CEO Today Global Awards 2025 - 23 - - USA - When you talk about financial security professionals, who exactly does that include? Are we talking about wealth planners, retirement advisors, estate planners essentially, the full spectrum? Yes. We represent anyone who believes in the power of a holistic financial plan. That means professionals working with life insurance, investments, annuities, and retirement planning. Some focus more on certain areas than others, but the key is a comprehensive approach to financial security. What are the key challenges facing your members right now? Given the current political and economic landscape, how do you see it impacting them? One of the biggest challenges has been the regulatory burden. The Department of Labor, for example, attempted to regulate commissions out of existence, and we had to fight that battle in court. Fortunately, we won, and the regulatory environment is improving. Another major issue is the potential tax code changes. If the 2017 tax cuts aren’t extended, we could see a $4 trillion tax increase. That would have major implications, and we’re actively engaged in those discussions. Beyond regulation, do your members express concerns about public perception? There’s often scepticism around commissions and conflicts of interest in financial advising. That’s a huge issue. The public perception of our profession doesn’t always align with the reality. Many in the media and certain organizations suggest that commission-based advisors can’t act in clients’ best interests, which is simply not true. The financial advice landscape has evolved—30 years ago, it was more of a sales job, 15 years ago it became an advisory role, and today, it’s all about comprehensive financial planning. The real focus should be on client outcomes. A recent Ernst & Young study found that consumers who have a holistic financial plan—including permanent life insurance, investments, and annuities—achieve better financial security. That’s the message we need to communicate. Do you have any concrete goals for increasing the number of Americans with financial plans? Where do things stand now? Right now, there are around 500,000 financial professionals serving 340 million Americans. That’s not enough. McKinsey estimates a gap of 100,000 to 200,000 professionals due to retirements outpacing new entrants. We need to grow the profession, and public policy can help. If financial planning fees were tax-deductible, more people would seek financial advice. Similarly, providing tax incentives for life insurance and annuities could encourage holistic planning. These are the types of changes we’re advocating for. AI is transforming many industries, including finance. Do you see it as a threat or an opportunity? AI will be a game-changer, but it’s not going to replace financial advisors. It will enhance productivity, simplify transactions, and make purchasing life insurance and annuities easier. But financial planning isn’t just about numbers—it’s about values, relationships, and emotions. AI can calculate financial projections, but it can’t help clients navigate the emotional side of planning for their families’ futures. That human element will always be essential.
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