In elementary school, my dream was to make it to either the MLS (soccer) or the NBA (basketball). However, as I grew more self-aware and realized my body type wasn’t quite suited for going up against the likes of LeBron James, I shifted my aspirations to becoming a teacher. Inspired by my mom, one of my heroes, who was a dedicated teacher, I admired the privilege teachers have in conveying truth and understanding to a world that desperately needs it.
In high school, another career field caught my interest: financial advice. At 15, I had the opportunity to shadow an advisor, observing and asking questions about the fascinating world of finance. From that day on, my mind was set on this career.
Today, we’ll briefly explore the financial advice industry. Whether you’re a college student considering a future career or you simply like to learn about money and finances, this will provide a bit of “inside baseball” on the world that we (financial advisors) live in.
Jump in to discover why we love this industry so much…
Human Flourishing
In a broad sense, the goal of most professions is to enhance human flourishing. A few years ago, a well-meaning friend asked me about the role of a financial advisor, wondering, “So… is your goal just to help the rich get richer?”
The reality is quite the opposite. We witness meaningful life changes because of the unique position we hold. Whether it’s facilitating gifts to children or charities, helping someone retire and move abroad for mission work, or guiding a client through the transition to self-employment after an unexpected layoff, we relish the opportunity to partner with clients in impactful ways.
Confusion to Clarity
Our world is brimming with confusion. Advertisements manipulate our minds, we are inundated with more information than necessary to make decisions, and synthesizing this information into sound choices can be challenging.
In the financial industry, we encounter terms like QCDs, RMDs, 60/40 portfolios, and Standard Deviations. Simplicity is desperately needed.
Advisors are uniquely positioned to simplify the complex, transforming confusion into clarity.
Safari Guide
In past TOM articles, Trevor Cummings has suggested that advisors are not ticket agents but rather safari guides. If I were to take a trip to Africa to see lions and elephants, I certainly wouldn’t go without a guide.
Similarly, the world of investing can be daunting. Advisors don’t just hand out tickets and wish investors “good luck.” Instead, we act as safari guides, navigating the wilderness of investing, tax planning, estate planning, and all other financial realms with our clients.
For some, the greatest value a financial safari guide provides is preventing catastrophic financial decisions. This could mean stopping someone from bailing out of the market at the wrong time or preventing rash spending decisions. These are choices that can derail one’s financial future, and it’s incredibly fulfilling to know we’ve played a part in encouraging someone to stay the course or stick to the plan.
Head and Heart
One could easily search online for “the optimal portfolio for a 55-year-old,” “how much should I have in my emergency savings?” or “should I set up a business retirement plan?” An Excel enthusiast might even create their own retirement planning spreadsheet.
However, financial decisions don’t solely hinge on spreadsheets and numbers. Financial advice is both an art and a science, involving both head and heart. We all have different personalities, varying past experiences, and unique life circumstances.
The essence of financial planning is applying theory and numbers to make meaningful decisions for individuals. When someone asks, “When is the best age to take Social Security?” I could provide numbers, percentages, and breakeven ages—all of which are important. However, a thoughtful advisor might recommend client A take it at age 62, while advising client B to wait until age 70.
Personal financial planning is just that—personal. For more, see a previous article titled Beyond the Numbers.
Ever Evolving
My wife and I are eagerly anticipating the arrival of our fourth child this March. Recently, we attended our first birthing class, led by an experienced instructor who has been supporting births as a doula for about 25 years. After a 12-year break, she returned to find that the essence of childbirth remained unchanged. There were no new trends or additional training required.
In stark contrast, the financial advice industry is in a constant state of evolution. Secular shifts can transform the landscape every decade, legislation may change annually, and new market information emerges every minute. For those who thrive on continuous learning, our industry offers an endless stream of new knowledge and opportunities.
Quarterback
While I never achieved my dream of becoming a professional basketball or soccer player, I did find my calling as a professional quarterback—a financial quarterback, that is!
Clients place immense trust in the firm managing their hard-earned wealth. It’s a significant responsibility to be accountable for someone’s financial success (or setbacks). But just like a good quarterback, a true financial advisor embraces responsibility and accountability.
A skilled quarterback might not be the fastest on the team, but he knows how to get the ball to the fastest player. He might not be the strongest, but he ensures the strongest players protect him. He coordinates every player, ensuring they are in the right position and running the correct routes.
Similarly, a financial quarterback understands his team and knows how to leverage their strengths effectively, whether it’s partnering with a CPA, a lender, an insurance professional, or an experienced attorney.
Heart Emojis
I love this industry. I love that it contributes meaningfully to human flourishing. I cherish walking alongside clients, navigating transitions, and witnessing financial confidence grow year by year. I enjoy hearing aspirations and dreams and crafting plans to achieve these ends. Most of all, I love the clients we get to serve.
That’s it for 2024. We’ll see you again for more of our Thoughts on Money in 2025!
Blaine Carver
Private Wealth Advisor
bcarver@thebahnsengroup.com
Trevor Cummings
PWA Group Director, Partner
tcummings@thebahnsengroup.com
