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Personal finance education
Benefits & Compensation
Personal finance education
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Thank you in advance for taking the time to read my post and reply.
Over the past 12 months, I have invested most of my free time developing a financial education and training course to help people
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Forums » Topic Forums » Benefits & Compensation » Personal finance education
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Personal finance education
posted at 1/10/2011 5:00 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Some employers do offer this sort of thing as part of their benefits package, reimbursing employees up to $X (often $500) per year for legal/financial advice with an advisor of the employee's choice (and with strict definitions of the workd "advisor" of course). This doesn't help the OP, however. |
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Personal finance education
posted at 1/10/2011 6:47 AM EST
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
The challenge you're going to run in to from an employer perspective if you want to provide vouchers or reimbursements is showing ROI. Everyone can agree that employees who don't worry about their finances are probably going to be better workers. However, can eliminating this worry be done via "free" programs? If not, what's the right level of monetary reimbursement?
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Personal finance education
posted at 1/10/2011 7:19 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Yes and offering a voucher/reimbursement would be safer because it would be a third-party or arm's length because you are allowing the employee to choose who they use. That said, what would you do if they chose a relative (brother, BIL, etc)? How would you go about making sure it was a legitimate financial advisor? What basic requirements would they need?
I agree someone who is financially in a better place of mind is a better employee. But so is a healthier employee or one who is not experiencing marital difficulties, etc. Where does the employer draw the line? One other question -- do EAPs have financial advice in them? Haven't had one in a long time so I forget what they cover. |
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Personal finance education
posted at 1/10/2011 6:47 PM EST
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Posts: 3
First: 1/6/2011 Last: 1/10/2011 |
I appreciate all of the discussion on this topic (both positive and negative). The one thing I want to reiterate, is that what I am talking about is independent, unbiased financial education. Not recruiting employees to be clients. Not selling insurance or mutual funds. Not getting kickbacks for maintaining a 401(k) plan that is riddled with overpriced, actively managed mutual funds. This is also not financial advice.
Financial education is helping an individual understand critical concepts like compound interest, budgeting, and how to utilize the tax advantages of an IRA or 401(k). It also helps to simplify more complex topics like proper asset allocation in a retirement portfolio, how to build and maintain good credit, and ways to get more value in your spending. It's about giving people the information and tools they need to make better decisions for themselves. It is NOT about selling financial products or taking custody of client assets. And most importantly, it eliminates the conflicts of interest that come when an investment or insurance company attempts to offer a "similar" service. Regarding some of the other comments: - Regarding ROI, there is a significant amount of independent research on the topic of financial distress and the negative impacts that it has in the workplace. A recent study indicates that ROI on financial education can be 3:1 or more (http://www.personalfinancefoundation.org/research/vte/Benefits-Compensation-Feb-09-Article.pdf) and that financially literate employees can save an employer $2,000 or more a year through "increased productivity, reduced health care costs, better choices among employee benefits, and in a variety of other ways." - There are several companies who have had great success providing financial education to large companies and organizations (Financial Finesse and LFE Institute come to mind). My goal is to offer a similar service to small and mid-sized companies that are likely below the headcount for larger service providers. - Lastly, I apologize if I offended anyone with my post here. Helping people make better financial decisions for themselves is a real passion of mine and my first goal with this is to do just that. In fact, I will be several training courses at local libraries and schools. - If anyone has any other constructive thoughts or viewpoints, please keep them coming. Thank you. |
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Personal finance education
posted at 1/11/2011 3:07 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Even if the education you provide is completely unbiased with absolutely no hidden agendas whatsoever, there is still a serious risk for an employer who sponsors your seminars. If you make a mistake, or if an employee misunderstands you, and the employee suffers financially as a result of said mistake/misunderstanding, the employee may sue his/her employer. And the employee may well win.
This is not a risk I would knowingly saddle my employer with. |
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Personal finance education
posted at 1/11/2011 3:58 AM EST
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Good call on the EAP rupert. Some do indeed have a financial element to them, so a fair number of employee may already have access to such a service. It would depend on the robustness of the EAP in determining whether employees could access face-to-face meetings, however.
As for ROI, if it's an extremely general calculation, it's fairly meaningless. Many studies have shown that wellness programs can generate a 5:1+ ROI. Over 95% of corporate wellness programs, however, are nearly 100% ineffective. If you have the ability to create metrics on what you're trying to accomplish for any given employer, that would be much more meaningful. |
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Personal finance education
posted at 1/11/2011 4:13 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
"In fact, I will be several training courses at local libraries and schools. "
And honestly that is where I would expect to find the program. You also might look into YMCAs. (but I have to question how you will make any money on this if you are only doing it at nonprofits -- not sure they will be able to pay much) What I might be willing to do is to let my employees know that there is a program in the area for them to attend -- but only if they came to me and were discussing financial problems. And it would only be one of multiple choices I would give them IF they asked for my personal or professional help. Again, I would be very careful due to our nonsolicitation policy. |
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Personal finance education
posted at 1/11/2011 6:22 AM EST
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Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
If you get results you should be able to build a decent client base through word of mouth. I like the non-profit approach, even if you didn't make a lot of money it seems like it would feed your passion, hone your skills and help you build references. |
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Personal finance education
posted at 1/12/2011 9:01 AM EST
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
hrbth-While what you say is accurate I have worked at a number of companies that have allowed outside groups to make presentations and none were sued.
Remember as the plan fiduciary you are always at risk and nowadays there is more and more risk for you if you do not offer financial education. If you have a plan or plans you owe it to the members to provide education. You can always come up with language in the presentation that states these are general statements and do not specifically to any ones particular situation. |
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