Specialized Knowledge Wanted: But Who Will Pay?

The August poll results are in and almost everyone is in agreement: specialized knowledge is in demand from tax and financial advisors by their clients. However, people don’t necessarily want to pay for it. . .or is there another problem?

The poll question was: “Are consumers expecting more specialized knowledge and advice in their relationships with tax and financial advisors?” and the verdict is in. A resounding 89 percent of respondents agreed that this is what their clients demand.

But, there is a problem, as Anne points out: “Yes. They expect more. However, the challenge is that they don’t want to pay for it. They think the fees for tax preparation covers all the extras.”

But, is that because as an industry, we’re failing to articulate the value and benefits that come from holistic advice, as this comment from Patrizia suggests? “As advisors we need to start charging for advice even if a product is not purchased. I agree with others that clients do not want to pay for the advice. We only get paid if the client purchases the products, but now we need to market differently and advertise our advice as a service. Services are not free.”

After all, transactional professional service providers like doctors don’t face this roadblock, per Margaret: “We live in a busy world and our priorities are in the wrong order. The access to information is so easy. Just “Google” and we think we will get the answer. If we are sick, we want to see a doctor, but we do not ask him/her how much they charge – but doctors don’t work for free. We have to stop expecting that from other professionals.”

So how do advisors overcome challenges like this one, outlined by Gloria? “More and more individuals think if they run into you at a store they can discuss their business affairs and get professional advice and not have to pay for it. When you ask them to make an appointment, they come back with – ‘I don’t have time’. Money is a very big issue with individuals – if their money is not making money they don’t want to give it out. Professional advice is worthwhile, and in the end very productive. But so many individuals do not see that.”

The bigger problem could be that the cost-benefit ration for advice, has not been quantified. To answer the question, WITFM (What’s in it for Me?), start with the facts: outline what holistic advice-based services will do for them, and how spending a little bit of money will help them keep what they’ve earned, before and after tax, especially with the right investment, retirement and succession planning strategy.

We thank everyone who participated. Weigh in on this month’s poll: “Is it time for a comprehensive tax reform to address issues of fairness, certainty, and simplicity as well as minimum income and wealth taxes? Please tell us why.”

Additional educational resources:

Better establish your value proposition and demonstrate that you have the credentials to provide the holistic advice your clients desire. Enroll in the MFA – Business Tax Services Specialist or the Real Wealth Manager Designations. Better educated clients on financial matters, and tax-efficiency at all life stages will also help. Pick up your copies of Essential Tax Facts by Evelyn Jacks to share with them today!

COPYRIGHT OWNED BY KNOWLEDGE BUREAU INC., 2018.
UNAUTHORIZED REPRODUCTION, IN WHOLE OR IN PART, IS PROHIBITED.

Refer a Friend	Research	Calculators	Course Trials