By Bill Bachrach via Iris.xyz
The experts on achieving goals say the first, and a very important step, to achieve a goal is deciding to. My hope is that this article points out some opportunities for you to make more money and serve your clients at a higher level and that you decide to do something about it.
The 5 ways FAs leave money on the table are:
1. Not charging a fee, or charging too small of a fee, for up-front planning and advice work.
If I had a nickel for every time I’ve heard an FA say, “I do the planning for free in the hopes of getting some of their assets” I’d have a lot of nickels. This is an amateurish approach. Instead, charge a fee for quality planning work that stands on its own merits, whether the client implements with you or not. And if they do choose to act on your advice with you then you deserve to be paid for that as well. How is this better for the client? Because when a person pays for advice they tend to be more inclined to act on it. And it’s acting on advice that produces results. No action. No results.
How much should you charge? A good starting place is $5,000 – $10,000. If your spine is still under construction or the idea of charging an up-front fee for planning and developing your advice freaks you out then at least start with $2,000. Just make sure that your fee doesn’t make you look like a weenie. E.g.: quoting a $2,000 fee to someone who has over $1,000,000 will make you look like a weenie. And don’t charge by the hour either. Charge for the value of your advice, not the hours it takes to create it.
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