Financial Plans Don’t Make Money…Investing Can


Financial Plans Don’t Make Money…Investing Can


Let me give you one of the secrets that the Financial Advisory industry doesn’t want you to know. By leveraging the mantra “Advice and Guidance” Advisors can justify and maintain higher fees with little or no responsibility. There is still way too many Financial Advisors that will talk to you about a “Glorious Financial Plan” and spend little time on the investment choices because they are preset or proprietary.  Some people pay a percentage of their assets for the financial plan and then their investments are sent to another money manager like a mutual fund that charges another fee.

You should not be paying a percentage of your assets for a plan, that’s an hourly charge. That would be like paying your CPA a percentage of your assets to do your tax return or your attorney a percentage of your assets to write you an estate plan. Sounds crazy, but that’s exactly how some investors pay their advisors for writing a financial plan.

I don’t know about you but when I go on vacation I don’t pay half 50% of the total cost of the vacation for the map. Plans are important but let’s put them in perspective. A plan won’t make you money, investing can. 

So just be weary of advertisements that promote a glorious retirement with pictures of yachts or fast cars. There is no magic investment out there, and when you are investing it shouldn’t feel like you’re being sold something. If you get that feeling, go get a second opinion.

Any opinions are those of Mick Graham and not necessarily those of RJFS or Raymond James. All opinions are as of this date and are subject to change without notice. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or a loss regardless of strategy selected.