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Subject:  Friend for a Financial Planner Date:  8/25/2000  5:32 PM
Author:  jrhansen Number:  24351 of 90771

I posted the following over on the Financial Planning board, but it looks like there isn't much activity over there of late, so I thought I'd make my inquiry here as well.

So I just finished reading the 3-part interview of financial planner Joel Kantor (interesting and, as it happens for me, timely reading). I was hoping to ask Mr. Kantor a few questions personally, however, his busy schedule makes that unlikely. In lieu of that, the interviewer, TMF Venus, referred me to this board.

A good friend of mine from high school just recently completed training at American Express Financial Planners and is now beginning to build a client base. From a strictly business perspective, what his company offers sounds like an okay deal. There's a one-time planning fee of about $350 and the plan is supposed to cover a time frame of about 2 or 3 years.

My friend gets paid a percentage of the planning fee and ultimately makes his money from the amount of assets under his management. So it seems to me that he has motivation to do well for his clients. He does not make money on things like equity trades and the comissions seem pretty reasonable.

I guess the reason I hesitate to move forward (and herein lies my question) is because he is a good friend. I trust him completely, but I know that emotions can run high especially when money is involved. Have (or do) any of you ever done this kind of business with a friend? My dad has some assets with a long-time family friend and I think it's been pretty much a wash--nothing great, nothing terrible. My first concern is our friendship. Any thoughts and/or experiences you can relate would be much appreciated.

Josh out.
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