Continuing the theme of Praxis – Part 4 in an 6 part series

Aristotle said: “Whatever we learn to do, we learn by actually doing it (Praxis); men come to be builders, for instance, by building, and harp players by playing the harp. In the same way, by doing just acts we come to be just; by doing self-controlled acts, we come to be self-controlled; and by doing brave acts, we become brave.”

Personal financial planners, must not only have knowledge and experience, they most also possess ethics. And if we follow along Aristotle’s line of reasoning, ethics or “just acts” are acquired by ‘doing just acts/being ethical.’ And in financial services, ‘doing just acts/being ethical’ is a challenge. [Read more…]

Of elephants, blind men & financial planning —Part 1 in a 6 part series

The endless bickering over the regulation of financial planners is wearisome at best. It seems that every organization and entity is on this bandwagon: the Government Accountability Office, the Security and Exchange Commission, the Financial Industry Regulatory Authority, the National Association of Insurance Commissioners, the Federal Trade Commission and the Financial Planning Coalition. And the sum total of all their time, talent and treasure are the following findings: No single law governs providers of financial planning services. Therefore,

• Almost anyone can call themselves a financial planner.
• Financial planners may have an inherent conflict of interest in selling products from which they receive a commission or managing assets from which they will receive asset management fees
• Consumers are confused by the numerous titles and designations that financial planners may use.
These results are not new and are the same conclusions, which were made over 30 years ago! [Read more…]