When we turned the corner after getting off the elevator, I immediately noticed the richness of the oak, the curved wooden walls, and the original works of art. If money had a smell, that fragrance was running through their halls. Wall Street? No, but close: one of the premier investment firms in the nation. Their clients are individuals with large portfolios, many advisors and lots of success. Into our meeting later in the day, I could not help but think of my own employee benefits firm -- the work we do and the people for whom we do it. But let's go further than that: the entire benefits industry, the employees, the payroll folks, the HR staff.
Like most people in this business, I read several business periodicals each month, many of them from the financial planning and investment industries. One issue I always find intriguing is the annual and ubiquitous Top 10 Advisors in the Nation issue. This issue focuses on the top individual financial planners, their value to clients and their impact on their profession and communities.
Imagine the next issue of a financial magazine having a "group benefits brokerage" firm on the cover as the top financial planner in the nation, or the entire "group benefits brokerage" industry being given this honor.
"Why?" you might ask. "Is this guy kidding?"
Consider this: The financial planner to the average American is the employee benefits broker. t is not a certified financial planner, stockbroker, or estate planning attorney. While these professionals have a very important role in the financial health of the nation, they usually are only helping the top three to five percent of the nation's income earners. We in the employee benefits brokerage industry help the other 95 percent. The benefits broker has more financial planning impact nationally than the individual financial planning professional.
How is that? The place of employment is where most of American workers insure their health, protect their incomes for the rest of their working lives, buy most of their life insurance , and do most of their retirement planning [through their 401(k)s or 403(b)s]. It is where the vast majority of their financial planning dollars are managed. And this is for most of America! How these products are designed, priced, and communicated is critical to the financial fabric of the nation.
I began my career at a prestigious financial planning firm in Atlanta. As satisfying as that job was, I was seeing people who were financially successful, or at least had successful careers and were being compensated very well for their service. They had no shortage of advisors who would gladly help them manage their good fortune.
Later I went to work as an employee benefits representative with an insurance company specializing in the school system market. This was very different than what I was used to at my prior job. I soon learned that as I advised teachers each day, the work I was doing was very important. This was their one shot at getting professional help with their finances.
I began to realize why the benefits industry is so important - it is because the insurance man "ain' t comin'" around anymore. What this means is that the average American does not have anyone to talk to about managing their money. This is significant because no one is helping them become financially successful. How their employee benefits are designed either helps them become better stewards of their resources or conversely it can help them waste their resources.
Make no bones about it; we have along way to go. Benefits brokers are by no means perfect. Yet we have the direct line into the masses and directly control how they use the majority of their financial resources. We are doing good work and are getting better and better at it.
The question at hand is not which is the better way to do business. The question is who are America's true financial planners? I would submit that they are the ones who help the most people.
While the elite financial planning offices may be decorated with solid oak and original art, it is the employee benefit brokers' offices that are decorated with the fabric of America.
