How the Sausage is Made...Submitted by Financial Planning Hawaii on May 27th, 2017
An examination of the Economics and Conflicts of Interest in Financial Advisor Compensation Models
An article I have written for my industry peers on advisor compensation models and the financial planner's value proposition has been published in the current issue of Advisor Perspectives. The article is a rebuttal to a long running column by planning industry thought leader, Dan Solin. In his articles, Dan suggests that financial planners may increasingly have a difficult time demonstrating their value proposition relative to upstart automated trading platforms (a.k.a. “Robo-Advisors”) that pair low-cost index funds with a CFP telephone rep for a fee of just .30-.5% per year.
My article offers a counter-perspective to Dan’s rather gloomy outlook, and demonstrates how it has never been easier for knowledgeable, experienced financial planners to articulate the tangible value they provide over and above the limited advice consumers can expect to receive from a hybrid robo advisor platform. My complete rebuttal may be viewed at the following link.
Why the Future is Bright for AUM Advisors (5/23/2017)