Notes from an Idealist

"If I had asked people what they wanted, they would have said faster horses”. There is some debate as to whether Henry Ford, to whom this line is often attributed, ever actually said this. Irrespective, it does raise some interesting questions, mainly about asking the right questions.

Any business, in establishing a client’s needs and requirements must ask the right questions. In my profession, for example, it is vital to establish need and objectives before recommending a suitable investment strategy. However, this is rarely as simple as asking a client what they want to achieve. Few know, and fewer are able to articulate it.

This year is the 150th since Ford’s birth. It is truly remarkable how many of his ideas still hold true. He was, of course, about so much more than cars. He is widely credited with inventing the modern production assembly line. This allows for mass production in a consistent manner.

You may argue that some of the jobs could be considered monotonous and that humans need more involvement in order to be truly satisfied in life, but without such ideas we wouldn’t have, or couldn’t afford, many of the things that we take for granted today.

Ford of course also famously remarked “Any customer can have a car painted any colour that he wants so long as it is black”. Choice is something that is commonplace these days and, unlike Ford, almost all businesses with an eye on the future endeavour to deliver it.

Again, if I relate this to an aspect of my own work, pension annuities, I can immediately think of the following options: Which provider? Guarantee periods? Spousal benefits? To index or not to index? Am I eligible for an enhanced rate? Despite the bewildering, and sometimes confusing array of choice, annuities are something that most people will have to get familiar with at some point.

In addition, it is a one-time-only decision – once you have made it and purchased an annuity there is no going back. It is crucial therefore to get it right first time. Unless you truly understand the market advice is essential.

My favourite Ford quote, and one that I always try to live by in my professional life is this: “An idealist is a person that helps other people to be prosperous”. I’m tempted to change the word ‘Idealist’ to ‘Financial Planner’ – it doesn’t roll off the tongue quite as well but it does sum up what we try and do.

For further information please contact Shipman Financial Planning Ltd, 1 Barnfield Crescent, Exeter, EX1 1QY, telephone 01392 278491 or email info@shipmanfp.co.uk.

This article is for general information only and reflects the views of the author only. You should seek professional advice in respect of your own circumstances. Authorised and regulated by the Financial Conduct Authority. Shipman Financial Planning is a highly respected professional adviser offering personal service and innovative advice.