In a way, a financial planning service is like an annual maintenance checkup for a vehicle. The service provider will review the various parts of the vehicle, including the tires, oil, and other components. It will also map savings to goals that align with the priorities of the client. This is like taking your car in for an annual tuneup. It will take care of any irregularities and get it running like new again.
You may want to offer a project-based fee structure for your financial planning services. This can be advantageous for clients who only have a few questions or are not ready for a complete financial planning package. If your clients are younger and have less complicated financial planning issues, you can offer a monthly retainer plan that is more accessible to them. If you are not ready to charge a flat fee, you can give your prospective clients the first few months of service for free.
Changing the way you deliver your service depends on your clientele. While annual billing is an attractive way to wrap up annual services, it can prove problematic in practice. Many clients may experience sticker shock or cash flow squeezes due to annual fees. In addition, the SEC has made it clear that advisors cannot accept more than $500 in advance. If you collect $2,000 at the beginning of the year, you'll be considered a custodian under its guidelines.
Increasing the number of real-time financial planning programs has become common in recent years. These services are often called "Quickstart" offerings, and typically last only one or two hours. These programs are geared towards clients who can't afford a full financial plan. You can even offer project-based fees to clients with just a few questions and don't need a complete financial plan. This option is ideal for clients who only need a few tips to get their finances in order.
An annual billing service is a great way to wrap up services for an entire year. This strategy may sound appealing, but it's not for everyone. Some clients are not prepared to pay $5,000 in advance. In this case, it's a good idea to offer monthly retainers to attract new clients. The annual fee, however, should still be reasonable in relation to the amount of work involved. If you're planning to charge annual fees, consider whether you can provide the service for just $500. Visit our website to hire the best FFP Advisor today.
Subscription-based financial planning services can be more affordable for those who need more assistance. Some of these plans are geared toward those who only need basic advice and don't need a complete plan. A subscription-based fee allows you to offer more customized services to your clients. Moreover, the service is convenient for clients because they don't have to wait for their full payment every month. It is best to provide ongoing updates to your clients. Here is a post with a general information about this topic, check it out: https://en.wikipedia.org/wiki/Financial_planner.