The ONLY move the CFP Board made that I LIKED

[DHK]

CFP Board removes compensation descriptions from consumer website - InvestmentNews

“The three compensation method categories previously provided by the search tool – Commission-only, Commission and Fee and Fee-Only – were broad enough to capture the various compensation methods financial planners use today, but not very specific or helpful to consumers,” the CFP Board said in a letter to certificants Monday. “We believe the best way for consumers to select their financial advisor is to have a conversation with their prospective advisor.”

Price discussed in the absence of value is always too expensive - and it may help remove some of the "fee-only morality" crap.

Of course, some people don't like it, but you can read about them in the link.

 

[Tahoe Ray]

CFP Board removes compensation descriptions from consumer website - InvestmentNews



Price discussed in the absence of value is always too expensive - and it may help remove some of the "fee-only morality" crap.

Of course, some people don't like it, but you can read about them in the link.

I don't think that most agents understand how valuable that "fee-only morality crap" is.

These RIAs, family offices, hourly planners, etc. don't take commissions and yet MUST recommend commission-based products (P&C, DI, Life, LTC, etc.) in the client's financial plan.

That is a HUGE opportunity for agents that can strategically align themselves with these folks. They're not your competition, they're your center of influence (referral source).

Most of these referrals are straight layups. "My planner said that I need this 5k LTC policy, please get it for me" or "I need 10k/mo of DI coverage per my advisor, what company should I use?" are common statements/questions from their referrals.

I've said this before but I have a few of these shops that I work with (and would love to work with more). One wouldn't even let me buy the wine for their holiday party because it could be perceived as a "kickback" (by who, I have no idea). I bought them a couple of cases of beer for their advisor retreat instead. 100 bucks for over 25k in AP on the year. Sign me up all day.

 

[Tahoe Ray]

I don't think that most agents understand how valuable that "fee-only morality crap" is.

These RIAs, family offices, hourly planners, etc. don't take commissions and yet MUST recommend commission-based products (P&C, DI, Life, LTC, etc.) in the client's financial plan.

That is a HUGE opportunity for agents that can strategically align themselves with these folks. They're not your competition, they're your center of influence (referral source).

Most of these referrals are straight layups. "My planner said that I need this 5k LTC policy, please get it for me" or "I need 10k/mo of DI coverage per my advisor, what company should I use?" are common statements/questions from their referrals.

I've said this before but I have a few of these shops that I work with (and would love to work with more). One wouldn't even let me buy the wine for their holiday party because it could be perceived as a "kickback" (by who, I have no idea). I bought them a couple of cases of beer for their advisor retreat instead. 100 bucks for over 25k in AP on the year. Sign me up all day.

I just got a like on this (thanks pfg1) and clicked on the alert to see what the comment was.

Did I really write this 15 days ago? It feels waaaaay longer.

 

[DHK]

This week has been a long year.