Fast Forward Five Years…
Let’s run a thought experiment.
Fast forward five years. You’re in a client meeting. You open your mouth to discuss pensions, tax wrappers, withdrawal sequencing, CGT harvesting, protection needs, trusts, tax allowances, estate planning or investment asset allocation.
The client stops you. “Don’t worry about that. The machines have it covered.”
Every calculation is instant. Every rule is updated in real time. Every tax angle is optimised in seconds. Every product comparison is flawless. Every piece of technical planning is available on demand, low cost, accurate, and beautifully presented.
If your value was built on knowing more technical knowledge than the client, the game may be over. If your proposition was translating complexity, explaining legislation, or being the human search engine for financial rules, you may also be in trouble.
It's safe to say that the machines will be exceptional at that.
But is this bad news?
We know that clients do not lie awake at 3 am worrying about pension annual allowance carry forward calculations.
They worry about:
slowing down at work
ageing parents
having “enough”
helping children without damaging them
regret, identity, purpose, fear, guilt and uncertainty.
The world is complex, and technical planning will always matter. But, given the trends in computing power, our roles are likely to shift.
In the future, the role of an adviser may be:
less about answers and more about nuance in judgement
less about products, more about perspective
less about information, more about interpretation
less about optimisation, more about behaviour
To thrive in this world, advisers will need to become strategic thinking partners, behavioural coaches, accountability partners, decision filters, life planners, the calm voice in chaotic moments.
Things are changing fast, but when machines can produce a technically perfect financial life plan, many clients will still want someone beside them to say:
“This is the right path.”
“You’re going to be okay.”
“Don’t panic.”
“Now is the time to act.”
“Now is the time to wait.”
As the science of financial planning becomes automated, the art of financial planning will become more valuable.
If you were banned from discussing anything technical in a client meeting, what are your clients paying you for? Are you becoming better at your art? That answer may define the next decade of your career.
