Financial planning can be a difficult process. Many individual investors are not sure how they should handle their money in order to create prosperity at all stages of their lives. Having a qualified financial planner like Jason Vanclef can help investors take advantage of diverse opportunities and make their money work to their best advantage. Vanclef explains the benefits of different financial planning models and how they can promote growth in any portfolio.
Individual Planners
The first type of financial planning model is that of the individual planner. This person does all of the work in client support and planning the portfolio. Individual planners are typically found in insurance and in independent practice. Advisors are on their own, and they choose what advice to deliver, how to create the best plan for each client, and whether they need to engage the services of a paraplanner.
Individual advisors have a hands-on approach with their clients. This enables them to work closely with the client and understand their needs. Individual planners also have the advantage of knowing the client’s entire financial picture.
The advisor’s disadvantage is that they need to spend a significant amount of time actually balancing and working on the financial plan for the client. They are not able to spend as much time looking for new clients, and they have a lower number of clients than other types of financial planners.
Central Planning
The central planning model is used for larger companies and individuals with a great number of diversified assets. In this model, a planning department takes charge of the financial activities while the advisor is the face of the firm. This model means that more people are involved in the planning, which can be good and bad.
Multiple planners working together are less likely to overlook mistakes, and they can support each other while working on a variety of projects. The central planner does not know the company or the individual as well and may have to ask a great deal more questions than the individual planner.
Central planning advisors can often take the role of a financial coach. They are prepared to help the client build their financial future one step at a time.
Supportive Planning
Supportive planners take a hybrid approach to individual and central methods. Individual planners who have a few employees fall under this model. Central planning teams are also able to step in when an individual advisor finds that the plan is too complex or sophisticated to handle.
This approach works best in many situations since it preserves the advantage of the individual planner’s deep knowledge of the client and the agility produced by working as a team.
This efficient model provides a solution to many of the problems that come up while making a financial plan, but it is not a cure-all. Advisors need to be able to work quickly while they are gathering the data necessary to process the plan. The team of central planners needs to be able to complete a partial plan and to make sure that the information is communicated to the individual advisor, who will then pass it along to the client.
Consumer-Driven
This method is the isolated approach and takes the human planner’s advice and expertise out of the situation. “Robo-advisors” have the ability to plan some goals for the consumer, but in my opinion they should not be relied on for a full financial plan. These systems are programed by analysts who will never sit down with the client to learn the intricacies of what they need and will allocate investments in general broad categories. If a client’s situation doesn’t fall into the general broad strokes this type of planning will not work. For instance, when a reverse mortgage might make perfect sense for a couple but Robo-Advisers do not make this suggestion. This is where a skilled adviser can help them avoid serious mistakes and pitfalls. Expert guidance is a must when creating a financial plan.
Financial Planning Models for Prosperity
These different types of financial planners are all available to the business or individual investor. Each type has its own risks and benefits. The “happy medium” among these plans is the supportive planning model. This combines the expertise of a team of advisors plus a friendly face with whom to work one-on-one.
Jason Vanclef recommends that all investors use the advice of financial planner. Financial planning is too important to leave to chance, and the average consumer is not prepared to undertake the task by themselves. Vanclef’s book, The WealthCode 2.0- How the Rich Stay Rich in Good Times and Bad, was written to educate investors on personal financial planning and should be used in conjunction with a good financial advisor.
Securities offered through American Trust Investment Services, Inc. (ATIS) Member FINRA/SIPC. Investment Advisory Services offered through Delta Investment Management, LLC.(DIM) ATIS and DIM are not affiliated entities. Vanclef Financial Group, Inc. (VFG) is not a broker/dealer or Registered Investment Advisor. VFG is not affiliated with either ATIS or DIM. Vanclef Financial Insurance Services: CA License #OF13092. Additional information can be found at www.brokercheck.com.
Share
Contributors
