Providing financial advice and crafting comprehensive financial plans is similar to building a house. A home builder must know the specifications for the home to be built—one level vs. two level, no basement vs. full basement, builder grade appliances and fixtures vs. high end appliances and fixtures, etc.—to provide an accurate cost estimate. Since every advisory client is unique in their wants, needs, aspirations, and life stages, an advisor needs to understand a client’s circumstances before committing to an appropriate fee structure for the desired advisory services.
With this said, though, prospective clients deserve honesty and transparency. Below is a list of services and fees as well as factors that may affect the final cost. Regulations, laws, and ethics require that advisors gather adequate and relevant information before providing financial advice. For most engagements, approximately 1-4 hours (and possibly more for complicated financial circumstances) will be devoted initially (for a new client) to the gathering and review of such information.
Subscription services (monthly)
$75-$100 per hour per month for the number of desired hours, depending on the complexity of your financial circumstances, for your advisor to address questions, concerns, perform analyses and calculations, and discuss financial issues of importance to you. Advisory subscriptions are subject to a prepayment of 3 months of fees which remain in your account as long as the engagement remains active.
Comprehensive Financial Plan
$1,000 to $4,000, which depends entirely on the complexity of your current financial circumstances and complexity of your financial goals. A cost proposal is prepared and a deposit is required prior to the commencement of work.
Well-defined Projects
For projects that are easily described and are finite in nature, meaning there is a clear beginning and end to the required effort, a fee is proposed up front for your review and consideration. There is no cost associated with the proposal. A deposit is required prior to the commencement of work.
Open-ended Projects
Needs that are not easily defined, such as your desiring to “touch base” every few months to discuss investment opportunities or preparations for an upcoming retirement, are billed at an hourly rate of $150. This type of engagement often changes scope and direction regularly based on issues that are pertinent to you at a given point in time. A prepayment of anticipated fees may be required to keep in your account at all times as long as the engagement remains active.
Discounts
At the firm’s sole discretion, fees may be discounted for veterans of the military, teachers of grades k-12 in a public school system, and individuals with past affiliations with Present Value Financial Services® LLC or its employees. Present Value Financial Services® LLC also retains the right to waive or discount fees based on a client’s individual, unique circumstances. Adequate documentation of membership in one or more of the aforementioned groups is required to be considered for a discount.
(See Item 5 in the Present Value Financial Services® LLC’s Form ADV Part 2 for a more detailed description of compensation models.)
