Journal of Financial Planning: December 2014
WHO: Edward W. Gjertsen II, CFP®
WHAT: Vice president of Mack Investment Securities Inc. in Glenview, Illinois, and 2015 FPA president
WHAT'S ON HIS MIND: “One way to grow in this world is by meeting people who may share the same values as you, or share the same experiences, and those who don’t. Learning different cultures, different experiences—that is a great way to grow.”
PODCAST: Listen to our podcast with Ed Gjertsen
Ed Gjertsen brings decades of experience as a CFP® professional to his incoming job as FPA president, but it is perhaps his volunteer experience and passion for giving back that has him poised to truly lead in 2015.
Gjertsen is vice president of Mack Investment Securities Inc. in Glenview, Illinois, where he specializes in retirement planning, portfolio management, and estate planning. He’s been serving the financial planning needs of his clients for more than 20 years, and he’s been an FPA member since 1996. During that time, he has held FPA volunteer leadership positions both locally and nationally, including a three-year term on FPA’s national board of directors. In 2007, he served as president of the FPA of Illinois chapter and was awarded the 2008 Heart of Financial Planning Distinguished Service Award by that chapter. He is also a co-founder of the FPA Diversity Committee, serving as that committee’s chair in 2010.
In addition to his many volunteer positions at FPA, he has also served in leadership roles with several community sports programs in the Chicago area.
The Journal recently sat down with Gjertsen as he prepares for his term as FPA president to begin January 1, 2015.
1. What do you think will be the greatest challenge for financial planners in 2015, and how is FPA positioned to help?
The financial planning profession is going through a transformative phase. There are many headwinds for the profession—from regulation to succession planning issues, as well as just getting through day-to-day business operations, given all the different demands on our time as professionals.
How is FPA in a position to help? If you look at our four service lines: professional education, business success, advocacy, and community, FPA is positioned to help bolster our members becoming more efficient and effective with their practices through the FPA Research and Practice InstituteTM (RPI), and the Practice Management Blog and articles. How do we help you become a better practitioner? Through offerings like FPA Retreat and FPA BE in Boston, and through the Journal, and perhaps most importantly, through the myriad of FPA communities, such as chapter communities and knowledge circles.
If there’s an area that planners need support with or information on, FPA is a community of 23,000 colleagues they can lean on. FPA Connect, with about 13,900 participants, is a great platform and source for any issue a practitioner is facing.
We’re on the forefront in advocating on behalf of CFP professionals. As the largest membership organization for CFP professionals, we pride ourselves on having the backs of our CFP professional members, whether it’s in front of federal or state officials, or with CFP Board. Every profession needs an advocate to protect and speak on behalf of a community of professionals and we are it for CFP practitioners.
And perhaps the most impactful benefit FPA provides to its members is the variety of opportunities to be involved. That’s how I got to be the 2015 FPA president. I raised my hand 10 years ago. FPA of Illinois needed help on the technology committee, so I went from being a committee member to a committee chair, and then up through chapter president, then to national board member, to FPA president in 2015. So that initial connection led to a string of incredible opportunities that enabled me to become a better practitioner, a better leader, and a better person. While it may appear that I have given a lot as a volunteer, I feel I can never give enough to balance what I have received in return.
2. How can FPA deliver on its promise to be an indispensable force in the advancement of today’s CFP professional?
With our array of offerings and communities, FPA is already an indispensable force for CFP professionals. And as a learning organization, where we are now is not enough for us. We are constantly engaging our CFP practitioner members to uncover their needs in a rapidly changing landscape and then shifting resources to meet those needs. That’s why we created the Research and Practice InstituteTM last year, the knowledge circles this year, and why strategic plans are in place next year to provide a suite of practice management-related services for all members generally, and for the next generation of planners specifically. We will never stop proactively enhancing our offerings in the four service lines to meet our promise to CFP professionals.
3. What do you view as the top priorities for FPA in 2015?
I think FPA needs to continue being the voice of CFP professionals and the financial planning profession. What does that mean? It means clarifying and pressing our message that a profession needs a body of knowledge, appropriate certification, reliable mandatory training, a code of ethics, and practice standards. That’s why we are so focused on “one profession, one designation,” because the financial planning profession—if it is to be recognized as a profession broadly with the public, regulators, and legislators—must lean on the type of certification requirements evidenced by the CFP marks. FPA will continue to press the case on Capitol Hill, local governments, and the media.
One of the issues we’re working on internally within the profession is bridging the gap between those wanting to come into the profession and those potentially wanting to leave the profession in terms of retirement. So, a priority for 2015 and beyond is our Student and New Professional Program. We have an ability to really connect all of those different players within the ecosystem of financial planning, including students, young professionals, career-changers, and seasoned planners. FPA continues to lead the way in terms of making those connections happen and developing services to assist in these critical transitions.
