Physician's Money Digest, June15 2003, Volume 10, Issue 11

Another profit builder:

Financial planners who chargefees based on the assets in a client'sportfolio are taking a hit as stockscontinue their multiyear slide.Planners are also feeling someexpense-side pressure, as the floodof investors seeking professionaladvice has caused many to add staffto maintain the level of service theirclients expect. The resulting profitcrunch is bringing about somechanges in the way planners chargefor their services, as more financialgurus are opting for hourly feesrather than a percentage of assetsunder management or a retainerbased on the size of the client'sholdings. hiring support staff as independentcontractors on a project basis,rather than as full-time employees.