PRICING

PRICING

$3,000
First Year Planning Fee
$200/hr
Appointments at your discretion

“Advice only” financial planning and investment advisory services are offered for an agreed upon fee. For BOTH initial financial and investment planning, the typical fee is $3,000. That fee is contingent on the following three conditions:

Four or fewer investment accounts
We find that the complexity does not depend on the size of the client’s balance sheet or investment portfolio, but rather on the number of accounts for us to analyze and advise upon. A typical household may have two company retirement accounts and two investment accounts, which fits squarely in this estimated fee.

Two month length of engagement to complete the financial planning process
It is our experience that the full financial planning process lasts for two months from recommendation to realistic implementation and we are available for any questions during that time. If the process exceeds two months, we will bill for additional time on an hourly fee of $200/hour.

Implementation of the financial plan by the client
We design financial plans that can executed by the client. But, if the client would prefer to have help with the execution, we are available for an hourly rate of $200. For example, investment or retirement accounts can easily be set up via the internet by the client; however, we can walk the client through this process in person if they’d prefer.

This fee is based on the time to create a financial plan and implement it. Most clients fit into this fee.
For clients with more or less complicated financial or investment situations we will negotiate the fee higher or lower, respectively.

How does our pricing stack up to standard industry pricing?

To get an apples to apples price comparison, we have to break down the pricing by client wealth, since the industry provides differing services and pricing by client.
Here are the major classifications of clients for the industry:

Negative or Low Net Worth 
People who owe more than they own. An example would be a new doctor with a high student loan burden and no significant savings or home equity.

Modest Net Worth
People who have a minimum of $500,000 outside of company retirement plans which is available to be invested by a 3rd party.

High Net Worth
People who have $1 million+ in money available outside of a company retirement plan which is available to be invested by a 3rd party.

 

Client with $5,000

Robo Advisor
  • Financial Planning: No
  • Investment Advice: Yes
  • Cost the First Year*: $15
  • Direction of Second Year Costs: Up
Registered Investment Advisor
  • Financial Planning: N/A**
  • Investment Advice: N/A**
  • Cost the First Year*: N/A**
  • Direction of Second Year Costs: N/A**
Aptus Financial
  • Financial Planning: Yes
  • Investment Advice: Yes
  • Cost the First Year*: $3,000
  • Direction of Second Year Costs: Down

*We assume the account balance increases over time with client additions and market appreciation.
**Without significant assets to manage most Registered Investment Advisors will not work with the client simply because they would have no way of making money.

Client with $500,000+

Robo Advisor
  • Financial Planning: No
  • Investment Advice: Yes
  • Cost the First Year*: $1,500
  • Direction of Second Year Costs: Up
Registered Investment Advisor
  • Financial Planning: N/A**
  • Investment Advice: Yes
  • Cost the First Year*: $5,000
  • Direction of Second Year Costs: Up
Aptus Financial
  • Financial Planning: Yes
  • Investment Advice: Yes
  • Cost the First Year*: $3,000
  • Direction of Second Year Costs: Down

*We assume the account balance increases over time with client additions and market appreciation.
***At this asset level and lower, Registered Investment Advisors usually are not willing to invest time in a financial planning process that we define as 10 or more hours to make a plan and assist in its implementation.

Client with $1,000,000+

Robo Advisor
  • Financial Planning: No
  • Investment Advice: Yes
  • Cost the First Year*: $3,000
  • Direction of Second Year Costs: Up
Registered Investment Advisor
  • Financial Planning:Yes
  • Investment Advice: Yes
  • Cost the First Year*: $10,000
  • Direction of Second Year Costs: Up
Aptus Financial
  • Financial Planning: Yes
  • Investment Advice: Yes
  • Cost the First Year*: $3,000
  • Direction of Second Year Costs: Down

*We assume the account balance increases over time with client additions and market appreciation.

 

Here is how we define robo advising and registered investment advisors:

Robo Advising
An online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners. (source: Investopedia) Robo advising is an excellent advancement in the industry for people to invest money confidently on their own. Robo advisors typically charge a fee of 0.3% on the amount the client invests with that platform and may have an investment minimum from $5,000 to $10,000. Since a robo advisor is a computer-based service, it is not able to provide financial planning. 

Registered Investment Advisor
An advisor who actively manages the funds of their clients for a fee and provides financial planning in addition to investment advice and implementation. The majority of the financial planning industry prices its services on an “Assets Under Management” calculation or AUM. The most common AUM is 1%. The most common minimum a client must have to invest is $200,000 in order to receive basic investing services. However, this would not be enough money to merit a full financial planning service (estimated time 10-12 hours in the first year).

We see our pricing as a game changer in the industry. We add human expertise only where exactly needed in the financial planning and help clients utilize technology for the rest. Read more about how we have achieved this pricing (see pricing blog).