secondary side business or PT job as financial planner implementing HBPP?
Posted: Sat Apr 16, 2011 9:01 pm
have any of you worked as a financial planner as a side business or PT job, implementing the Permanent Portfolio, for consumer customers in your metro area that you can easily physically meet with?
As an outsider to that business/occupation, my guesstimate is that there would be more chance of it as an entrepreneur, than as an employee. My guesstimate from seeing customer materials from Schwab & Vanguard, is that any financial planning/financial services company is going to be very "stock bug" & "anti-gold bug", & limit the autonomy of its financial planners, at least limiting their planner advising any asset allocation that is <50% stock, or >10% gold.
Would one need to buy a professional liability insurance policy to provide this type of service? If so, would that insurance cost be reasonable, given a planner who is only doing it on a small-scale PT basis?
I suppose the revenue model could be
1 get authorization to manage the customer's custodian accounts, take something like a 0.2-0.5% annual management ER. Although implementing & maintaining the HBPP is not rocket science, apparently there are some people that lack the intellectual curiosity/priority to learn about asset allocation/etc, & prefer to pay a planner.
2 pure consulting service hourly fee ($50-100/hr?) to hand-hold the customer in to setting up & maintaining their own custodian accounts. This service would probably have no or minimal sales, because the type of person willing to manage their accounts themselves, would likely be comfortable learning the "how-tos" for free, via this forum, talking to Vanguard phone support, etc.
Any thoughts? Thx in advance
As an outsider to that business/occupation, my guesstimate is that there would be more chance of it as an entrepreneur, than as an employee. My guesstimate from seeing customer materials from Schwab & Vanguard, is that any financial planning/financial services company is going to be very "stock bug" & "anti-gold bug", & limit the autonomy of its financial planners, at least limiting their planner advising any asset allocation that is <50% stock, or >10% gold.
Would one need to buy a professional liability insurance policy to provide this type of service? If so, would that insurance cost be reasonable, given a planner who is only doing it on a small-scale PT basis?
I suppose the revenue model could be
1 get authorization to manage the customer's custodian accounts, take something like a 0.2-0.5% annual management ER. Although implementing & maintaining the HBPP is not rocket science, apparently there are some people that lack the intellectual curiosity/priority to learn about asset allocation/etc, & prefer to pay a planner.
2 pure consulting service hourly fee ($50-100/hr?) to hand-hold the customer in to setting up & maintaining their own custodian accounts. This service would probably have no or minimal sales, because the type of person willing to manage their accounts themselves, would likely be comfortable learning the "how-tos" for free, via this forum, talking to Vanguard phone support, etc.
Any thoughts? Thx in advance
