Comments on: Is your financial advisor worth $600 per hour?

By: dj

dj — Tue, 03 Nov 2009 03:20:17 +0000

Ok,all you hard working CFP,would you like to go to the billable hour model? Not to many willing to do that, wonder why? What would be your per hour rate be?

By: G Hughes

G Hughes — Fri, 28 Aug 2009 16:39:14 +0000

The frustrating thing is that the public thinks INVESTMENT planning is FINANCIAL Aplanning. Investment planning is a very small part oif Financial planning. It is the same at the bottom as it is at the top of the money chain.
The people who are paid too large bonuses are usually not the best people for the job – they are just the best sales people.

By: Sky

Sky — Mon, 17 Aug 2009 19:25:41 +0000

I always believe there are too many traps behind many credit card service. But many investment advisor keep advise to use it to deal with bills.
Maybe after the credit crunch, people would learn some lessons and start considering about changing some of their spending custom.

By: Nevin

Nevin — Mon, 17 Aug 2009 19:24:15 +0000

Many financial service providers these days are advertising that they can offer easy debt settlement, debt negotiation, credit repair, or even bad credit history erase. However, Very Few of them are actually reliable.
Debt Management and credit management is much harder than people ususally expected.

By: Sharon Williams, Wealth Advisor

Sharon Williams, Wealth Advisor — Sun, 02 Aug 2009 11:33:22 +0000

Appreciated Dan Yanaky’s comments-very clear and concise. The fact is, as financial advisors, we are only receiving a small portion of the much maligned MER. The greater portion goes to the fund companies and managers who manage the investment and for any advisor working for a reputuable firm, they will receive, on average, somewhere between 32% to 48% of the portion of the MER that comes to their company for their clients. Most good financial advisors spend more time than just their client meetings doing work for them-there is ongoing review of client’s investments, financial planning for many different aspects of their lives, continuing education to keep up on the ever-changing world etc, etc. As Dan said, and I wholeheartedly agree, I would not attempt my own car repairs, try to install a new furnace in my house, or take out my own appendix. The fact is, everyone these days has a severe shortage of TIME. Most households have both spouses working outside the home, have children to look after, grass to be cut,laundry to be done…the list goes on. As a financial advisor, I spend anywhere from 35 to 50 hours a week at my job, to look after my clients. How much time does the DIYer spend on their finances, and with what expertise? I will also re-echo the sentiment of finding the right advisor for YOU-as with any professional, both personalities and services provided will vary-find the one that is a good match for you and you should have a long and successful relationship.

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By: Lise Tremblay

Lise Tremblay — Sat, 01 Aug 2009 01:45:08 +0000

When I worked as a financial advisor, I sold regular Mutual funds with 0% entry fees. I felt that the low % given to advisors who sold those was big enough if you take all your clients into account. And I never charged for rebalancing a portfolio. After a few disasters in the beginning of my career, I had a few funds/managers one can rely on, the most obvious in my mind being “Harbourg Growth and Income” managed by Coleman, now at CI’s. Did you know that a couple of weeks before the markets started to scramble down,this fund was 93% cash? That was quite a signal!

CI is one of the very few Mutual Funds Companies who let managers manage, without forcing them to buy something they don’t like just because the Fund Company bought a huge amount of it.

By: Jeff

Jeff — Fri, 31 Jul 2009 15:30:48 +0000

I have worked as an advisor for almost 21 years. If I were to add up the amount of time I spend working on a client’s file, following up with them when they fail to do so, reviewing their income taxes, providing opinions on estate planning, tax strategies, and anything else they think of, I think my hourly rate would drop to $20-$30 per hour.

Remember when you first started working – and you wanted to start out in the right direction financially. I lose money over the first 1-3 years of many client relationships due to the amount of work involved relative to the money I earn. As Mr. Yanaky stated so eloquently, much of the work of the true professional advisor is in the non-monetary areas. we do this because it’s the right thing to do. I develop full financial plans (at no cost) for my clients and the glowing letters of praise I have received seem to justify the costs.

I know there are advisors who are in it for the money. If you want to figure out which one is which, ask one simple question.

HOW MANY CLIENTS DO YOU HAVE RIGHT NOW AND WHY?

That will provide the best answer for you. I have a small number of clients who want, expect and receive service that goes beyond the average advisor. I could choose to increase my client base by 10 times, but how would that affect my service performance. Our industry is changing and I welcome many of these changes. That won’t mean I will compromise my client’s best interests, by over-promising and under-delivering.

By: admin

admin — Fri, 31 Jul 2009 15:22:18 +0000

Thanks for all your comments. Ultimately, as I indicated in the post, the question should not be framed as “should I get an advisor” but “what value do I get out of it.” In certain situations, it may be better to be a DIY and pay for an occassional 2nd opinion. In others it is not.

I am going to address in a future post the frustrations of any advisor as a defense for all good advisors.

By: Canadian CFP

Canadian CFP — Fri, 31 Jul 2009 14:05:56 +0000

When is the last time that you performed surgery on yourself? If your advisor is saving you thousands of dollars in taxes is it not worth the cost? Also ensure that you shop around and find someone who has professional designations and a reputable firm behind them. If someone promises you fantastic returns RUN do not walk out of there.
My clients all get estate planning advice as part of the package standard as well we set out their financial plan and review it constantly. If you are getting one hour a year out of your financial planner it is time to look for another. As for the DIY people good luck but you are still getting hit with MER’s on mutual funds and you are still getting charged to trade stocks you just aren’t getting professional advice.