…is there’s no barrier to entry.
Okay, there’s a small barrier to entry. If you manage other people’s money, you have to pass a few regulatory exams.
But do you know what those exams entail?
You have to memorize a bunch of stuff for 2 months, pass the exam, then you immediately forget all the stuff you learned.
And after you pass those exams, you are determined to be a “successful financial planner” based on how much money you manage.
The AUM Cancer
It’s called Assets Under Management or AUM.
The bigger your AUM, the bigger deal you are considered to be.
That focus has created an entire industry where the name of the game is NOT helping people get real, tangible financial results.
Instead, it’s created shark-infested waters of “asset gatherers” which includes roboadvisors and the schlep at Big Brokerage, LLC. and even most “fiduciary” independent RIA’s.
If the bulk of your revenue comes from charging an annual fee on the assets you manage, then you are a salesperson. Period. Sorry, not sorry.
And I have nothing against salespeople. I LOVE salespeople.
But would you hire a doctor who only gets paid if you buy his prescriptions? Of course not.
So why would you hire a financial advisor whose sole source of revenue is to sell you his investments, regardless if that’s old school commissions or new school AUM fees?
We are the 0.4%
And that’s why myself and a very teeny tiny portion of the financial planning population are changing the game by generating most of our revenue from subscription fees.
Financial Zen’s revenue is 70% membership fees and only 30% AUM fees.
Our advice isn’t dependent on us “gathering your assets”.
We actually don’t even talk about managing your money until Month #5 of our 6 month onboarding program.
In fact, we don’t even care if we EVER manage your money. Keep it at Wealthfront or your Dad’s old school broker. As long as it’s invested correctly, I really don’t care.
There are about 250,000 financial advisors in the U.S.
Only about 1,000 of us offer our services without a focus on gathering assets.
We are the 0.4%.
We are the future.
Sincerely,
Ranting Rickie V
