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An RIA that offers financial planning and wealth management has decided to no longer sell insurance of any kind. He’s only (passively) sold 2 or 3 life insurance policies per year for the past 7 years, but now says he will refer all life insurance prospects to one of his life insurance agent clients. He mentions 2 reasons for doing this:
“First, because doing so prohibits me from holding myself out as fee-only in the eyes of the CFP Board (to clarify, I do not agree with the Board's position on this issue). The second reason is that being fee-only is a competitive advantage with a large number of clients.”
As he says in his blog post (link below), he thinks it will be a good business decision if he receives more clients as a result of being fee-only and the additional fees are greater than the commissions he would have received from continuing to sell life policies.
What do you think – good call or bad call? (And why?)
Why I Won
“First, because doing so prohibits me from holding myself out as fee-only in the eyes of the CFP Board (to clarify, I do not agree with the Board's position on this issue). The second reason is that being fee-only is a competitive advantage with a large number of clients.”
As he says in his blog post (link below), he thinks it will be a good business decision if he receives more clients as a result of being fee-only and the additional fees are greater than the commissions he would have received from continuing to sell life policies.
What do you think – good call or bad call? (And why?)
Why I Won