Should advisers cut fees to help clients during COVID-19?
Another approach has been offering to lower fees for existing clients who have taken hits to their income.
“I have reassured existing clients that if their income is affected by COVID-19 that I would discount my fee commensurate to how much their income has been affected,” wrote Donovan Brooks, founder of Missouri-based Storyline Financial Planning, which caters to Christians. “If their income has been reduced by 25%, then I would reduce my fee by 25%, until everything has normalized.”
Brooks sent that message to clients about a month ago, and fortunately, he said, no one has had to take him up on the offer.
“The response has given my clients peace of mind and assurance that I’m with them through this thing,” he said. “This is a time when people need quality financial advice, and someone to listen to, more than anything.”