Photo by Clearly Ambiguous

Everybody I know is concerned about their salary because they want to save for retirement. Financial advisers are no different from the human being next door. They need to earn a living as well. Unfortunately, such clients are going to be sold expensive product. Why? It has to do with low levels of productivity.

Productivity is the amount of output for each unit of input. For financial adviser, the “input” is the time spent on the case. The “output” is what he needs to earn. Let’s reverse engineer this situation.

Let’s say he needs to earn $5000 a month in take home pay to feed his wife, children and save money for retirement. Let’s say that the gross profit margin is 70%. Read more…