Key Questions to Ask for a Secure Retirement
Retire with confidence by answering these crucial questions
As a fee-only wealth management firm we put your interests first.
Traditional wealth management firms and financial advisors may depend on commission income, resuling in greater conflicts of interest. Many wealth management firms charge commissions on products they sell in addition to management fees. Some, like annuity commissions, can be upwards of 8%! This creates huge conflicts of interests. Often, better and more affordable products exist, but commissioned financial professionals are incentivized to sell products providing higher returns for them. In the end, that conflict can cost you, both in out-of-pocket expenses and in the quality of advice you receive.
At Fonville Wealth Management we believe there is a significant conflict of interest if an advisor stands to gain more financially by recommending one product over another. As a fee-only financial advisor, we’re different because we receive the same compensation, regardless of the product we recommend. Equally as important, we provide comprehensive advice for far less than the average financial advisor. We don’t just manage your money, we manage your financial life.
If you seek a relationship with a competent financial planner whose compensation is not dependent on the product they sell, but rather on the advice they give, then we may be the right fee-only financial advisor in Richmond, Va for you.
Wealth Management Fees:
|Assets Under Management||
Planning + Investing + Reviews
|On the First $1,000,000||1.00%||1.02%|
|On the Next $1,000,000||0.50%||0.80%|
|On the Next $3 million||0.25%||0.80%|
*Advisory HQ, Average Financial Advisor Fees and Costs 2017
Frequently Asked Questions
How do you charge your fees?
We are compensated for our services through an investment advisory fee. Investment advisory fees are based upon a small percentage of the assets we manage for you. Fees are paid automatically, and withdrawn quarterly in advance at the beginning of each billing period. Fees are assessed based upon the account asset value(s) on the last business day of the previous billing period. When an account is established, the management fee is charged for the remainder of the current billing period and is based upon the initial contributions. Some transaction fees are passed on to our clients and could be higher in the first year as our strategy is implemented.
What do I get for the fees that I pay?
- First and Second Meeting. The first and second meetings are always free. The first meeting includes a complete discovery of your financial goals and objectives. The second meeting includes a clear and straightforward analysis of your current situation with recommendations. Should you decide to implement with us, clients may choose one of the two ongoing advisory options below.
- Wealth Management = Investment Management + Financial Planning + Reviews. As your Personal CFO, we provide a turn key wealth management experience which includes custom tailored investment management based on Nobel Prize winning economic research and a comprehensive financial plan, updated semi-annually. Your financial plan may include but is not limited to retirement planning, retirement income planning, estate planning, planning for dreams and major purchases, insurance analysis, tax planning, and college education planning. We also provide advice on your company benefits such as 401k investment selection, dependent care accounts, and health savings accounts. Wealth Management also includes access to our team of expert resources including a Certified Financial Planner, estate planning attorney, insurance expert, etc…We also meet with you twice a year to keep you on track.
How can I get started?
Hiring a financial advisor is kind of like dating. After all, we hope to be your advisor for life. That’s why our first two meetings are at no-cost, and no-obligation. This allows us the chance to learn more about each other and to decide if there is a good fit. If you’d like to get started with an initial consultation click here.
Do you have an investment minimum?
No. However, we do have a minimum quarterly fee of $2,500 per quarter if we manage less than $1 million for you.
Are you a fee-only financial planner and investment advisor?
Yes. Fee-only means we are compensated directly by our clients for the advice and services we provide. We never receive commissions or 3rd party compensation. This reduces conflicts of interests and better aligns your interests with ours.
What are the potential advantages of a fee-only financial planner?
While every compensation model has some drawbacks, we believe there are several benefits to hiring a fee-only investment advisor including:
- Reduce conflicts of interest
- Know exactly what you are paying without wondering “How much is my financial advisor REALLY making?“
- Reduce your total overall costs. Since we are paid the same, regardless of our recommendations, you can be confident that we are working hard to find the lowest cost investment options. Keeping your costs low may improve your overall returns.
- Reduce (or eliminate) insurance premiums. While many of us don’t like paying for insurance, sometimes it’s part of a smart financial plan. In these cases, we leverage our partnerships with specialized insurance consultants who provide our clients with reduced premium insurance products.
- We have a continual vested interest in your success. For example, we are paid less when your investment portfolio goes down and more when your investment portfolio goes up. As a result we continually strive to get you the returns you need without taking on unnecessary risk.
What are the potential disadvantages of a fee-only financial planner?
- Our compensation structure is much more transparent. As a result, you see the fee. This is different than other financial advisors who may receive hidden commissions from the products they sell.
- Some financial advisors who charge fees based on assets under management may not recommend that you pay off debt. Why? Because if you pay off debt, they no longer get to manage the money! While this is a valid concern, we always put the client’s interests first and love recommending that clients pay off debt (when it makes sense to do so).
Is my money safe with you and where do you custody my money?
The safety and security of your money is our number one prioroty. That’s why we partner with third-party independent custodians to ensure the safekeeping of your investments. You may choose to open accounts at Charles Schwab, Fidelity, or TD Ameritrade. We prefer Charles Schwab due to their enhanced security measures but you are welcome to choose any of the three.
Do you charge commissions?
No. We never charge commissions.
Are you a fiduciary?
Yes. As a fiduciary, we are required by law to always put our client’s interests ahead of our own. This is different than stock brokers who are regulated under a lesser standard of care. See: Should You Trust Your Broker? No, and Here’s Why
What is your investment philosophy or approach?
We believe that the important thing about an investment philosophy, is that you have one. Click here to download our investment process.
Where can I learn more?
We always recommend that you do your research before hiring a financial advisor. Here is a list of great resources to help you get started:
We have a strategy to get you there.