The Implementation Challenge with Advice-Only Planning

What happens after the plan is delivered? Meagan Balaneski and Dave dig into the real-world challenge of turning advice into action.

💈💈💈

 So the UM basis allows us to not just take that plan, understand the client, know their own movement.

So we’ll talk about like risk tolerance. How do you judge a client’s risk tolerance? Part of that is their own understanding of risk. What is medium to them? You can see their cash flow, you can understand that, you know, the phone calls where they’re panicking, even if they didn’t act. So we have that ability to implement and take care of them and give it a, a frictionless process.

So I’m saying to somebody, Hey, you’ve got a non-registered account. There’s your lowest capital gain. We’re gonna roll seven grand over the calendar. You’re just ticked and now you’re maxed out in your T Fs a And they go, you do you, I trust you. Good, it gets done. Whereas if you tell someone, go and identify your lowest capital gain when they’re asked to go and do that on their own, now they have several different, um, tasks that they have to go out of their day, not their professional realm and go and implement it and understand the advice. And potentially the implementer has different advices. So now the client’s in a conflict, what do they choose to do?

Sometimes nothing.

This, this is all interesting because I mean, there’s parts of the advice only model. It used to be called the fee only model, and I still accidentally call it that.

But the advice only model that I find very appealing, and we have some tremendous practitioners in Canada. But your point is if you go and get the advice only model, you get the plan, it’s several thousand dollars, often extremely well done. There’s no bias built in there. But then the person has to go, they have to implement it.

So they have to either DIY it through one of the platforms out there, or they have to go to another person, another advisor. And as you say, they may get contradictory advice and often the execution breaks down.