Product-Driven Financial Planning 'Dead on Arrival'

Hayden, Vern C.
June 2005
Journal of Financial Planning;Jun2005, Vol. 18 Issue 6, p36
Academic Journal
The article presents the author's view on product-driven financial planning of a certified financial planner (CFP). Well, I met with a guy at the bank, we got into planning for my retirement, and it looked like I was going to come up a little short. That is when he tried to sell me some mutual funds and an annuity, giving me the idea this would make up the difference. All of a sudden, it seemed more important to him to make a sale than solve my problems. I never went back. As I look out over the rugged landscape of financial planning today, originally, all the insurance companies were totally opposed to financial planning. Eventually, they realized they were being preempted by a new breed of planners who were gaining market share. The same thing happened with the large wirehouses, one of whom apparently has paid several brokers a significant amount of money to get their CFP certification. Some marketing genius figured out they could sell more stocks, bonds, separate accounts, annuities, and mutual funds if they could use the credibility of the CFP certification to do it. Of course it works, right up to the point where the lack of disclosure about changing hats solicits a transaction and commission. For those people, the sun just went down on the terms financial planner and CFP. Yet these firms continue to advertise a relationship that provides you with a lifetime of solutions based on your total financial picture.


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