In a post two weeks ago, I said I understood MoneyGuide Pro’s recent price increase, which spawned some important responses from advisors and a thrashing of CashEdge. It’s worth going over these comments from advisors.
My story addressed a comment on A4A made by financial advisor Tim Knott in which he appeared to be complaining about MGP levying a 10% price increase. In subsequent comments, Knotts and other advisors clarified the issue. He was not so much objecting to the 10% price increase as he was that he was being charged for an additional partner in his firm.
Knotts says his annual license fee for MGP soared from $1,095 to $2,995.
Knotts chided me for giving him a “public flogging” in my post in which I said that a 10% price increase seemed reasonable. It is.
A price increase of nearly almost 300%, however, is a whole different thing.
A4A member JK shed more light on the issue.
“MGP is trying to address the problem of firms sharing licenses (i.e. the firm would buy 1 license for 3 advisors),” said JK894. “They should get paid for 3 users if 3 users are actually using the product.”
“There are many firms with multiple advisors where not all the advisors are providing financial planning services and, thereby, have no need for a license to MGP,” added JK894. “Why should a firm that is primarily an asset manager that has 10 advisors with only 1 that does financial planning pay as though all 10 are financial planners?”
JK894 goes on, saying MGP has “taken a big step backwards” with its pricing for CashEdge account aggregation.
“They no longer have a price advantage over ByAllAccounts even though ByAllAccounts is a superior product,” says JK894. “MGP should consider revising the price of CashEdge or getting serious about adding ByAllAccounts as an integration partner.”
I let these comments stew for a few days waiting to see if MGP would respond. They have not reponded yet. I’d be surprised if they don’t. Moerover, if the pricing plan is indeed charging firms for MGP when their advisors are not using it, that’s a problem. But I am sure that MGP will fix it, if indeed it is what’s happening.
Regarding the CashEdge versus ByAllAccounts debate: the favorable comments about ByAllAccounts are no surprise. BAA has been getting favorable reviews from advisors for years, while I have heard advisors for about as long voice problems with CashEdge. While reviews of BAA versus CashEdge on A4A are sparse, they acurrately reflect what I’ve heard from advisors.
And, Tim, I apologize for the “flogging” and hope this soothes your wounds.