Jason and Alex pick up where they left off on last show with other financial advisers as their target audience. They begin by reminding listeners that the Financial Detox team at Intelligence Driven Advisers have a purpose to educate, empower and eliminate toxic financial advice. This purpose rings true in their communication with advisers and investors alike. They begin by addressing the fact that the mega firms that we all know do not tend have a guiding investment philosophy. Instead they are more like a grocery store that has a wide spectrum of products that they offer. Advisers are the shoppers, able to select any product they would like in these stores full of various product types. Their decisions determine what the end client experience will look like. Through both bear and bull markets they are on their own in shopping and building out an investment philosophy. Imagine what the client experience must be like. Another real problem exists with the conflicts of interest that are prevalent in the methods of compensation from the product manufacturers to the firms and their sales force. If one product pays a firm, or their sales force, more than another there will always be a bias that could alter the recommendation given to the client. The show also goes into the importance of establishing a business plan built on the foundation of purpose, values and a vision. Jason shares the framework of the IDA business plan and gives some examples of how decisions are made and based off of it. At times like these when a crisis hits that plan is vital to fall back on and guide us through it, all the while adhering to discipline and processes that were built to stand up to good times and tough ones.
In this show you will learn about:
- The Purpose, Values and Vision of the Financial Detox team at Intelligence Driven Advisers
- How financial advisers are like shoppers in a grocery store and why could be a problem
- The importance of having a business plan for your advisory