Comments from A4A members on my recent post about problems plaguing the CFP business model express serious concern at the direction of the financial planning profession.
"The profession (if it ever was a profession) has morphed into one where Financial Planning now means gathering and managing assets. Advisors are ignoring all of the other aspects that planning is supposed to involve. Certainly the problem won't be fixed by government regulation. Maybe the business model never worked but it seems to work less effectively now."
"Realistically, the average planner (not investment adviser/manager) has a hard time working with truly high net worth individuals. There are not that many of them relative to the number of planners. So the average planner has to work with the mass affluent and people who have lesser income/assets. Run the numbers and it's easy to see the financial difficulty for such planners."
“We've got the vocabulary and soul-orientation to do lots of good. It's time to put the rest of the puzzle together so American families don't have to go through this terrifying transitional economy alone. But, the companies with the money to support the status quo are paying for the meetings where this might happen, and dramatic change and reformation is not on their want list.”
"How long before our young planner finally throws up his hands and gets so tired of competing against the "free" salesmen that decides to virtually leave the profession, focus on his technical skills, start the CFA program, and open what is primarily a money management firm (with planning snuck in on the side)? In my experience it takes about 14 years. Those a bit sharper than me perhaps a bit less. "
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