21 Oct 2019

JUST FOLLOW LAW (LOR)!

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Let us examine law firms.

The practice of billable hours (hour-based billing) is one of many yardsticks used “to measure the relative productivity of a law firm, which is calculated by dividing a lawyer’s billable hours by the total hours worked”, according to the Law Gazette. In essence, it is the hourly rate billed directly to a client for time spent on that client’s case.
Smokeball.com emphasises how billable hours are to be “treated like a precious resource and tracked and scheduled accordingly”.

SAME SAME, BUT DIFFERENT?

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Tell me, in what way are Financial Advisors any different?

Here is a rough breakdown of the whole process, inclusive of the hours spent working on the client’s case.

First Fact-Find Appointment (2 hours).

Case Preparation (2 hours).

Second Appointment (2 hours).

Closing (2 hours).

Servicing (2 hours).

Simply put, for a total of 10 hours dedicated to a client, based only on the full commission, exclusive of overriding, you would earn a ballpark figure of RM5K.

Since a lawyer’s billable hours are derived from dividing by the total hours worked on the case, in a similar fashion, one could apply the same principles on the workings of an Advisor.

Hence, a sum of RM5K over 10 professional hours, work out to be RM500 per hour.

Now, this, is how much you are worth as a Financial Advisor.

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