4. How do you view FPA’s role in being an advocate for members to CFP Board?
FPA is the membership organization for CFP professionals. We serve the needs of our members and provide them with a voice on matters of importance to them as professionals. That includes representing their interests and advocating on their behalf with CFP Board. When an issue arises and we need to make certain our CFP professional members are aware of it, we will engage in proactively informing our members so they can contact CFP Board and have their voice heard. When an issue arises where we don’t feel CFP Board is on the right track, then we proactively advocate on members’ behalf before CFP Board. We enjoy and very healthy relationship with CFP Board now, with regular interaction with CFP Board leaders where we discuss a wide range of issues important to practitioners. CFP professionals must have a voice. FPA provides that voice.
5. You have held various volunteer and leadership roles at both the FPA chapter and national levels. You’re also involved in several community sports programs. What inspires you to volunteer, and what have you gained through volunteering?
I give back to FPA because FPA has been transformative in my life. Being involved with the technology committee at my local chapter and being involved with the chapter leadership system, in terms of teaching volunteer leadership, has changed me professionally and personally. I owe a huge debt of gratitude to FPA for allowing me to develop those skills over time. To be able to use those skills and hopefully be able to share what I have learned with others is incredibly important to me.
It goes back to the quote: “You make a living by what you get, but you make a life by what you give.” I’ve always been a giver in terms of trying to make things better. It’s not standing up in a room and saying, “This is wrong,” but saying, “I think this can be better,” and then taking action. And taking action is one of the things I like to talk to FPA members about. If you’re just sending a check in, that’s fine and thank you, but to really get the benefit out of FPA, you need to get involved to help advance the association, the CFP marks, and the profession.
To me, getting involved and volunteering is so important. I’ve learned so much through my FPA volunteering, through some phenomenal people, and through events like the FPA Chapter Leaders Conference. I have learned that you can’t manage volunteers; you have to inspire them, and that’s one of the things that I love doing—helping people find their passion and just kind of letting them loose.
6. You are a co-founder of the FPA Diversity Committee and served as the committee chair in 2010. What has that committee accomplished so far, and what’s your opinion of the state of diversity today within FPA, and within the planning profession?
What started out as just a couple of people really wanting to make a change has grown into a great committee that offers diverse groups the opportunity to engage with each other and offers scholarships to attend FPA conferences where they can connect with planners from across the country.
If I look at the makeup of the FPA Board of Directors in 2015, the majority will be women, and the entire makeup of the national board has to be one of the most diverse in the financial profession. I am very proud of that. FPA is not only talking about diversity, but we are leading in diversity. That diversity enables the board to see things from different perspectives.
7. The SEC has been talking about a possible uniform fiduciary standard for investment advice for a long time. Meanwhile, many folks in the planning profession continue to place an emphasis on compensation and business model. Is this a mistake? Does the conversation in the profession need to change?
The fact that we are still trying to determine if somebody is competent based upon compensation is a little maddening.
There are lots of different business models out there. FPA is compensation neutral, because the best way to build a profession and benefit the public is through a designation that the public can rely on. And from the consumer’s standpoint, they really don’t understand the nuances and the differences between the different standards and compensation methods.
There are those in the profession that will do right by the client no matter their compensation method. And there’s going to be those who won’t do well by the client, no matter their compensation method.
I would prefer that planners be judged on the ethical standards they follow and their level of competency. You don’t walk into a doctor’s office and say, “Are you selling me a prescription? Do I need to worry about you because you’re earning a commission on this?”
We are the only profession I can think of where compensation is being used as a wedge to determine who is competent and ethical and who is not. I’m hoping that this profession will move away from compensation and focus more on determining if somebody is competent and ethical. It’s not about how you charge, but whether you act in the client’s best interest.
8. You’ve been a CFP practitioner since 1996. Has public recognition of the CFP marks changed since then?
I believe so, yes, through the efforts of FPA and CFP Board. If I look at the CFP marks in terms of public recognition, yes. But if I look at the recognition of financial planning as a profession, we have a long way to go. The challenge is the alphabet soup of designations out there. But we’re making inroads in terms of people’s recognition that: if I’m looking for a financial planner, I should be seeking a CFP professional.
9. You have been doing financial planning for more than 20 years. How has the profession changed over that time?
The changes are numerous and profound, including demographic shifts in individuals who are practicing and entering the profession, demographic shifts in the size and nature of financial planning firms, ways planners practice and what clients expect, and in increased competition and confusion in the financial planning space. Most importantly, what the last 20 years have shown is an ever-increasing need for a recognized financial planning profession. FPA’s relevance as a powerful voice for the profession and CFP professionals has never been more important given the past 20 years.
10. What is your hope for the future of the profession?
The dream 20 years ago was that financial planning would be recognized as the profession it is, similar to physicians, attorneys, and accountants. People wouldn’t question where they go for the help they need. It would just be natural for someone to think, “I need to talk with a financial planner to get my financial affairs in order.” We are getting closer to that becoming a reality, but there is still much more FPA and the profession can do to raise awareness of the important role CFP professionals play in the lives of their clients and in society.
Carly Schulaka is editor of the Journal. Email here HERE.