Table of Contents
Copyright 2009 by E. Denby Brandon, Jr. and H. Oliver Welch. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Brandon, E. Denby, 1927-
The history of financial planning : the transformation of financial services / E. Denby Brandon, Jr., H. Oliver Welch. p. cm.
Includes bibliographical references and index.
eISBN : 978-0-470-55379-4
1. Financial planners-History. 2. Financial services industry-History.
I. Welch, H. Oliver, 1935- II. Title.
HG179.5.B73 2008
332.62-dc22
2008001412
This book is dedicated to the Certified Financial Planner Board of Standards, Inc., the Financial Planning Association, and the National Endowment for Financial Education, which inspired us to write it, and to the more than 120,000 Certified Financial Planner certificants in 20 nations who are committed to bringing the values of financial planning to consumers.
Foreword
Its not every day a profession is born.
If you have picked up this book, you most likely are involved in financial services, an industry comprising academics; product providers; financial planners; practitioners of specialized disciplines such as tax planning, accounting, or investment management; and organizations that provide oversight, education, and benefits to the industrys constituents. The focus here is on financial planning and the people and events that helped transform a concept of service into a profession of service. This is the history of financial planning.
You could say it started with one man, Loren Dunton, a mutual fund salesman with a desire to do more than sell products; he wanted to offer services and advice that would help his clients. But he knew he couldnt breathe life into this notion single-handedly. One man became two, became 13, and on December 12, 1969, became the College for Financial Planning and the International Association for Financial Planners. Yet even then, financial plannings genesis was in its early stages. It took a growing community of men and women sharing a noble calling, and the passion to cultivate it, for the profession to take root.
This book follows financial plannings odyssey over four decades, surveying a varied landscape of revelations and revolutions, false starts, missteps, survival, defeat, separation and union, innovation, trials, and triumphs. It presents a chronology of the professions development by way of internal and external events, with a substantial thread of humanity woven in, as we introduce some key contributors to financial plannings story. Indeed, we present only some events and names, for to include in these pages everyone and everything that has played a role would be impossible. When it gets down to it, though, while those who lead and explore in any field clearly deserve recognition, its what they create and discover that should endure, more than their celebrity.
The board of directors and staff of the Financial Planning Association appreciate the opportunity to contribute to this significant effort championed by E. Denby Brandon, Jr., CFP, and H. Oliver Welch, CPA, CFP, veterans and leaders of the financial planning movement. They devoted extraordinary personal effort, time, and financial resources to collecting volumes of accounts, dates, statistics, and their colleagues stories as the basis of this history. Without a doubt, it was a labor of love and took an unswerving dedication to tell a powerful story of 40 years that, until now, has never been brought together in one place. I cannot thank them enough.
To reflect on these first 40 years of the financial planning profession is exciting. I am impressed and humbled by all that has been accomplished in this journey toward legitimacy. I am encouraged by the increasing reach of financial planning into the world, be it through new member organizations and educational programs in other countries, or the growing ranks of financial planners here in the United States, or in serving a wider range of demographics. I watch the impact of the professions voice on legislative activities and decisions, and the energy generated by prolific, progressive research. I am touched by the generosity and compassion that so many financial planners exhibit through pro bono and volunteer work. I am heartened by financial planners ability to deftly guide anxious clients through economic challenges. At the time of this books publication, planners and clients together are being tested to their cores like never before. When the next edition of this history is updated, I believe that the wisdom and power of professionals who employ the financial planning process will prove to be a saving grace for many individuals and families in desperate times. This is where the financial planning profession of today will come of age, living by the immutable code on which it was built and on which it will base its future.
I hope you will learn from this history of financial planning, regardless of what business youre in or whether youre new or a veteran in your career. I hope this book adequately conveys to you the heart, soul, and tireless commitment that have added to the depth and richness of this profession. If youre a financial planner, I hope this historical perspective will demonstrate the scope of the community to which you belong. I hope youll understand the critical relationship of the varied elements that play a part in this professions excellence, such as academic research, product development, and legislative advocacy. Finally, I hope this history of financial planning will inspire you to be clear in your mission, adhere to your truths, and help your fellow residents of this world thrive and prosper.
