Survey Shows Half Of All Financial Advisors Are Not Charging For Asset Management
- Created: Thursday, 31 March 2011 20:55
A new survey of financial advisors reveals that 50% of CFP licensees are not charging for investment management services.
In addition to showing that half of all CFPs do not charge for portfolio management, the survey shows that most CFPs who do charge to managing money are doing it for $1000 a year or less.
If you clicked on the link to the new survey, then you know how serious the issue is.
And while I provided that link because it is right the time of the year for this message, there is an element of truth to my little prank.
Yesterday I reported on a real survey, the College for Financial Planning’s 2011 Survey of Trends In The Financial Planning Industry, which showed that 13% of CFPs don’t provide comprehensive financial planning and that 37% of the CFPs who do provide comprehensive plans do not charge for the service.
My April Fool’s joke is meant to highlight the professional dilemma financial planners face: Half of the profession is, according to the 2011 Survey of Trends In The Financial Planning Industry not providing the core advice product of the financial planning process or not charging clients for it.
If financial planners must give away financial plans as a loss leader to bring in assets under management or not provide the service, something is wrong with the business model that must be addressed if financial planning is ever going to become a profession.