Most financial advisors are financially distressed if not because they don’t have a secure income, especially during such a tough economic cycle like this where consumers are vulnerable and more likely to cancel insurance products trying to release some cash flow to protect assets and keep children in school.
According to a study by the Financial Planning Association, 63% of investors experience high or moderate stress but get this, 71% of advisors admit to being stressed out.
In the US, financial advisors have reported stress levels 25% higher than the average worker. I haven’t seen any local study for South African planners, please share if you know any.
There’s a profound African proverb that in isiZulu says “Inyanga ayizelaphi” loosely translated as a healer cannot cure themselves, the principle being that of Ubuntu – even healers need someone to take care of them.
The SA reserve bank just increased the repo rate by 75 basis points, adding further pressure on consumers that are already struggling to survive. It’s a predictable pattern – there’s going to be a spike of lapses, and a lot of planners are going to leave the industry in search of more stable income opportunities.
If you are a financial planner reading this, please seek help immediately when you start feeling the pressure. If you work for a big enough organization, reach out to their wellness department, I’m hoping that they have a dedicated financial wellness desk to help you with immediate solutions to reduce the pressure as you try and find long-term solutions.
It will also be wise to be proactive and make time to connect with your clients to discuss how they are coping, allowing you and them to explore options.
Just because you are a financial planner, it doesn’t mean you will always have answers. Seek help!
#financialwellbeing #financialplanning #financialeducation #financialliteracy