42 - Clients or Customers?

Financial planning functions as an ongoing, iterative process rather than a static, one-off product. The industry faces significant pressure as regulators scrutinize firms charging ongoing fees without delivering substantive service, exemplified by recent high-profile compensation cases. True professional advice requires holistic, long-term engagement, contrasting sharply with "asset gathering" models that prioritize onboarding over client outcomes. Edward Leffler’s invention of the mutual fund a century ago remains the bedrock of this profession, enabling efficient access to global markets. Effective planning relies on continuous review and adjustment, treating the financial plan as a living document that guides clients through life’s transitions. Ultimately, firms must prioritize transparent, value-driven relationships, as transactional advice models often fail to provide the necessary support during market volatility or significant life changes.