Why do you charge a flat fee?
Many firms charge a percentage of assets managed and throw in “financial planning” for free. There’s an inherent conflict when an advisor’s pay is tied to assets managed. An advisor is incentivized to maintain assets under management in order to protect their revenue stream. What if you want to buy rental property, purchase a second home, or custody your assets in multiple locations? We feel that a fee tied to net worth eliminates this worry. Another reason is to avoid a product driven sales mentality. Our financial planners do not have product sales goals to meet because we don’t have products to sell you.
How much am I paying currently?
If you’re with a Financial Planner, add up the fee that you pay your advisor and the underlying investment fees to see the total. This can include the quarterly/monthly financial planner fee, underlying expense ratios for mutual funds or ETFs, or transaction costs to name a few. For example, if you’re working with a firm, add up your AUM fee, year-to-date transaction costs, loads for funds, and annuity fees. We’d be happy to help you calculate this if you’re unsure where to look.
What is the difference between a broker and a Financial Planner?
Typically, brokers work on commission based on the products they sell (think mutual funds, stocks, and bonds as an example). In most cases, RIAs will charge a fee for a service (think a percentage of assets managed). It’s possible, though, that your representative is paid to sell a service for an RIA versus provide the service directly.
What does fiduciary mean?
There are many interpretations of what it means to act in a fiduciary capacity. We keep it simple. As professionals, we provide prudent advice that: is in your best interest, avoids misleading statements, and is priced reasonably.