Marketing in Disguise?
Table of Contents
Many financial “plans” aren’t about your best interests-they’re about the advisor’s commission.
- Financial plans aren’t always objective; they can be tied to sales goals.
- “Free” planning frequently enough comes with strings attached, like product purchases.
- Static plans fail to adapt to life’s certain changes.
- A true financial plan is a continuous process, not a one-time presentation.
Consider insurance-based financial planning. Insurance products, frequently enough complex and intimidating, are tough to sell directly. Advisors frequently lead with a comprehensive plan-a long-term projection encompassing retirement,legacy,and even mortality-before “magically” arriving at a solution: a permanent life insurance policy laden with riders and assumptions. In these scenarios, the plan doesn’t answer your questions; it steers you toward a predetermined outcome.
this isn’t financial planning; it’s choreography, and it’s particularly effective when leveraging emotionally charged topics like protecting loved ones. When fear and affection are involved, critical thinking frequently enough takes a backseat.
the Cost of “Free” Advice
The reality is, if financial planning is linked to selling insurance or managing your money for a percentage of AUM, objectivity is compromised. Advisors are incentivized to prioritize outcomes that benefit their revenue stream.
AUM-based plans are prone to:
- Keeping assets invested, even when debt repayment or immediate spending might be wiser.
- Discouraging recommendations for solutions outside their firm’s offerings.
- Presenting complexity as a justification for handing over control.
Insurance-based plans, conversely, tend to:
- Exaggerate risks that insurance can address.
- Position expensive products as essential.
- Elevate permanence over adaptability.
In both cases, the “plan” serves to justify the underlying revenue model.
Snapshots,Not Roadmaps
Moast financial plans are static,resembling detailed snapshots rather than dynamic roadmaps. They appear authoritative, but real life rarely adheres to fixed assumptions. Jobs are lost, children return home, parents require care, tax laws evolve, and markets fluctuate wildly. People experience illness, divorce, marriage, lawsuits, promotions, and shifts in priorities.
A genuine financial plan must be continuously revisited and adjusted. Or else, it becomes obsolete the moment it’s finalized. as Electric Light Orchestra famously sang, “It’s a livin’ thing.” Your finances are, too.
Planning as a Process
true financial planning isn’t a product you “buy into”; it’s a collaborative process you work through over time.It’s regularly reviewed, adapting to your evolving priorities. It doesn’t assume permanence where none exists, nor does it offer one-size-fits-all solutions.
Most importantly, a real plan isn’t designed to sell you anything. When a plan prioritizes product sales or AUM relationships, you’re not being planned for-you’re being monetized. And buying into the wrong financial plan? As ELO would say, that’s a terrible thing to lose.
