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The advisory profession is set up to encourage selfishness and greed. For that to change, compensation must change. These thoughts are radical, so take a seat before you read.

These fee debates are so childish

I have four kids under seven years old. Sometimes you advisors remind me of children the way you taunt, mudsling, and “cancel” each other over this fee debate about who charges commission, who charges too much, who doesn’t disclose it like they should, who’s taking advantage of the client, etc.

Nanny nanny boo boo! You’re a commission-only advisor and I’m a fee-only advisor and I’m better than you!

Just like the mom I am, I’m going to put you all in the time-out chair.

  • Fee-only advisors, stop shaming the fee-based and commission-only advisors.
  • Fee-based and commission-only advisors, stop shaming the fee-only advisors.
  • Flat-fee and hourly advisors, stop shaming everybody else.

I have people who haven’t liked any of my articles in years, and the minute I post something on LinkedIn about “the fiduciary halo” they chime in to the debate.

And the thing about it is that you’re all wrong.

All forms of compensation have conflict.