We are compensated for our services through a wealth management fee. Wealth management fees are based upon a small percentage of the assets we manage for you. Fees are paid quarterly in advance and 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.
The ongoing management fees are as follows:
|Assets Under Management||Annual Fee|
|Next $500,000 ($500,000.01 – $1,000,000)||1.00%|
|Next $1,000,000 ($1,000,000.01 – $2,000,000)||0.80%|
|Next $3,000,000 ($2,000,000.01 – $5,000,000)||0.60%|
|Next $5,000,000 ($5,000,000.01 – $10,000,000)||0.40%|
Frequently Asked Questions
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. Sometimes we can’t help and sometimes we can. It just depends on your personal situation. If you’d like to get started with an initial consultation click here.
Do you have an investment minimum for your wealth management service?
Yes. It’s $500,000.
Do you charge extra for a comprehensive financial plan?
No. We don’t want to nickle and dime our clients for services we think we should be doing anyway. Some advisors charge a fixed fee or an hourly fee for financial planning. We’ve found that clients avoid seeking the advice they need when they are charged for every question asked. That being said, we can charge hourly or a fixed fee if you only want financial planning and you don’t want investment management services.
Do you use low-cost investment options?
Yes. Keeping costs low is one of our core investment principles. That’s why we partner with firms like Dimensional Fund Advisors, Vanguard, and other institutional managers. These firms have a reputation of great returns and keeping expenses low for investors. As a result, there is a higher probability of better performance.
What is included in your comprehensive wealth management service?
When you hire us for wealth management, you’ll receive the following:
- Document and prioritize your goals
- Design a comprehensive financial plan. This includes but is not limited to: retirement income planning and projections, pension analysis, estate planning, insurance analysis, debt reduction, tax planning, college planning, investment planning and asset allocation analysis, cash flow and expense analysis, and charitable giving strategies.
- Manage your investments. This is includes analysis of your current investments, investment selection and strategy, portfolio rebalancing, tax management, and portfolio monitoring.
- Face-to-face consultations. We will meet with you regularly to keep you on track and track progress toward your goals
- Real-time access to your financial plan. You will gain access to our easy to use software that tracks your net worth, investments, and progress toward your goals. As a result, you will always know your financial position, regardless of what happens to markets.
- Portfolio performance reporting. You will receive clear and concise reporting that you can UNDERSTAND.
- Unlimited financial advice. Call us anytime. We’ll give advice whenever you need it on anything financial. Of course, we’ll reach out to you regularly to give you updates, too.
What does fee-only mean?
Fee only means we are only compensated by our clients for the advice and services we provide. Our fees are based upon a small percentage of the assets we manage for you. Additionally, unlike other financial advisors, we never receive commissions or 3rd party compensation. This reduces conflicts of interests and better aligns our interests with yours.
What are the potential advantages of a fee-only advisor?
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 advisor?
- 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:
You Want Financial Security.
We have a strategy to get you there.