The Wall Street Journal published an article in 2021 asking if it was Time to Say Goodbye to the 1% Investment Adviser Fee? The author wrote that some investors are “seeking – and finding – alternatives to traditional financial advisors who charge a certain percentage of assets under management.”
It then highlighted some alternatives such as flat annual fees and monthly/hourly fees. As you might imagine, the comments section was filled with readers questioning the value of advisors.
Here’s one example:
It always amazes me how someone who's managed to accumulate a seven-figure-plus net worth … can be so reliant on a hand holder rather than doing the research necessary to manage their own investments.
For a bit of fun, try changing the final clause. For example: “It always amazes me how someone can be so reliant on a hand holder rather than doing the research…
Ultimately, deciding to do something yourself instead of hiring someone to do something for you is a function of your time, interest and ability measured against the cost of having someone do it for you.
The question of time is whether you literally have time to do something as well as whether something is the best use of your time.
For example, if you wanted to install a new patio in your backyard, you could choose to do it yourself or hire a professional. More likely than not, you’d choose to hire the professional firm to leverage its expertise (not to mention its tools and equipment).
As a financial advisor, your clients and prospective clients are wondering, “Are you worth it?” While you can certainly explain how you save them time or alleviate the burden of managing their finances, above all else you must emphasize your expertise – your distinct ability to help them achieve their financial goals and objectives.
Brought to you by Pathfinder Coaching & Consulting, https://pathfinderadvisor.com/.
The representations and opinions herein are the opinions and view of Pathfinder Coaching & Consulting and are not the opinions or views of EQIS. The information is believed to be reliable but is neither guaranteed by EQIS nor any of its affiliates. EQIS and Pathfinder Coaching & Consulting are not affiliated. EQIS is not responsible for the content or availability of the third-party websites made available.
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