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Understanding the Question: Why Pay Ongoing Fees for Financial Advice? A common question is, “Why should anyone pay ongoing financial advice fees?”
The simple answer is no one should pay unless the advice provides real value.
When clients doubt the value, I use an analogy—a journey towards financial independence, like travelling overseas by plane.
The Journey to Financial Independence: Like Taking a Flight
Having grown up in Australia, England, and Ireland, I’ve taken many flights. Each flight follows a clear process, similar to financial advice.
Step 1: Getting the Plane Off the Ground (Implementing the Plan)
Before takeoff, several vital tasks happen behind the scenes:
- Calculating Fuel Needs: The pilot calculates how much fuel is needed, similar to setting a rate of return (RoR) target.
- Balancing the Load: The seat allocation team balances the plane’s weight, like asset allocation in a portfolio.
- Pre-flight Checks: The crew performs checks akin to assessing risks in a financial plan.
Once ready, the plane takes off and heads towards its destination—just like when a financial plan is implemented.
Step 2: The Pilot’s Role Doesn’t End at Takeoff
Although planes have autopilot, pilots remain essential throughout the flight because:
- Weather Conditions Change: Markets and personal situations shift.
- Other Aircraft: You must avoid risks and conflicts.
- Monitoring Systems: Fuel and systems need constant checks, similar to tracking investments and adjusting plans.
Most flights go smoothly, and passengers often don’t notice this work. But when turbulence hits, the pilot’s voice reassures everyone.
Step 3: Handling Unexpected Events and Safe Landing
If serious problems occur—engine failure or diversions—the pilot acts decisively to ensure safety.
Similarly, financial advisers help clients navigate life changes or market volatility to keep goals on track.
Finally, landing at your holiday destination is like reaching financial independence—time to enjoy your achievement.
Why Ongoing Fees for Financial Advice Make Sense
Despite autopilot technology, every plane still has a pilot.
The same applies to financial advice.
- The financial plan is getting off the ground.
- Ongoing advice is the pilot monitoring and adjusting course.
Clients who only want a plan without ongoing support must be ready to manage all challenges themselves—becoming their own pilot.
Those who prefer a safe landing without worrying about flying pay ongoing fees for peace of mind and success.
Conclusion: The Value of Paying for Ongoing Financial Advice
Ongoing financial advice fees are more than a cost—they’re an investment in safely reaching your goals.
It’s the difference between setting a course and arriving on time, enjoying both the journey and destination
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