The Next Level

I have just joined the financial industry and the year is 2001. I just left my office automation sales job and went on to be an insurance adviser. I had always been a non believer of insurance because my father told me so.

I went for a meeting with my friend's boss and he managed to convince me to go take the exams . At that time all you needed to take was 1 paper, certificate in life insurance which is obsolete today. I picked up the book dreading that I have another exam to study for, since I am already doing my part time degree in the evenings. Sat down and prioritised, degree will always come first. Insurance is a means to get pocket money.

My perception of insurance changed when I read the text, I saw why was insurance important. I saw how it worked and how it benefitted. I became an advocate. I ate, sh*t and slept insurance. I talked non stop about the importance of it. This is the time when you start losing friends, people eye your phone calls with suspicion. They think you have an ulterior motive when you call them out for coffee. This is a test of your friendship with your friends or those who you call friends. The friends will never hesitate to come out and meet you. They will never make excuses if you ask them for coffee. Friends will be the one that tell you to 'turn off your insurance mode'.

I have a friend who was my first client. He never rejected me and agreed to meet when I called him. New laws have been passed and the first 3 appointments have to be accompanied by your boss. Told my friend my boss is coming. He said, sure.

During the appointment, I explained the plan that I am recommending and my friend listened intently. After that we did the paper work. All the time my boss was silent. When we finished the paperwork, my boss spoke, he asked my friend: why didn't you want to do the PFR?

In my head I was stabbing my boss a thousand times over! PFR?! Personal Financial Review! This review takes the income, assets, liabilities and the financial objectives of a person. An adviser will then have to take the PFR and transfer all the information to the FHR Financial Health Review, key the figures into a financial calculator and then generate a report for that person. And in the times of 2001 where laptops was still retailing about $3-$4k, it is not an easy task. The PFR alone will take about an hour. I will have to go back to office after to do the FHR! Boss I am going to kill you!

In my head I was hoping my friend will say: no, its ok no need. Instead, he asked: whats that? My boss looked at me and I went on to explain what the PFR is. Explained to him what I will have to do after I get back to the office. He said: Sure, I don't mind. 'But its going to take about one hour or more. We do here now or we make another appointment.' I asked. He finally asked me to go to his place on another day to do the PFR. Boring!

But little do I know that this exercise will bring my understanding and need of a financial plan to the next level.