This is definitely inside baseball talk so, if you're not in the financial services industry, it probably won't make sense to you. That said, you should probably understand what it means if you work with a financial advisor. This is my response to an article that appeared in Financial Advisor IQ entitled, Why Advisors’ Fees Are All Over the Map...
MY RESPONSE TO THE ARTICLE
In most cases, especially in the investment business, pricing anomalies like this are squeezed out of the system pretty quickly. Not sure if this article really answers the WHY question posed in the headline although Bob touches on it at the end. Lack of information on the part of advisors and clients partially explains it. But, after 30 years of working under the hood of advisor practices, I would offer some additional reasons to consider...
* To appreciate this leverage please review the Lifetime Value of a Loyal Client chart below...
RAMBLE ON, the name of my SLOG was inspired by the Led Zeppelin song with the same name. It also describes the content, which reflects my very random observations about life, work and my endless pursuit of the sublime. See tag list below...
My "Fiscal Cliff" Playlist
"When you realize how little you know, you have become a philosopher."
~ Socrates ~