Of course not! Don’t listen to what the banks tell you about needing a million dollars before hiring a financial planner. For many young families, now is the best time to engage with a financial planner while you're in the accumulation phase. The earlier you start the better. This is a time in life where it's not about how much money you make or have. Instead it's about making smart financial decisions with what you have today, establishing goals and priorities, so you can cross the bridge to success. We find that clients who possess the following traits achieve the greatest success:
- WILLING to set financial goals which you have a passion to achieve
- COMMITTED to taking control over your spending developing a budget/spending plan
- VALUE an advisor’s professional expertise and integrity as well as his or her ability to make complex subjects understandable
- PATIENCE – you want to build wealth not gamble on “quick financial fixes”
- DISCIPLINE – sticking to the plan through good markets and bad.
We believe transparency is crucial when hiring a Financial Advisor, We work for you, and it’s your right to know exactly what you’re paying and what you’re paying for. The first step in working with our firm and its Advisors will be to establish and define the Advisor-Client relationship, and determine a fair and reasonable fee structure that fits your needs and circumstances.
In the general marketplace of financial planners, comprehensive financial plans will cost $1,500-$5,000, and ongoing financial planning is around the same cost, but can be paid annually, quarterly, and even monthly now, as our firm offers. Some Advisors charge an hourly rate. The fee usually falls in the $200-$500 per hour range, depending on the experience and credentials of the Advisor as well as the amount of work involved. This may be a good option as a one-time project if you only need help with a one or two pressing topics or questions.
Advisory Fees are another form of fees that you will pay if you hire the Advisor to manage your investment portfolio. This fee averages 0.75% - 1.75%, but can fall outside those ranges in some instances. Keep in mind, there may be underlying fees in the investments you choose separate from the Advisory Fee. Underlying fees vary widely from 0.05% to over 5% annually, so be sure to ask your Advisor to explain these fees, and any additional fees, that may be involved. Our firm offers a FREE Portfolio Cost Analysis to examine the fees you are currently paying in your investment accounts, including 401ks, IRAS, and other similar plans.
Commissions are perhaps one of the oldest payment approaches. The commissions typically range from 1%-10% depending on the type of product. This Advisor sells financial products and earns an upfront commission for the sale. There is an inherent conflict of interest in this approach, and the topic has recently captured the attention of the Department of Labor (More HERE).
One option is not better than the other necessarily, but it's important that you ask your potential pool of Financial Advisors how they are compensated, and then do your homework to verify. We believe hiring a Registered Investment Advisor (RIA), like our firm, versus a Bank, Broker or Broker-Dealer, is key to securing a financial future for you, your business, and your family. An RIA acts as a Legal Fiduciary to your financial affairs, whereas a Bank or Broker follows a Suitability Standard. There is a big difference between the two. Again, the key is to ask the right questions and do your research. HERE is a good article by Forbes with a list of 10 great questions.
Consider our QUICK START SESSION to assess your current portfolio to determine what kind of fees you are paying. The amount of money you may save over time is far greater than the small cost of this program.
Whether you are looking for a one-time review or an ongoing partnership, my services will help you achieve your goals. We will discuss your questions and concerns, establish the best course of action, and create a road map for your financial life. We will review items such as your investments, benefits and 401(k) plan, income and expenses, taxes, insurance and more. SCHEDULE A MEETING for your FREE 30-minute consultation.
A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. Fiduciaries like our firm Bridge Capital Consulting, LLC are hired to act in your best interest and must set aside personal motives and conflicts of interest in favor of pursuing the best outcome for your unique situation. Common fiduciaries include attorneys, accountants, business advisors, fee-only financial advisors and registered investment advisors, real estate agents acting on your behalf, estate administrators, guardians, title companies, and trustees of a trust. There are very clear guidelines on who is considered a fiduciary in the financial world and who is not. The following people are not considered fiduciaries:
- Stock Brokers
- Insurance Agents
- Real Estate Agents acting on another party's behalf
The CFP® certification process, administered by CFP Board, identifies to the public that those individuals who have been authorized to use the CFP® certification marks in the U.S. have met rigorous professional standards and have agreed to adhere to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence when dealing with clients. Find out more HERE.
Bridge Capital Consulting, LLC is registered as a Registered Investment Advisor (RIA) with the California Secretary of State. You can access a copy of our Form ADV, Part II HERE which provides more detail about our firm and advisors.
Yes, if you dedicate your time and resources. However, if you are reading this, something tells me you may be looking for some help. We have established 3 service models as outlined on this site because we understand there is no “one size fits all” approach to financial planning. It depends on your unique personal situation and dedication to learning and following key issues. Most find they are better off seeking the information, expertise, experience, and discipline provided by a financial advisor.
Making quality financial decisions requires a high level of commitment to learning and research. Whether you are concerned about what to do with your 401(k), what benefits to sign up for at work, planning for retirement, paying for college expenses, or other financial goals, I believe many individuals can benefit from by leveraging the experience and expertise of professionals who are dedicated to serving these needs.