How can an advisor justify charging fees to put someone in funds. I get there’s a financial planning aspect but if you’re not focusing on planning a client should be better off using betterment.

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Are you a financial advisor who gets paid? Why should anyone pay you instead of using betterment? If you can’t justify your own fees you’re in the wrong business.

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Stupid post. Makes me wonder about the writer’s intelligence. No-load cardiologist, look it up

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Do you work for money magazine or any other publication that pushes no load funds and etf’s? ( nothing wrong with those investments )I will give one example and leave it at that.

EMOTIONS

Most people can’t manage their money and they need help. I will call them back and be a human person that will answer their questions and help guide them with a plan.

Like the other FA said , if you can’t justify your fee.. go do something else for a living.

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Yep. I charge an AUM fee of 1%. That includes:
-Allocation
-Education
-Comprehensive Planning
-Preventing emotional decisions
By the way, how well does Betterment console the grieving widow? How well does it reassure her that there is a plan in place and that it'll be there to make sure it's followed?

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Yes. I am a Financial Advisor; it's my job title. Why isn't yours "money manager?"
You obviously have a chip on your shoulder about this topic. Since you are so clearly far superior to all of us Financial Advisors that use funds for diversification, please enlighten us on your amazing system that will revolutionize the industry.

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OP- are you saying that you can select companies to invest in better than an investment manager? I would submit there research is probably superior to yours. Or am I missing something?

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Ok, let’s agree to disagree

Have a happy 4th

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I charge a planning fee for planning. I charge a wrap fee on advisory. Why wouldn't you do both

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Guy, there are so many advisors that charge an asset fee and put clients in funds and etfs

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OP I think you’re referring to a scenario where an advisor is charging a fee then acting more like a broker in that he puts them into a set of funds and long term buy and hold??? Never really offer any ongoing management? I think that is where some of the confusion is coming from on your question.

I charge a fee, use ETFs and actively manage the model as the market dictates. Rules based so no emotion

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OP, let me guess...your clients are up 18% YTD too...

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If you're picking individual stocks, I have a hard time believing your business model is scalable, or that you will outperform buy and hold over the long term.

I used to think I could outperform the market, and I did most years, but now I realize it's exceedingly hard to do so with other people's money. It's also not necessary.

And there are so many situations where returns are not the most important thing. You sound like I did when I first started out, thinking clients want high returns. Some do, most do not. They just want an assurance they want be living in poverty in their retirement.

And by most people's standards, I'm a failure as a FA, managing only $9 million after 6 years. But I live in a $2mm house built by my investments. My investments have done exceedingly well, and they are mainly 99% funds/ETFs.

Good luck to you!

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I don’t put clients into funds. End of story. I also do the planning aspect but can you honestly charge an aum fee for planning with fake active management. If you’re doing planning and using funds you should be charging hourly.

I don’t know what either of you do but there’s a difference between a money manager (who should charge AUM management fees) and an advisor (who should only charge for advice provided)

Therefore hourly

So what you’re saying is that you’re an advisor and not a money manager and you should be charging for advice and not for managing money? Same as any other advisor e.g accountants. Good then we agree

So elaborate on how and why you’re paid OP, I’m genuinely interested.

I actively manage my clients funds. I don’t just plug the info into some risk software turn up an allocation and then throw my clients into funds and etfs Look I love capitalism so good for you charging it

You said you don’t use funds though. Are you talking about their assets? You actively manage their assets but don’t get paid on it? Sounds like a good business model to me...

Fa3 actually not having the best year. We’re up 6 net of fees but it’s been a roller coaster this last month.

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