Issues in Comprehensive Personal Financial Planning

Abstract

Increasing numbers of firms within the financial services industry continue to organize around the concept of delivering comprehensive personal financial planning (PFP) services. PFP delivery models reflect the desire to control client relationships and realize economies of scope. In this article, we argue that the need for comprehensive PFP is well grounded theoretically, although research to guide the appropriate application of the theory remains lacking. Comprehensive PFP is not without its potential costs, including risks associated with lessened advisor diversification at the client level, reduced transparency, and agency problems. To address these risks, consumers likely will turn to credentials as a proxy for quality and trustworthiness.