Planner woes are bigger than ever

Vanessa Stoykov,  creator,  No More Practice

After listening to hundreds of advisers and what you think, I can say unreservedly that the biggest challenge most advisers face is rising costs. The ability to make money is a pretty integral part of any business, big or small.

We're seeing that you are most worried about rising costs, and it will be the challenge of us and other service providers in the industry to provide information and education on the most cost effective ways advisers can build their business.

It would seem some of the biggest challenges for advisers moving forward will be how to service and grow the clients that are profitable and fit with your niche, and how to deal with the rest of the client base – there is an obvious duty of care that flies directly in the face of running a profitable business. Which is where the dilemma lies.

Without subsidies from our government, it is difficult to ask planners as small business owners, to take on unprofitable work. Ultimately a business needs to create profit to stay alive. So how will the rest of Australia, who don’t fit into the model of profitability, access advice?

In many ways, there are more questions than answers at the moment. Technology will surely play a big part of the transformation of the industry, but everyone knows that the job of coaching people on their money plan is intrinsically a human one – as we will demonstrate more than ever in our latest Secrets of the Money Masters, being released in May this year.

More and more it seems that super funds will be picking up the rest of Australia for advice - and many of you may be thinking about how you work for a super fund, or with them. Because they are the only businesses in Australia outside of banks who have the scale, to make the cost of advice available to the masses.

I’m sure I am telling you nothing new – but it must be good to know that so many of your peers are thinking the same thing you are.

As always, we appreciate your support and your feedback – and I hope the people that answered first and receive my book enjoy the read. I know you will see yourselves in the planner character. They are definitely the hero.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

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Alan Freshwater

05/03/20

I agree that super funds will be positioning to pick up more advice needs. The problem there is that Super is only one part of a clients financial needs. Other needs include: estate matters, investment,aged care,cash flow, budgeting, generational wealth transfer, insurances, Centrelink etc, Overlay all this with the critical (and increasingly important) client coaching, mentoring, dare I say counselling, and it is clear that your average super fund will fall well short. There is a massive need for advice in our communities but a dwindling supply primarily because the industry has 'bashed itself up' with an internal war for 10-15 years and is now the product of over regulation.

johnny Johnny Farquar

05/03/20

The increase in work load (red tape) and the reduction in commissions for risk insurance has become unprofitable. The best interest of the Australian people has been ignored by polititions and the greedy pwereful banks and insurers and superfunds have reduced the quality of life for the Australian people. Another industry destroyed by corruption let the Australian people burn burn burn . More people for the dole not more jobs thanks a lot

Grahame Davis

05/03/20

One of the biggest hurdles I am finding and I know it is going to get worse is having the TIME to be able to do all the regulatary requirements, plus ongoing education requirements, FASEA, ASIC, ATO (SMSF), APRA - all of these organisations are adding to the workload.... Personally I love what I do, for forty years I look forward to getting up in the morning to work. But presently I am working 15 hours per day x 4, and one day by 12 hours and 90% Saturdays at least 6 hours. I cannot afford a PA, but time to me is the issue followed a close second by the rising costs... I could go on, but whats the point, apart from yourself no-one is listening or the slightly bit interested!!!!

Scott O'Donnell

05/03/20

There is no duty of care to unprofitable clients -- if they don't make you money then you don't help them. It's the same approach lawyers have used for years and that is apparently what we are supposed to be aiming to replicate.

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