Straight talk on Costs
We are a fee-only advisor.
Why should that be important to you?
Here’s an explanation of the different ways advisors charge for their services.
‘Fee-only’ refers to the method of compensation in which planners are paid fees directly by their client, and do not accept any other commissions or compensation from any other source. Read more here.
The recommendations you receive are not influenced by incentives paid to the advisor to steer you toward particular products or companies. With commissions and kickbacks out of the equation, the full, unbiased spectrum of financial solutions becomes available to you.
In the commission-based framework (which is often misleadingly called “free advice”) you get "advice" that a product provider pays for you to hear.
From an investor’s perspective, trapped in this web, any "advice" you received would seem free of charge. Your "advisor" might not even be fully aware how the conflict of interest affects them. But behind the scenes, your “advisor” is earning their keep from commissions paid by third-party providers who stood to benefit from your transactions, including an army of different broker/dealers, bankers, insurance companies, and fund managers.
Financial representatives working for commissions have strong financial incentives to recommend high cost products, and to present them in the most favorable light. Read more here.
Often confused with "Fee-Only" advice, a fee-based relationship can charge fees, while also receiving commissions from sponsors of investment or insurance products.
In this scenario, you might pay a fee, but you might not be receiving objective advice.
Consider if the representative is incentivized to recommend “solutions” that maximize the return to themselves or the representative's company. Read more here.
The value of good advice
Do you have a dedicated team that knows you, and that you feel cares about your finances nearly as much as you do? If so, do you know the total cost you're paying? Our clients know their costs, with no commissions, no kickbacks, no surprises.
We believe our advisory cost will be a small fraction of the value we can provide:
- By helping you make better decisions, make them earlier, and by avoiding costly errors.
- By seeking a long-term investment return that exceeds other comparable options.
- By seeking a lower lifetime tax burden, and the benefits of tax-efficient wealth transfer and charitable giving.
- By helping to provide peace of mind while saving you time and energy.
The value of good advice is far more than the cost when estimated by studies like Vanguard’s "Advisor’s Alpha" and Russell’s "Value of an Advisor." Researchers at Dartmouth College found that those who have taken the time to do some planning, even a little bit, ended up with two-to three-times more financial wealth.
Our cost should be a small fraction of the value we can provide.
Advisory Costs
Our advisory costs include all the services listed on the Financial Planning page and others that may be unique to your situation. They are the only payment we receive for the work we do.
Although we offer hourly advice, and advice on specific projects, most clients retain us for ongoing advice. These clients are charged a fixed percentage of the portfolio, usually around 1% per year (usually from 0.40% to 1.75% per year). Done right, our services should pay for themselves many times over.
Our costs are negotiable, depending upon the level and scope of the service required and the professional services requested.
Prior to engaging us, we provide full disclosure of your cost.
We generally require an annual minimum advisory fee of $25,000.
For more information about our advisory costs:
Read our White Paper: Advisory Costs.
YOU ARE
A Doctor, Dentist
or Other Medical Professional
Your needs are unique. Due to lengthy and expensive educational requirements you face a late start accumulating wealth. Whether you’re near retirement or you’re just starting your career, you value your limited free time and realize the importance of making evidence-based financial decisions.
Learn more
An Established Family or Individual
Your financial concerns range from wealth accumulation and distribution, to estate and retirement planning. Your focus may be on the peace of mind you would derive from knowing you and your loved ones can maintain your quality of life, and leave a legacy for your heirs or to designated charities, in a tax efficient manner.
Learn more
An Exceptional Young Professional
You need a “life plan” that’s comprehensive, tracks your progress, and deals with your unique concerns. You may need to balance paying off debt versus saving, all while planning for retirement. You may have a growing family. If so, your primary concern is providing for them — especially in the event of a premature death.
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MANAGING A RETIREMENT PLAN,
TRUST OR FOUNDATION
We assist retirement plans, trust and endowments in structuring portfolios for the long term. We understand the delicate balance between risk and return and are cognizant of the need to minimize costs. In this litigious environment, you are concerned with liability and want to be sure you are meeting your fiduciary obligations.
Learn moreAlternatives
Not ready for Open Window As your fiduciary financial planner and investment advisor?
Consider these non-broker, commission-free alternatives (unaffiliated with Open Window).
Note that the costs listed are general illustrations and may not be current.
Do It Yourself
Fees: ~0.04% TO 0.16%
Value: ____?
- Select a single, low cost option with a low minimum balance
- No guidance beyond initial investment selection (or for non-Vanguard accounts)
- Good for those starting out or when your situation is simple
Digital Advice
Fees: ~0.25% to 0.65%
VALUE: ____?
- Help choosing investments at a low cost and with a low minimum balance
- Limited guidance with other accounts and limited access to a human when you have questions on investing, and sometimes a bit more
- Good for those starting out or when your situation is simple
Hybrid Advice
Fees: ~0.35% to 0.89%
VALUE: ____?
- Provide technology-assisted, mass-produced investment guidance
- Can offer limited-fiduciary advice on topics beyond investing, sometimes from a CFP® professional, sometimes with very limited tax planning, sometimes from who knows you and cares about you
- Good when you have some wealth built or want more interaction
Betterment Premium
Human Financial Planner
Cost: ~1%
VALUE: ____?
- Delegation within a face-to-face, personal relationship, including professional portfolio management and personalized advice beyond investing, and the potential for robust tax planning
- Ideally, act as unlimited full-time fiduciaries, are CFP® professionals, and represent CEFEX-certified firms
- Good for those with more-complex situations and/or established wealth
(Reno, Nevada) XY Planning Network
(All 50 US States & International)