Insights from the experts in investment fiduciary responsibility.

Fiduciary Links: Looking forward to the next big advisor fee model

Posted by fi360 Team on June 16, 2014

Permalink |     

>>>>>In his column for Financial Planning magazine, Bob Veres gives a short history lesson on how broker and advisor fee models have changed over the years, before taking a look at the next potentially game-changing model. He suggests all advisors take a look at the monthly retainer model that some younger advisors are employing to target younger investors. The model can help both the advisor build their book of business at a younger age, while also allowing investors who don’t actually have assets to be managed gain the benefit of advice from a professional right when they are beginning to form their financial habits.

Similiary, TD Ameritrade Institutional’s Tom Nally said in an interview with InvestmentNews that advisors might want to consider charging a fee for assets under advisement, rather than assets under management, as a way of competing with “robo advisors.” He too believes that this could help clients see the value of the advice, rather than a charge tied to investment management activities. With this type of model, advisors could charge a lower basis point fee that is more competitive with online providers, while offering more services and personal attention.   

Neither suggests the models are right for everyone, but think there are lessons to be learned from the practices and believe that advisors should always be on the lookout for the next big trend. 

Now on to the rest of the week’s best links:

News and columns from the leading trade, consumer, and mainstream media:

From the organizations/associations/government/academia:

From the blogs:

Articles your clients are reading, (or should be):

Previous Post Next Post Return to Blog
Let’s get to work. Connect