Wealth Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Wealth Professional | 22 Apr 2015, 08:05 AM Agree 0
Advisors moving over to the fee-based model should forget the critics and offer a service long abandoned by established players, says an industry vet.
  • Sean Straughan CFP | 22 Apr 2015, 11:32 AM Agree 0
    Excellent article. I use the following analogy based on my own true story. I go to a Chiropractor. yr 1, 3 adjustments each time, yr 2, same 3...hmmm, yr 3, same 3...something's not right, yr 4, same 3, no value any more, new Chiropractor. Advisor's need to be continually demonstrating they are doing something to justify their fees, not just holding yr after yr.
  • John Page, R.F.P.,CFP,RFC | 23 Apr 2015, 11:11 AM Agree 0
    I concur with Sean that if the review is the same every year. But, some holistic financial planners do more. Some review a long check list - like a mechanic - and come up with stuff that requires attention. The rule of thumb for this way of operating is to produce a formal Action Plan that articulates all actions that should be taken by the advisor/or the client over the next 12 months (What/when/who/ and why). Most important is a new long term financial projection looking a probability of becoming financially independent which generates items for the Action Plan to be addressed .You get it, a bunch of hard but important work that endears clients for life - and probably makes the you somewhat impervious to a robo -advisor. In fact this service adds enormous value outside the areas that any robo will touch (today anyway). You might actually deploy a robo as step 1 in providing a service like this. There is obviously a fee attached to this.
Post a reply