After providing financial planning for over 20 years I have identified what I believe to be some basic situations or plan elements that elevate the complexity of a planning engagement. Consequently those items when present in a client situation necessitate a fee increase. These items are business ownership or independent contractor status, real estate beyond a single primary residence, stock awards, grants, &/or options, and net worth. Net worth includes all assets over which you have control or derive a benefit from including but not limited to real estate, retirement, business interests, trusts, use assets etc.+
Some examples based on the schedule below
- A business owner with no employees, one home, net worth of $2.9 million would have 3 complexity points. Her annual fee would be $5,100 collected on a monthly basis $425/month charged to her point earning credit card.
- A widow, lives in her primary home but loves to spend time with her children & grandchildren at the family lake house. Net worth $1,250,000. Her complexity points would be 2. Her annual fee would be $4,500, payable on a monthly basis: $375/month via e-mailed invoice which she pays online via a link in the e-mail.
- Two income professional couple with significant student debt, renting a townhouse, saving a minium amount and no other assets to speak of. No rental properties and not business owners (yet!) Negative net worth. Zero (0) complexity points annual fee $4,500 paid quarterly $1,275/quarter via travel points credit card.
- Business owner selling business to management team -- work out will take 3 years. Retirement is a foreign concept. Life after career sounds exciting; can't wait to get started. Net worth today $7,800,000. Owns (and will continue to own) land under business, two cash flow rentals and one vacation home. Complexity points 9. Annual fee $6,600, paid $1,650/quarter from business checking.
|Tax Analysis Employment Status||Both Spouses W-2 or Retired||W-2 and/or 1099 self employment||Business owner no employees||Business owner w/employees or multiple locations|
|Real estate||Single primary residence||Primary residence plus vacation property||Primary residence plus cash flow rental||Primary residence plus business property|
|Stock options or grants||None||Restricted or out of the money||Unrestricted or vested||3 + Grants|
|Net Worth||Up to $1,000,000||Up to $3,000,000||Up to 6,000,000||Over $6,000,000|
|0 - 2||Standard Family Steward||$375||$1,125||$4,500|
|3 - 6||Complex Family Steward||$425||$1,275||$5,100|
|7 - 10||Advanced Family Steward||$550||$1,650||$6,600|
|11 +||Accomplished Family Steward||$675||$2,025||$8,100|
At the inception of our relationship you will pay a start-up fee of $1,000. Ongoing fees are due and payable monthly, in arrears, from a checking, savings or credit card account. Monthly billing begins 1 month after contract execution. If you would prefer to pay quarterly that is acceptable. Annual billing payment is not permitted due to regulatory restrictions.
You are paying for our expertise, advice and service. I sincerely hope we will continue this relationship for as long as you find the services are valuable to you and your family.
We ask that you commit to one year of working with us. We believe that one cannot make an accurate evaluation until you have experienced the entire slate of services we provide over the course of a full year. You are not bound to stay in the contract for the entire year, in fact the contract specifies you (or I) can terminate the contract with no less than 15 day notice. I just hope you will stay the year to experience a year’s worth of services.
Monthly fees do not include investment management which is treated separately. Ask about investment management during your "Get Acquainted' visit.
Next step is to schedule your "Get Acquainted" visit: Schedule "Get Acquainted" visit