The financial services industry has encouraged the one-man-band model of delivering advice to clients. But the days of a single advisor coordinating all the personal financial affairs for individuals and families are over. As the financial advisory “team approach” has emerged, affluent clients have shown their preference to that model. For good reason, as it only makes sense that while the affluent are seeking ever more comprehensive financial services, the days of the “one-man-band financial advisor” have become numbered.Network Finance is an excellent resource for this.
Truth be known, affluent Ideal Clients have never been comfortable with the one-man-band approach to financial services. The idea that a single individual could be worthy of “expert status” in all areas of personal finance is ludicrous, and the affluent have felt this way for a long time.
The term “expert” is overused and unclear. What is an expert anyway? Nils Bohr, the famous physicist, once defined an expert as a person who has read every book and made all the mistakes that can be made in a very narrow field.
In his book, Outliers, Malcolm Gladwell defines an expert as a person who has devoted more than 10,000 hours to a specific subject. That’s 250 40-hour work weeks, or about five years, working in a narrow field.
In comprehensive financial services, we’re dealing with at least five narrow fields of personal finance:
By Gladwell’s definition, it would take at least 25 years for a one-man-band financial advisor to become an “expert” in all five fields and would take much longer using Niels Bohr’s definition.