The link below to an article on Bloomberg today is no new news. People are concerned about fees. I'm shocked! The information on what people are charging is interesting but what caught my attention were that last four paragraphs.
PFGC has always focused on what is our business model today and tomorrow? One of the basic tenets of PFGC is that our pricing model will eventually change because it is not transparent. What we mean by that is we charge for money under management and then our value-add is any other services we can provide. Some FAs are trained and have the proper designations to deliver wealth management services as part of their model. It is all inclusive. Some FAs (most) do not have the ability deliver a wealth management offering. The end of the Bloomberg article asks some very important questions.
First, "there is no clear consensus on how to value wealth management services effectively". This is an issue as the article goes on to state that clients are questioning on how we deliver our financial advice. Some FAs are moving to hourly rates and retainer fees.
Second, the article questions that we charge by the amount of assets under management than by the actual work we do. This is my greatest fear; flat fee pricing.
Third and finally the article ends with that "there's going to a need to be a tighter match between what you charge and the service you provide".
What does this all mean to us? Nothing changes overnight, it's a process but the other side of the coin is we also don't change overnight, it is also a process. If our offering is going to be teased apart over the next 5 years or so Designations will become critically important.
So we have time but designations take time. Take a left-footed step today and look into what designation will be the most helpful to you in maintaining your business and lifestyle.
Danny
"One left-footed step per day"
