Performance Related Fees are not Smart

Investment news' Jeff Benjamin published his view that in future Financial Planning firms will be encouraged by their clients to charge fees commensurate with the investment performance that they achieve. http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20100214/REG/302149992

I feel that this entirely misses the point of a Financial Planning firm. Financial planning is about aligning clients assets and goals and work on getting from one to the other. Where in that process is investment performance mentioned? Financial Planners have three roles, to design a plan of action, to select appropriate products for the client and then create in investment strategy to achieve the goals. Why should the clients payments be related to the least important area of the three?

Steve Martin CFP, is the Managing Director and a Certified Financial Planner (CFP) / Independent Financial Adviser (IFA) at Smart Financial Planning