Experts Warn of Financial Planning Deluge National Underwriter (Life/Health) (09/18/00) Vol. 104, No. 38 p.5; Bell, Allison
At the recent Financial Planning Association
conference, experts who spoke predicted that the demand for good
financial planners will be higher than ever in the near future.
A recent influx of financial planners into the sector, however,
does not bode well for small, all-purpose planning firms since
they do not have any sustainable competitive advantages. The
advent of Internet and high-tech call centers has not affected
the popularity of good flesh and blood advisors. According to a
recent survey, 25 percent of CPAs who responded expressed an
interest in incorporating planning services into their firms.
Experts also predict that the referral business will shrink as
CPAs try to keep business for themselves. One analyst advised
firms to expand or to consider specializing in a niche market
while competition is relatively light.