Fee-based Planning

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Sep 24, 2008 1:50 am

I have been in this business for 2 years now…(first 18 months in a training program and studying for 7 and 66) so in reality about 6 months and I have only been selling for about 3 of those months. I have no problem getting appointments. I contact about 50 people a week and out of those I can usually get 3-5 SOLID appointments for the week. I love meeting with clients and finding out their retirement and planning needs but when I go back on a follow up appointment to present my proposals, the prospects say that they aren’t interested in buying anymore life insurance, disability insurance, etc. that I believe that they need. Therefore, I don’t get paid…

So, I was looking into possibly getting into Fee-based planning. Since I have no problem setting appointments, gathering the initial information, and preparing a proposal/solution, then I think that I should get paid for preparing and offering a plan. (Without having to sell a certain product to earn a commission.) However, I am not able to get paid with fee-based planning at my current employer without having the CFP designation.

My questions are:
1.) What route do I take to obtain the CFP designation? (I was reading on the CFP Board website that you have to have so many hours of coursework before you can even sit for the exam so I was considering obtaining a M.S. in Financial Planning which allows you to sit for the exam.)

2.) Is it possible to make a living doing fee-based planning? How much can you charge? (i.e., per hour or per plan)

3.) How easy is it to start my own planning business (as opposed to working for my current employer)

Thanks for any input…sorry about the length.

Bucs are 2-1!!!

Sep 24, 2008 5:29 am

Fee-Based planning is not the solution to your problem.  Your problem is that you don't have sales skills and even if you did, you wouldn't be very successfu. 

1) The same people who won't take your suggestions to buy life and DI also won't agree to pay you a planning fee.  You must be able to sell either a product or the need to pay for planning. 

2) You are only working 1 day a week.   Contacting 50 people and seeing between 3 and 5 people is only one day of work.    Based upon your activity level, you have only worked the equivalent of 12 days so far. 

Sep 24, 2008 8:45 am

no joke. You only contact 50 people a week? Unless each call is an hour long, what are you doing with your time?

Sep 24, 2008 9:29 am

at EDJ, we tell rookies 25 per day