I guess in the end, I just dislike the blatant and stereotypical attack on the profession. Not all commission based planners are selling products to those that don’t need it. It is the same thing when people attack PI attorneys.

The only profession that we all can attack are those running auto body shops and mechanics LOL! Obviously joking.

But I digress, our most successful guys say up front something like…”I get paid in 3 ways, fee, product and referrals.”

This leads to an interesting relationship. If the person was looking for just an investment product or life insurance product, then the financial planner relationship may not happen but there was still a sale. THIS IS NOT EVIL, nor is it indicitive of an unscrupolous advisor.

That being said, our best (multi-generational) relationships occur when there is a fee involved. It hightens the relationship to a professional one, and takes the question of “how we get paid” out of it.

While I have rambled on long enough – my main point is that, just because a planner doesn’t take a fee in a certain case does not make the relationship worthless. In a lot of cases, a fee is unwarranted.
Example: 30 year old couple each making $80K just need some investment advice and life insurance to protect their new born. Does this warrant a fee? for a fee’s sake? I don’t know but if the planner doesn’t choose to utilize one…does not make the relationship inherently bad.

It becomes inherently bad when you have a few guys out there that shouldn’t be giving anyone advice on anything trying to make a quick buck placing products where products are unnecessary. I am sure you have to defend attorneys on a daily basis because we aren’t ALL bad people…just the blood sucking PIs, escrow stealing jerks, and/or heartless Defense Insurance bastards (I obviously don’t feel that way…just examples).

Just a few thoughts from someone that is in the world. I have a feeling though I am going to get a “matter of fact” TML response.