I greatly appreciate John Lefferts’s comments regarding my last blog , and agree with most of his points. But I have to respectfully disagree with his assertion that separating financial planning from investment management will solve the problem. History, economics, client demand, and common sense beg to differ.
It’s a clich? for sure, but when Willie Sutton said that he robbed banks because “that’s where the money is” he may have said it best. Perhaps the clearest lesson of the nearly 40-year history of financial planning is that charging fees for managing client assets is the least conflicted, most practical, most marketable, and most economically sound business model for delivering financial advice.