6 Tips for guidance of Flat Fee Financial Planning

  • Number (1): Unique flat fee financial planning is an innovative approach to managing your money. This financial planning service is a flat fee, one-time fee plan that organizes your existing funds and then pulls all of your funds together. The end result is a personalized financial plan designed to make money management more effective and easier. Robert L. Arroyo, a certified public accountant, will examine your current financial portfolio as necessary to make sure your plan continues to: (1} Be asset-agnostic. He or she will identify investment objectives and the best strategy to meet them;

  • Number (2):  Remain as simple as possible for your customers. This means that the flat fee structure should not force you to re-evaluate your portfolio or otherwise lose any of its perceived value due to excessive fees. In addition, your clients will also appreciate the flexibility of not having to set up a new account just to benefit from the services of the advisor. The majority of advisors offer a free initial meeting to discuss how their services will be beneficial to you and your family.

  • Number (3):  Expand your services with no additional fees. Some advisors charge a flat retainer, others require a percentage of assets under management, and still others charge an annual, escalating fee. You should not have to pay more than one-half to one-third of your assets or more in fees for the privilege of receiving a customized financial plan. Some people will be uncomfortable with the idea of paying a fee for virtually anything. But you and your family deserve to live your lives without worrying about where your next pay check is coming from.

  • Number (4):) Receive one-on-one consulting. Most financial advisors only work with their clients on a case-by-case basis. While this is fine if you are new to the investment market and do not yet have a comprehensive understanding of asset allocation strategies and risk/reward profiles, it can limit your options if you have a complex situation or several properties that need professional guidance. By allowing your advisor to meet with you in person at a mutually convenient time, you can ensure that he/she is able to devote the necessary time to addressing your concerns.

  • Number (5): Negotiate the best deal possible. Since financial advisor’s profit based on the assets they manage and the fees they charge, it stands to reason that they would want to maximize their profits. This is why most flat fee Financial Planning agreements contain some flexibility on the fee structure and annual fees that are negotiated. You can expect to receive the highest level of service when you are most comfortable with the advisor.

  • Number (6):  Manage your portfolio well. By dividing your assets into appropriate categories and allocation goals, you are ensuring that you will be able to meet your long-term financial goals. If one area suffers a setback, you will still be able to benefit from the other areas. Proper allocation will minimize the risks that come with an unstable portfolio. Proper asset management will also allow you to diversify your investments so that you are not depending on just one form of income to support ongoing financial planning needs.

Final Conclusion:

Invest for the big picture. For many people, the important issue in managing their portfolio is their overall health. The problem with using a flat fee is that you will only be paid for the assets you manage, not for the activities associated with those assets. If you want to make sure that your retirement funds are in strong hands, you will want to invest in the stocks and bonds that are likely to provide you with both ample income and low risk. For a long-term investor, this may mean buying real estate and other assets such as raw lands, residential properties, commercial real estate, and rental properties.

Manage your own financial advisors. If you find that you are having difficulty meeting your investment management fees, then it may be time for you to hire a financial advisor who will work with you on a flat fee basis. When hiring a financial advisor, you should make sure that they have experience and have a background in the business that you are working in. Also, look for someone who will help you build your portfolio so that you will be able to better manage your own money.

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