Yellowtail Blog

Here’s something I wrote a while ago to explain to a prospective client why we felt we were different to most other financial planners out there.

For as long as I can remember, financial advice has been paid for by commission, and that’s still the case today. So it is understandable that there can be a mental block when someone asks you to pay a fee for the advice.

People who come to us for advice like the idea that advice stands alone, real independence you might say. But for some; paying for advice without commission might be a leap of faith too far. Perhaps it would help if we used an analogy to explain our thinking? I turn to the world of golf to help me make my point:

It’s relatively easy to get started in golf and there’s an endless supply of self professed experts to tell you where you’re going wrong. But eventually you reach a plateau. Unable to improve your game any further you figure it’s time to spend some money.

You haven’t got unlimited time and money to throw at the problem so you narrow it down to a couple of options. The Golf Pro working in the shop will analyse your swing and give you some tips before recommending a new set of clubs, he won’t charge you anything which is good because the clubs are expensive enough right? The other option is to spend some time and money on having some individual tuition and lessons, but if you do that you still have to play with your existing clubs, you cannot afford the two.

In the end you decide that new clubs will give you the edge, and the few pointers that the pro gives you will be enough to improve your handicap once more. And so it goes on, each time you reach a plateau you buy newer and better equipment and get a couple of tips to improve your game.

But what if you had chosen the other option? You meet the Pro, the one who isn’t on a commission from the shop, and you sign up for some lessons. After watching you take a few swings with your old clubs the pro picks up a club and steps up to the tee. You watch in awe as ball after ball flies straight and true. It’s clearly not the equipment that’s the problem.

Having seen what’s possible you listen carefully as your coach deconstructs your swing and slowly shows you how to swing properly. Old habits linger and it takes practice, but eventually it begins to fall into place. You begin to understand why when you do x, y happens. Your game is better.

And in a similar way that’s what we do, after analysing your current financial position we coach and educate you toward the life you want - your ultimate game perhaps. We’re not here to sell you a set of new clubs; we’re here to help you build a game plan.