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Hourly rates reward financial planner inefficiency

Discussion in 'Financial Planning' started by Simon Hampel, 20th Mar, 2009.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
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    Location:
    Sydney, Australia
    Hourly rates reward financial planner inefficiency

     
  2. bigbuddha

    bigbuddha Well-Known Member

    Joined:
    17th Jan, 2007
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    73
    Location:
    Brisbane, QLD
    Financial planner's if they are doing their jobs should never be telling their clients "to do nothing". This is a fall back position for the lazy adviser and clients should leave their adviser immediately if they ever tell them "to do nothing".

    There should always be assessment, revaluation, research and comparison to alternative strategies and assets, if the adviser and the client go through this process and "no change" is necessary then that's fine, but "to do nothing" is insanity and will leave clients and adviser's exposed.

    "to do nothing" really means the adviser "has done nothing". This is probably why many "advisers" find it difficult to charge per hour or charge based on a per hour rate, as this would expose their laziness to their clients. Harsh, maybe, reality most likely.