Process Versus Product

Today I want to talk about the difference between looking for a product and engaging in a process.

One of the reasons the financial planning industry has gotten such a bad reputation is that much of what you hear about relates to products. Financial planning, when done correctly, is about a process, the plan. How we populate the plan is the last step. We don’t start with finding good mutual funds. We start with a financial plan, a clear process for determining where you are today and where you want to go.

After we’ve got a plan, we determine what products fit the plan. Remember: financial planning is about a plan and not a product.

http://www.vimeo.com/4175102

Google Variable Annuity Search

By Carl on 04.15.09 > Link

Tagged as: financial planning, process, product

  • A product sold outside the context of a plan or strategy is simply a commodity. This is true whether you're talking about widgets or variable annuities. The plan and process is what gives the product it's meaning to the buyer.

    Unfortunately, Wall St. is one big product sales machine. In fact, when I worked at Merrill Lynch, my regulatory licenses were really just a license to sell stuff to people.

    I know a lot of former associates that give a lot of lip service to planning and process, but when it comes right down to it, they're really just trying to sell you something.

    There are lots of honest people working at Wall St. firms. Unfortunately, they seem to be the exception and not the rule, in my experience.

    Great message, Carl.
  • ChadCastle
    Carl,
    Thank you for this great post. I see the product vs. process work its way out every day in my office. It is interesting that the "product" part of the dicussion has become some oversold that when prospects come to my office they often ask early on in our initial meeting what "products" I have to offer and why or how my "products" are different from the competition.
    Chad Castle
  • "Investment success is about having a disciplined process...and sticking with that process. The product is really sort of the last step and, quite honestly, it's the least important step."

    *nodding emphatically as I watch this*
  • Bravo!
  • Tom S
    Where is the vid?
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