Updated Tuesday, September 1, 2015 as of 6:10 AM ET

Sounding Off: Mandatory AUM Tax?

Professor John Grable touched a nerve when he suggested in Financial Planning’s current issue that a mandatory AUM tax on advisors could help make financial planning available to all American families. Actually, he touched a lot of nerves.

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Comments (6)
Isn't it funny how a person who doesn't work in a "for profit" job is very adept at giving away income from a "for profit" firm. This is the typical Ivory tower rants we always hear from academia. They know that they will never have to live with or be subject to their socialistic plans. Free Markets exist for a reason, and socialism has been a proven failure, yet academia still insists on extolling the virtues of a broken system. There are already numerous planners who volunteer for pro bono work and there are numerous programs available to the poor and underserved. The poor and lower middle class simply choose not to use the resources.
Posted by Tim E | Friday, January 25 2013 at 1:30PM ET
Oh great, now academia helps to create a new entitlement, financial planning for folks who are doing so well. And who is going to provide the planning, and of course, the government will have its own prescription for how to give advice and what advice to give since it is paying for the advice...actually the planners are paying themselves via the tax on planners to pay for planners...now that makes a lot of sense, NOT!
Posted by Charles S | Friday, January 25 2013 at 1:55PM ET
Let's Socialize Financial Planning if that's what I am understanding. Then let's do the same with the legal, medical, tax industry as well!!!
Posted by E H | Friday, January 25 2013 at 1:56PM ET
I wish I had as much time as the academics (and those "financial planners" that spend more time writing blog posts, debating the merits of fees versus commissions, Twittering about their latest industry white paper, etc). More of these people need to get on the front lines, start meeting with clients of all levels, and seeing that what they view from their seat in academia (or alternatively, the back office) is actually a little different here in the conference rooms and at the kitchen table.
Posted by Chad N | Friday, January 25 2013 at 2:22PM ET
Basic financial planning education does not need financial planners. Basic financial planning should be done in the high schools. High schools should teach basic chackbook management and basic investment management. Having financial professionals teach bacis skills to low income is like having a surgeon teach first aid. It's way more than needed.

The eductional system is failing and now they want us to make up for their failure. Let the education system teach "basic" everything, like a basic education is supposed to do.

As to the "elitest" slander, are surgeon's "elitest" because they don't teach basic first aid to the public?
Posted by VICTOR | Friday, January 25 2013 at 3:57PM ET
...and this is what they are teaching for CFP accreditation these days? Seriously? Any further rankings relative to the "Best Colleges for Financial Planning" that include this misguided socialist school of finance will seriously be questioned for integrity.

What, correctly, should be taught is that by creating a financial practice that is economically stable...1) one can take on clients of less means and net worth, but whose desires for a secure financial future are no less important to them, and be able define a strategy that ensures their financial success...and... 2) be able to have the marketing budget to fund the awareness and acquisition of this client group so it grows over time.

Maybe this professor needs to bone up on Business 101, or better yet, put is own money in play and begin practicing what we wants to preach.
Posted by James P | Monday, January 28 2013 at 10:23AM ET
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