Today many advisors are interested in the benefits of transitioning to fee-based financial planning. While the rewards might be great, it does take some time to make a return on your investment. Some evidence suggests that brokers who make it through the first 3 to 5 years generally double the level of fee-based business in the following year. Many, however, are anxious about the transition.

Frank Heitker is a Senior Planner at Premier Planning Group in Cincinnati. Many of Frank’s clients have traditionally been small business owners, but he is now beginning to focus on company executives and the families of his clients. Premier Planning Group primarily provides financial planning, benefits, retirement, insurance and estate planning services to the high net worth client. Frank had been a commission based planner his whole career.

Frank was frustrated with the comprehensive financial planning tools on the market. He felt they did not offer a high enough quality output to justify charging fees. In September 2003, Union Central started a pilot of the AdvisorPlatform and in January 2004 Premier Planning Group became the first agency in Cincinnati to use the system. Union Central found that the system was a great way to recruit high end producers and new young staff, who are attracted to the benefits of working on a high performing system.

One of the greatest advantages of utilizing the AdvisorPlatfom for Frank has been his improved capacity to transition to fee-based planning. He’s demonstrated the system to nearly all of his existing clients and moved many of them onto the AdvisorPlatform. New clients have been charged an initial planning fee and a retainer in subsequent years. In some cases this has involved multi-generational families going on the system with Frank benefiting from the opportunity to gain greater assets under management. Frank estimates that he’s been able to gain $5 million from new clients' assets under management and receive between $2,500 and $5,000 in renewal fees.

Frank says, “Most of my clients have instantaneously recognized the value of the AdvisorPlatform. All age groups have appreciated the increased control they have over their future and the ability to collaborate with me on planning.” Frank’s clients have received the tangible benefit from being on the system that he was seeking; allowing him to readily transition them to fee-based planning.