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Practice Knowledge For Financial Planners Who Are Just Getting Started

Daehong Kwon, CFP, KoreaBy Daehong Kwon, CFP

Because the financial planning industry is only 10 years old in Korea, the first generation of financial planners is still in the stages of studying, learning, and growing. Hopefully, in the next 10 years, we will see more progress and have wisdom to pass on to financial planners who are just getting started. I could talk about financial planning to no end and have so much to share, but there are two tips related to work practice that I would like to highlight above all else in this blog.

Join a Professional Team

There is a saying, “If you want to go far, go together.” I believe when it comes to financial planning, it is more advantageous to work in a team than to work alone.

When financial planning was first established, planners in Korea would work alone or be supported by just a few secretaries. Only now are planners starting to take advantage of having professional teams.

Financial planning covers a wide range of knowledge areas and undergoes multiple phases throughout the six-step process. Because of this, there is a lot to do behind the scenes in addition to speaking with clients. No matter how good a planner’s education is or how motivated they are, they run the risk of low efficiency if they decide to carry out all the work alone. Professional teams benefit from synergy which improves overall efficiency and morale.

The advantage of teams can be observed by looking at the manufacturing industry. Even small factories have manuals for specific labor divisions so workers can concentrate on a specific skillset. Economics classes also teach us that everybody has strong points relative to others; this is called “the rule of comparative advantage”.

I would recommend creating a team that is run by a veteran financial planner who assigns responsibilities. If there isn’t a veteran on the team, then start allocating responsibilities based on strengths.

Most people, with exception of a few, aren’t going to be a perfect fit with any given team. It is important to make sure you’re a match for the team you’re on. One should take choosing a team just as seriously as they would if they were choosing a spouse.

Focus on a Specific Client Segment

One factor that distinguishes a financial planner from an insurance salesman is client segmentation. While insurance salespeople undoubtedly benefit from more customers or contracts, financial planners have a different approach.

Financial planning provides various products and services to an individual, as opposed to selling one product to the masses. Financial planners are best off having an appropriate number of clients who share a certain set of characteristics chosen by the planner. While it is important to accumulate experience and knowledge about many different types of clients when getting started, one should focus on a market segment eventually. Some financial planners have a knack with particular clients for a variety of reasons. The goal of becoming the best financial planner for a specific group of clients will lead to success faster and easier than to pursue recognition from all kinds of clients.

1 comment to Practice Knowledge For Financial Planners Who Are Just Getting Started

  • Hi Deahong,

    Great article you have here. Not to long ago I also wrote about this subject. Mostly on how to be successful as a financial planner. Please check it out: seebeyondnumbers.com.

    Hope that we can stay in touch.

    Regards,
    Ronald Sier

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