After a multi-year transition, Annette Martin's fee-based business accounted for nearly half her production by the end of 2013. Moreover, her total production has increased to $1.2 million from $520,000 in the past four years. “It was a good idea to shift over to a more fee-based practice,” says the Fulton Financial advisor.

For one thing, besides having significantly better production numbers, Martin says, “Now my income is absolutely more predictable.” She recalls, “Back in 2008, before I was doing any fee-based business, there was a lot of panic. Now, with my fee-based clients, even when the market goes down, I don’t get many of those frantic phone calls. People understand that with a managed account they have diversification and flexibility, so they don’t have to read something bad in the paper and then think, ‘Gee, I should have shifted my assets last week.’” In making the shift of clients from a transaction-based to a more fee-based practice, Martin says the first thing she considers is asset size. “As a bank-based advisor, I have to serve everyone, but you really need to have at least $100,000 in investable assets in order to build a diversified portfolio,” she says. “With at least that much money to work with, we can build a portfolio that’s appropriate to the needs, desires and risk preference of the client.”

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access