Investor Update – Financial Planning is important, but you shouldn’t be paying for it Forever
I see these advertisements, with more frequency, on the importance of financial planning and how it is imperative that every investor have one. And to some extent I agree with this statement, however I do see this as one of the biggest rip offs in the Financial Services Industry.
Now I go against the grain here, and the “Establishment” in the industry, who will tell you that you need to work with a CFP®. (CERTIFIED FINANCIAL PLANNER™ professional). I believe that you need a plan and preferably have it created by someone who holds a designation, however, what is not said, is how much, or how often you are paying for this.
In many cases Advisors leverage the “free” financial plan and are compensated by the investments that are sold to the investor. Just understand what you are paying for. To me paying a planner a fee based on a percentage of your assets is like paying your attorney a percentage of your assets to write you a will, or paying a CPA based on how much you made last year. It doesn’t make any sense. Yes, there are several “Fee Only Financial Planners” meaning they will write you a financial plan and determine the optimal strategy for your investments, insurance and asset protection, and will charge you a onetime fee. From this point you should create a competitive environment to have professionals recommend and implement the solutions.
So again I will tell you “Ask questions”.
Our process is simple and transparent. We manage portfolios that own stocks and bonds directly. I feel it’s the most efficient way to manage portfolios. Efficient in cost and efficient in execution. I manage the portfolios in house which allows me to tell client what they own, why they own it, how it performed and what we’re doing about it. Advisors that have third parties manage their money cannot do that.
Any opinions are those of Mick Graham and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. All investing involves risk and you may incur a profit or a loss. There is no assurance that any investment strategy will be successful. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.
Investment advisory services are offered through Raymond James Financial Services, Advisors, Inc. Mick Graham & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC
