To reply to some of the other posts here, other professionals do also have “value pricing” for their services. Ask any attorney who charges for an estate plan or other advice. Some of it is canned – just like some financial plans have boilerplate. But it is advice in the context of the individual.

I’m reminded of a story about the plumber who charged someone $1000 to do something that took 15 minutes. The homeowner demanded a detailed invoice: $10 for tool, $990 knowing where to use it. The same is for financial planning.

I cannot simply give away years of knowledge in a plan that addresses all the complex areas of a person’s like for $200. There is the investment of my time in the client and the time to have acquired the training, knowledge and tools to do the job.

For my clients I will NOT invest without having a financial plan. Without the road map, you’ll never know when you get to your destination.

For those who feel 1% is too much, what about lawyers who charge 33% for a contingency case?

In my case I offer individuals the choice: an assets under management fee based on a declining percentage or a retainer fee to cover the time for research, reviews and some implementation. I even offer a flat fee regardless of assets but counting all assets – discretionary or non-discretionary – and it includes updating the financial plan, tax preparation, investment research, monitoring and implementation. And I’m acting as a fee-only fiduciary.

You’re NOT going to get that with any Flagship Service.

I accidently came across your website and feel compelled to reply.
As a quick note, I just returned from the Morningstar conference in Chicago and I got a chance to meet and speak with Jack Boggle. He sat next to me in a breakout session discussing Modern Porfolio Theory.

Anyway your article is good but obviously you do not have much real world experience in dealing with HNW clients. They often require a lot more attention than just allocating 1 million dollars to amoungst 6 or 8 low cost index funds. When you get to investible assets of 1mil+ generally the complexity of the HNW needs go well beyound this simple task. The cost, as far as the fee I charge is really immaterial versus what they are getting for that fee. I have had several clients over the years tell me they really do not care what they are paying(within reason of course) as long as their expectations are met. The expectations, at least in my practice, are laid out in the IPS statement and the contractual agreement the client signs. Real world Financial Planning and investment management done at a high level with HNW families(1million of investible assets+), demand much more than a plan created over the phone and assets managed by someone they have never met, been around, been referred to, can call at home, would consider a trustee or steward of their financial affairs if something tragic were to happen to them, etc. If financial planning were really as simple as you think that it is, everyone would be at Vanguard. Just like every millionare would be driving a Toyota or whatever car you feel has the best value for the buck in your one size fits all utopia.