Yesterday, I was reading an issue of Financial Planning Magazine (a magazine for financial planners). This particular issue was the 2013 technology survey and went through the different technology trends as it relates to financial planners and the top technologies they are using in their practices today, like portfolio management software, CRM (customer relationship management), and financial planning software. We use a financial planning software called MoneyGuide Pro. It is often considered one of the best in the industry and personally without it (or at least another similar type of software) it would be almost impossible to do my job. It would be like a tax preparer filling out tax returns by hand - it can be done but it is extremely inefficient and prone to mistakes. Within this Survey was the surprising statistic that over half (57.5%) of commission based financial advisors do not use this type of software! This confirms my suspicion that these type of advisors (commission based) just want to transfer your money, get it invested and collect a commission check. As a fee only financial advisor, the most important thing we do for our clients is create an individual financial plan. This outlines their objectives and guides how the portfolio needs to be invested. It is at the heart of everything we do.
Fee Only Makes a Difference!