Join H.D. Vest - Is Fee Planning Right for You?

Is Fee Planning Right for You?

Some successful commission based tax professionals are wondering if adding fee planning to their practice is worthwhile. What does it take to successfully add that service? Is it the right service model for you and your clients?

Some firms use the term "wrap accounts," others refer to it as "advisory accounts" and still others call it "fee planning." Whatever you call it, managing and servicing clients' portfolios for a fee, based on the account value, is emerging as one of the most prolific trends in today's financial services marketplace. Despite the advent and popularity of online brokerages and no-load mutual funds, many clients still recognize and value qualified comprehensive service. As the marketplace becomes increasingly fast-paced and crowded, Advisors who offer the most personalized service may distinguish themselves from the crowd.

Since 1988, H.D. Vest Advisory Services^SM (HDVAS) has been bringing sophisticated money management techniques - previously only available to high-net-worth clients and institutions - to the individual investor. In evaluating the fee planning programs you make available to your clients, you need to consider how involved you want to be in the day-to-day management of the portfolios and the tools and support available to you.

You should consider:

Do you have the time and procedures to bring your service level up to the expectations of clients who are paying you a fee to manage their assets?

Is your staff trained to offer this new service level?

Do you have access to professional reports for your quarterly client meetings?

Do you have the online technology to manage the trades, monitor and balance the portfolios you create?

Do you have a financial services partner who can provide comprehensive compliance procedures and review to keep you out of trouble?

Do you have a fee planning solution platform that gives you flexibility to meet your clients' needs?

Regarding fee planning solutions, you might look for a range of products. For example, H.D. Vest offers three distinct programs to help meet clients' diverse needs. Each offers flexibility in management style and portfolio customization. These programs differ in how they are managedby H.D. Vest Advisory Services, by the Advisor or by a private money manager.

Overall, you need to consider the advantages that fee planning offers your clients and your practice:

Advantages to Clients

Advantages to You

Professional Guidance
Advisory Consultants are able to add the talent of an experienced team of portfolio managers and economic analysts to their own efforts to help their clients. Clients appreciate the comfort of having professionals manage their money, because they are relieved of the burden of making individual buy-and-sell decisions without the benefit of professional investment training and experience.

Payment Received for Ongoing Services
The ongoing fee received in fee-based programs compensates the Advisor for the time spent servicing existing clients and reduces the pressure of having to continuously prospect for new clients.

Time Saver
We are in a service-oriented society. Most clients do not want to take the time to fully research and construct a sophisticated investment program at the expense of spending less time on business and family interests. They are looking for professional advice and are willing to pay for it.

Less Administrative Hassles
Many investment professionals are also attracted to the administrative efficiency available, including the detailed quarterly reports that consolidate and simplify the analysis of a client's account. This allows investment advisors to spend more time servicing clients and less time bogged down in administration.

Simple Payment Structure
Clients enjoy the predictability of fees and a clearly defined association between the costs and the services they receive.

Stronger Client Relationships
Another benefit of fee-based services to Advisors is that it establishes a true consulting relationship with clients and positions them in a pivotal role in the investment selection process and in providing performance reviews.

Greater Trust in Investment Advisor
Clients know that investment decisions are not made to generate commissions. In fact, clients have the ability to hire and fire investment advisors without the costs associated with commissions.

Increased Business Value
The Advisory Consultants who have created successful fee-based practices are building an opportunity for business value for themselves. A successful fee-based business generates an opportunity for predictable and ongoing revenue.

Constant Communication
Clients want to know their Consultant has a real concern for their financial needs and objectives. This relationship is maintained through the quarterly meetings and is expanded as clients continue to work with their investment advisor on the investment strategy that they have employed.

Opportunities for Referrals
Quarterly reviews are a great opportunity for Advisors to ask their clients about their children, grandchildren and careers, to review the goals and objectives, and how the client plans to pursue them. The more client contact an investment advisor has, the greater opportunity for additional investments and referrals.

In order to offer fee planning programs, you must register as an Registered Investment Advisor (RIA) with your state or as an Investment Advisory Representative under the umbrella of an RIA . Depending on whether you hold securities licenses and which ones you hold, regulations require that you obtain the Series 65 or 66 (Uniform Investment Advisor) license. There are some exception possibilities for those with a CFP^®, ChFC, PFS, CFA, or CIC designation, depending on your state.

To find out how you can add investments and/or fee planning to your practice and potentially make a difference to your clients and your own bottom line, e-mail us today at newbusiness@hdvest.com or call us at (800) 742-7950. H.D. Vest offers a convenient fee planning affiliation option.

Copyright ^© 2006, H.D. Vest Technology Services, Inc. All rights reserved.
H.D. Vest Financial Services^® is the holding company for the group of companies providing financial services under the H.D. Vest name.
Securities offered through H.D. Vest Investment Services^SM, Member: SIPC,
Advisory services offered through H.D. Vest Advisory Services^SM,
Non-bank subsidiaries of Wells Fargo & Company,
6333 North State Highway 161, Fourth Floor, Irving, Texas 75038,
(972) 870-6000.

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