Page 39 - Investment Advisor October 2022

Conclusions

FINANCIAL PLANNING IN FOCUS
By Jeff Berman

6 Tips for Advisors When Talking Fees

With Clients

Advisors often make the fee conversation more awkward and
complicated than it should be, Michael Kitces and others say.

for the fee conversation that were pro-
vided during the webinar by Kitces
and his expert guests: Bill Bachrach,
CEO and chairman of AdvisorRoadmap
and Bachrach & Associates, and Carl
Richards, a certified financial planner
best known for his decade-long “Sketch
Guy” column in The New York Times.

1. It is crucial to convey the
value that you offer during an
introductory client meeting.
“I have a favorite saying, and that’s that
the success of what you’re currently
f there is one conversation that on an advisor’s own knowledge and doing is built on the foundation of what
many advisors dread more than any expertise but also on their ability to immediately preceded it,” Bachrach said.
Iother, it’s the fee conversation — deliver positive client outcomes, accord- “Truly comprehensive financial
whether it’s with prospective clients or ing to Michael Kitces, head of planning planning, truly being a trusted advisor”
telling existing clients that the fee they strategy at Buckingham Wealth Partners is much different than being a salesper-
charge is going up. and chief financial planning nerd at son who “gathers assets or uses plan-
However, all too many advisors make Kitces.com. ning as a tool to sell a product rather
the fee conversation more awkward and Meanwhile, because investors today than real planning,” he said, noting that
complicated than it needs to be, accord- have access to much more information advisors should convey that to prospec-
ing to industry experts who spoke than they did in years past, it is likely tive clients.
during the recent Kitces.com webinar that, at some point, a client is going to But “what precedes this discus-
“Introducing The Fee Conversation To push back on an advisor’s pricing and sion about the value in what you do” is
New And Existing Clients (How To wonder why they should pay more than important, he said, suggesting advisors
Talk About What You Charge Without what another advisor with a seemingly schedule a meeting with both spouses,
Being Awkward).” similar “comprehensive financial plan- asking them to have all their financial
The fact of the matter is the value ning” offering charges or more than documents handy, “preferably in your
Adobe Stock today is significantly more esoteric than sor charges, according to Kitces. home, never in their office where there
what an even less expensive robo-advi-
office” or by Zoom but “never at their
that a good advisor brings to the table
are a lot of distractions.”
it was in years past and relies not just
Below are some of the standout tips
OCTOBER 2022 INVESTMENT ADVISOR 37