Many times I have heard financial planners and financial institutions refer to only working with high net worth individuals kinda implying that the planner is only working with select people which, in the minds of the planner elevates his personal ego. The truth is that the planner is working for higher commissions and the more money they move the higher commissions they make.
This being said, if the planner was working for the people they would not care whether a person has a high net worth or not, everyone needs help. No matter what the income of the person, the planner should be working for the client, regardless of how much they make.
I have written before there are four major rules that the financial institutions and planners operate from. These rules are essential in the survival of the financial institutions. The rules are!
Rule 1. The financial institutions have to get your money.
Rule 2. The financial institutions have to get your money on a systematic and on going basis.
Rule 3. The financial institutions must hold on to your money as long as possible.
Rule 4. The financial institutions must give it back as little as possible.
If the financial institutions violate these rules they are out of business. So when a planner says they are working with high net worth people this is what they are looking for. They want the money to put into the financial institutions to grow the wealth of the financial institution.
Now is this wrong, no only if the invested money and the 4 rules are in the best interest of the client and not the institutions. The only way to know this is to have a simulation model where you are able to project the clients wealth into the future and see any inefficiencies that might occur in their lives before the investments are made.
So it makes sense that a consumer, regardless of their worth, should ask for a simulation model to show what their wealth looks like projected into the future and see the inefficiencies before they make them. Elephant Hunter Financial Planners do not have the ability to do that since it requires a lot of work on their part.
You have to work in a macro-economic grid and uncover the inefficiencies before they occur. Financial planners are not skilled to do this unless they have full working knowledge of the LEAP system and strive to educate the client in what to look for. No matter how much a person or family earns, they can be shown how to grow wealth and keep it.