Financial planning is the core service Firma Financial Planning offers. A typical relationship between ourselves and our clients is when we manage client assets in our advisory platform and the fee is stated as a small percent of assets under management. Financial Planning and all other services we offer are included in this relationship at no additional cost, however, with the way people save in today’s day and age, using 401ks and other qualified plans where assets must stay with the provider their employer chooses, it’s not always possible to enter into that arrangement. For some people, a flat fee Financial Plan may make the most sense.
Flat fee Financial Planning agreements include:
At Firma Financial Planning, we pride ourselves on being independent financial advisors with a fiduciary responsibility to our clients. We go through the planning process of understanding you, your financials, and your goals while identifying tools in the financial tool box that best serve your needs… and there are many tools in the financial tool box, including many for wealth management.
As planners, we value liquidity, risk, and cost efficiency. The vast majority of our clients work with us in an advisory capacity, utilizing our wealth management services.
Here is what that relationship looks like. If a client opens an advisory account, they are giving us discretionary authority to make trades on there behalf. After the financial planning process is complete and an investment strategy is determined, the client is giving us authority to make trades within that strategy. We do not generate commissions based on those trades, So you do not have to question if we are making those trades for your best interest or for ours. This is a fee-only wrap account.
A fee-only account is where the management fee is stated as a small percentage of the assets managed. Generally around 1.25% depending on the amount of assets under management. We find this model to be most beneficial as it aligns both of our interests. We each want the account grow and you need to have confidence that we are working in your best interest. This is best achieved in a non-commission based platform. We are partners in this endeavor. We are glad to discuss fees and the cost of a portfolio. Typically, our portfolios tend to be more cost efficient than other advisory firms. We are actively manage your account using low cost Exchange Traded Funds as opposed to buy-and-hold load funds or mutual funds.
We are happy to help answer any questions or schedule a call to discuss more in depth about your investment and planning.
We also offer group pricing. Since the fee rate is based on Assets Under Management, we will take all managed accounts into consideration when calculating the rate. as well as take every account associated with your group. As an example, if you are a client and your brother is in the market for a financial advisor, he can open an account with our firm and join your group. When his assets are calculated with yours and the total moves you passed a break point, we will give you BOTH the lower annual rate.
We understand that today’s assets are held in a current 401k, 403b, pension plan, or other qualified retirement account. Typically , most advisors will not work with someone unless they have the opportunity to roll over those assets. We work a bit differently. We understand that the planning process needs to begin before that. In fact, we pride ourselves on our willingness to work with you before that time has come.
We want to invest in the long term relationship with you and your plan, even before we open an account for you. We value the relationships with our clients. It is for this reason that we offer hourly consulting and qualified plan allocation. For many people, their largest cash asset is their 401k/403b. Shouldn’t that be managed in accordance with your overall financial outlook? In a way that matches your goals?
To the right is what is included with our hourly consulting agreement. If you have any questions, please reach out to us!
We understand that not everyone may be in the position to have us manage assets for them. Maybe you’re just getting started or you’ve been saving but your assets are locked up in a a 401k-type account. Should that preclude you from working with a professional to help you make financial decisions? At Firma Financial Planning, we don’t think so. Our goal is to help as many people as possible in any way that we can.
It is for that reason that offer a variety of different cost structures including hourly consulting. We want to provide solutions for as many different scenarios that we can. Hourly consulting is designed for special projects and circumstances. Maybe you’re a small business owner that wants assistance reviewing at your books or running some projections. We can help be your CFO.
The family could use a CFO at times as well. Some families need to develop a plan to tackle some debt. Others want to build some college plans or prepare for a second home or large expense/investment. We are happy to help.
We need at least one meeting to determine the scope and goals of the relationship. We will be happy to meet at no cost so we can understand what your project entails, and we can get you an accurate proposal.
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