Buried in a recent survey that aims to describe the typical planner: more evidence that competing on price is foolhardy.
Military-oriented First Command Financial Services polled 1,000 Americans and discovered that the typical prospective client wants an honest advisor who knows what he or she's doing. That's not news.
The interesting finding is that only 30% of the respondents say price matters at all when they're deciding on an advisor. They're not looking for a discount option. They're looking for someone who can do the job, and they're willing to pay a premium for good service.
As First Command CEO Scott Spiker summed up, financial planning is not a commodity business where clients will encourage advisors to race to the bottom in a competition to see who can survive on the lowest fee. As long as the advisor can demonstrate value is being added, that's all it takes.