Michael Kitces: Smart Ideas (and a smart blog) Well Worth Your Time

I’ve always respected Michael Kitces and plan to include much more of his wisdom in the future. Financial viability should, BEYOND DOUBT, be a part of your due diligence process when choosing an advisory firm.

From today’s post: “But beyond the financials of the advisory firm owner, family members, and successor owners, the profitability of an advisor firm matters for another reason as well: the stability of the practice helps it to retain its staff. After all, a firm that is only marginally profitable simply has no flexibility to deal with the vicissitudes of business; like living from paycheck to paycheck, it creates an environment where even a small disruption can have major ramifications, as many firms discovered when the 2008-2009 financial crisis forced them to fire staff and reduce services to clients at the exact time clients needed them the most.” (emphasis added)

[“Why Profit Margins Should Matter To Any Financial Planning Firm,” Kitces.com, 5/27/2013]

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