Good Afternoon

First, feel free to respond and post to me, but forgive not leaving last name. I did not want to have to go through a process of compliance pre-approval, as my firm requires when i post publicly, using my full name.

Should you want to follow up or get my information, respond with such and I will reach you via your Twitter.

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I am an adviser, primarily fee-based, but over the last year, transitioning my practice to FLAT fee for planning/consulting based on time spent, pegged to an hourly fee.

As I make the current move, and even as I moved from commissions to fee-based 12 years ago, there has always been one theme as it related to compensation: what exactly is my value and how should I express that to clients.

Your points are valid and your advice prescient, especially in light of the recent DOL Fiduciary Rule debate (between the DOL and Financial Services Institute).

My one thought while reading your piece is that there should be a stronger point made as it relates to the value an adviser brings to a client and the quantification that may justify more than just an asset-based fee to them.

Yes, cost 'friction' to portfolios is material and between that and tax drag, that is low hanging fruit to add to long-term returns.

However, what are your thoughts as to the value of the following human advice and feedback not available from the non self-aware computer or index fund?

Some examples: matching a client's values or aspirations to financial products or solutions, guidance as life events evolve, expertise of a Socratic discussion on which investment or approach to take (ie long term care insurance versus simply saving $, Social Security taken prior to full retirement age, "should I loan my adult child $100k to invest in a tavern with his college friend,") or finally, the long term GAIN experienced the by advice we provided that helped the client avoid a mistake that may have caused a permanent loss of capital, or worse.

As the saying goes: your true cost is the price you pay less the value received.

Once again, my goal is in seeing a balanced conversation (not necessarily here, but anywhere it relates to financial services industry) on the value the ethical adviser may add and certainly less emphasis on what something simply costs.

Once again, thanks, Will, for a well written and thoughtful conversation.