POSTED BY November 29, 2012 8:56 am COMMENTS (2)ON
This is a question that been troubling me for some time and I would like to share it here to see how others (investors) think about this:
Say you want to take professional advice for your financial life and decide to go to to certified financial planner because a CFP is the highest professional qualification. You go to several websites and look at the fees. The fees range from Rs. 5000 to Rs. 20,000+.
Who will you choose? The cheapest like a term plan! After all the financial math is the same whether they are a CFP or not and irrespective of fees.
The CFPs with hefty fees talk about the “value” they offer. This can never be immediatly clear to anyone. The ‘value’ part will become apparent down the line when your investments grow in line with your expectations but reviews are charged separately anyway and every plan comes with a disclaimer!. So how does one choose a CFP? It is naive to assume higher fee implies higher value!