendations. If I can transact, I’ll oblige to transact it. If I cannot transact, I’ll refer the clients to external professionals whom I have prior referral arrangement with. But if I have no prior referral arrangement, clients must be prepared to DIY. If clients don’t want to DIY due to inertia, I am afraid they will never be financial independent because they cannot manage their own wealth “independently”.
My approach is radically different from other financial advisers in which they will only recommend products and services which they can transact. Most of the time, my recommendations involves transactions which the clients have to do it themselves simply because there are MANY things which a financial adviser cannot execute. It is a fallacy that an IFA can do all things.
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