Our clients are the only ones who pay us. We do not accept commissions or other compensation from brokerage firms, banks, investment managers or mutual fund companies. We do not accept gifts or prizes for doing business with a brokerage firm, bank, investment manager or mutual find company.
- Our fees are determined in three available models:
- First by applying a fee schedule to the assets we manage for clients. The Assets Under Management Model. The fee is designed as a percentage of the account balance we manage for a client and covers all aspects of our Comprehensive Private Wealth Management service. 1.5% on the first $500,000 1.0% on 501,000 to 2,000,000 0.90% on the next $2,000,001 to $5,000,00
- Second by negotiating a flat fee for a specific service or annual retainer. The Retainer Model. Clients opting for this model often have specific needs for financial planning services but may not have accumulated or gained control of their investment assets at the time of engaging our services. This may be due to pending divorce negotiations, a planned retirement when the majority of client assets are currently held in a 401K and/or equity compensation or simply being early in a career with a healthy income but limited invest-able assets.
- Third based on hourly billing rates for specific tasks. The Hourly Billing Model. Clients choosing this model typically have a specific strategic planning need such as developing a post-divorce financial plan, building a diversification plan to protect concentrated equity positions derived from stock options and similar equity compensation or developing a financial agreement with a future spouse.
- Hourly billing rates range from $175 to $350 per hour.
- Most clients are covered by the Assets Under Management Model and pay fees based upon our fee schedule applied to their investment portfolio. This is generally the most effective model for clients opting for our Comprehensive Private Wealth Management service platform.
- Clients navigating a transition through liquidity events such as divorce or strategic retirement planning may not yet have access to assets and may choose the Retainer or Hourly Billing model until the transition event is complete and they have full control of their financial assets.
- Clients navigating the financial intricacies of a young career, new family or starting their own business often opt for the retainer model so they may pay fees directly from cash flow while they concentrate on career, starting a family, buying their first home and savings accumulation.
- Services during a pending divorce are provided through our sister company, Wellspring Divorce Advisors, www.wellspringdivorce.com
- Fees are billed quarterly, in advance of the quarter in the Assets Under Management model and Retainer Model. Fees are billed as incurred in the Hourly Billing Model.
- One of the major benefits of selecting a fee-based advisor is freedom from the inherent conflict of interest that can arise when a significant portion of the advisor’s income comes from selling financial products. The concern you should have as a potential client is whether or not the advisor is recommending a certain financial product because it enhances his/her bottom line and if the products recommended are truly in your best interest. In some cases, some registered reps and others who earn all or part of their compensation via commission may be required to favor products offered by their employer. These products may or may not be the best vehicles for your situation.
- Another benefit of using fee-based financial advisors is the opportunity for them to offer an objective second opinion of your situation. The second opinion can range from addressing a specific financial question to a review of your investment portfolio to a full-blown financial plan.