Been there, done that: an advisor’s timeline for moving clients to fees

Been there, done that: an advisor’s timeline for moving clients to fees

Been there, done that: an advisor’s timeline for moving clients to fees Veteran advisor discusses his arduous journey from one compensation model to another. Those making the move might want to read this.

Burgeonvest Bick Securities’ advisor John DeGoey’s been helping clients with their investments for more than 20 years. Recently, WP came across an article written by DeGoey himself from January 2002 detailing the difficulties involved in moving clients from a commission-based compensation structure to that of a fee-based model.

It’s an eye-opener for sure which got us wondering if anything has changed between now and then that would make it easier for advisors contemplating the move.

“I started the move in January 2001 and by the end of 2005 I had 100 percent moved,” says DeGoey.

“But you can’t do it all at once… anybody using DSC mutual funds, which I had been using until the summer of 1999; I mean you could do it quickly by having the client eat the DSC but that’s not particularly honourable.”

So, if you’re thinking about it, take some time to consider what type of products you currently provide your clients because that will dictate the pace at which you can do the move.

“People who are brokers who are using individual stocks – they can just flip a switch and stop charging commissions and charge a fee instead. It’s easy for them. But most people reading Wealth Professional would be using mutual funds and as a result, that’s a constraint [using DSC funds] they’re dealing with. ”


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