Wall Street is known for hidden and complex fee structures. At Financial Freedom, we’re committed to transparency, so having you understand our fees is important to us.
We are happy to have an open and honest conversation regarding fees. There will never be any surprises when it comes to fees and Financial Freedom. We start with the premise that our fees should “add value” to you and your life as none of us need just more expenses. We ensure that we are “adding value” by completing a formal performance review process on an annual basis.
All of our fees are quoted as a flat fee, based on your individual needs.
Here are the fees involved in working with us:
Step #1: No Obligation Consultation
Before anything, we’ll devote the time to help you determine if we’re right for you. Making sure that we have a “good fit” is incredibly important to a successful long-term relationship. There is no fee or commitment for the initial no obligation consultation.
Step #2: Development of Comprehensive Financial Plan
Cost: $3,000 – $4,500, depending upon complexity of your current situation.
Most client relationships start with the development of a comprehensive financial plan. This is an in-depth process requiring 20-30 hours of work at $150 per hour. We will quote the maximum number of hours after meeting with you prior to getting started. If we spend fewer hours, we bill you less. If we spend more hours than the maximum, we bill you the maximum because we don’t believe that anyone should provide a “blank check.”
This is truly a comprehensive plan covering cash flow analysis, retirement planning, risk management, investment management, tax management, estate planning, college funding, and stock options/executive compensation.
We start with the development of a comprehensive financial plan as we don’t believe it’s appropriate to assume that a client should immediately agree to an on-going wealth management relationship until we’ve completed the comprehensive financial plan and had an opportunity to demonstrate our skills and check for good personal chemistry in working together.
Step #3: Full-Service Wealth Management Retainer Relationship
Following the completion of the comprehensive financial plan, most transition to an on-going wealth management relationship. This will be quoted using an annual flat retainer, payable quarterly in arrears, with no annual or long-term commitment.
While no two clients are the same, below is the normal annual retainer amount for different levels of investable assets. While we do not charge on a percentage of assets under management, we have shown how the annual retainer equates to a percentage of assets under management as many people like to consider that as well.
| Investable Assets | Annual Retainer | Equivalent % | *Recent Fidelity RIA Benchmarking Study % of Assets |
|---|---|---|---|
| $1 million | $9,000 | 0.90% | 1.00% |
| $2 million | $14,000 | 0.70% | 0.90% |
| $3 million | $18,000 | 0.60% | 0.80% |
| $4 million | $22,000 | 0.55% | NA |
| $5 million | $25,000 | 0.50% | 0.75% |
| above $5 million | Let's discuss | ||
Please note: This is a guide based on average client needs for the combination of both financial planning and investment management services. Many times, our competitor’s fee schedules relate only to asset management. The above fee schedule will be fine-tuned in each client’s situation based on their specific needs.
Retainer is payable quarterly in arrears with no annual commitment. Either party can terminate the retainer agreement at the end of any calendar month.
*Benchmarking Study: The 2017 Fidelity RIA Benchmarking Study, Fidelity Investments, 408 firms participated in the benchmarking study.
Fidelity Investments is an independent company, unaffiliated with Financial Freedom, LLC. Fidelity Investments is a service provider to Financial Freedom, LLC. There is no form of legal partnership, agency affiliation, or similar relationship between your financial advisor and Fidelity Investments, nor is such a relationship created or implied by the information herein. Fidelity Investments has not been involved with the preparation of the content supplied by Financial Freedom, LLC and does not guarantee, or assume any responsibility for, its content. Fidelity Investments is a registered service mark of FMR LLC. Fidelity Clearing & Custody Solutions® provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 855033.1.0