Fee Only CFP - Is there any demand?

Hello All,

I am interested in assisting people with financial planning. I didn't think that I would get licensed to buy/sell investments but that I would work with "do it yourselfers" and produce a written plan with pie charts and the such. They could take that plan and adjust their investing strategies on their own through Schwab, Fidelity etc.

I am curious if there is any demand for such a service? I know there are "diy" types out there, but would they want to compensate me or anyone else for an investment plan.

I welcome anyone's thoughts.

As you may already know most folks in that line of business get paid by commissions generated from various products and I honestly question the "independence" when your pay check is dependent on the product you recommend. Having said that I think paying a financial advisor by the hour or some other formula that is NOT dependent on the commission generated by the product is desirable. The issue is a matter of visibility and understanding by the consumer. True the commissions are disclosed in prospectus or other sales material (in the fine print), but honestly how many people really know what they are paying.

I can tell this from firsthand experience because often times I will point out to the taxpayer the asset charge or management fees charged on their brokerage account that is usually listed in the year end statements, and I get the surprised look!

I don't think this is true and it is becoming less true as time passes. There are many people that charge just based on assets and some charge based on hourly fees, net worth, etc.

I have thought about this myself after being securities licensed for several years. There is just too much regulation for me, but if you did not advise on investments, maybe you would not need the licensing.

Check out https://www.xyplanningnetwork.com for ideas on fee-only planning. It is mostly a younger group of advisors but they have some very interesting non-commission based ways to approach getting paid.

As you may already know most folks in that line of business get paid by commissions generated from various products and I honestly question the "independence" when your pay check is dependent on the product you recommend.

I am interested in assisting people with financial planning. I didn't think that I would get licensed to buy/sell investments but that I would work with "do it yourselfers" and produce a written plan with pie charts and the such. They could take that plan and adjust their investing strategies on their own through Schwab, Fidelity etc.

I am curious if there is any demand for such a service? I know there are "diy" types out there, but would they want to compensate me or anyone else for an investment plan.

You have to be licensed once you're giving advice about investments for a fee - a necessary component of financial planning. You would be an investment adviser representative (IAR) of a registered investment adviser, or register yourself as an adviser.

Note that "CFP" isn't a license, it's a trademark, like Realtor or Good Housekeeping Seal of Approval. Those who license the mark are a wide mix - insurance types, stockbrokers, investment advisers, attorneys, CPAs. The "fee only" part is what determines the type of license you'd need. Fees for investment advice = IAR/RIA.

But DIYs are the worst candidates. You want the NDAs - Not Doing Anything. They need the help the most and are willing to pay for it.

I personally think financial plans, the long tomes spat out of software, are of very limited value. It would be hard to build a business around that.