Great Service Starts With Understanding
We are a fee based, full disclosure, and financial services firm. What this means is that we charge a fee for our time for our fiduciary financial planning. In normal people terms, we are legally required to do what is in your best interest and disclose conflicts of interest. We also get paid when our clients choose to implement insurance or investment products or services through us. We abide by and comply with the CERTIFIED FINANCIAL PLANNER™ Board of Standards for planning, education, training, ethics and conduct.
ONGOING FINANCAL PLANNING FEE STRUCTURE
In a nutshell, our financial planning process firm minimum fee is $1,500 and increases based on the complexity of your situation. A fee estimate will be provided to you during your complimentary initial consultation meeting. Click here to start the process.
Most often our clients want us to help implement and monitor many of the insurance and investment products they utilize in their plans.
transparent compensation
Insurance Services Compensation:
Compensation from insurance products is set by the carriers and brokerage services we utilize. This typically is structured in some form of commission schedule and the products and rates vary dramatically between companies and products, but the rate and formulas are pretty universal across the insurance industry. For more information, ask your advisor.
Investment Products Compensation:
Today, compensation for investment products typically fall under commission based or fee-based asset management. Our firm primarily provides fee-based asset management services, but we do service some commission-based accounts and some commission-based retirement plans.
Commission based compensation was most common for many years. You would pay a commission on the purchase and or sale of an investment product like a stock or mutual fund and then there are also internal fees baked into the investment product expense ratios that get kicked back to the registered representative every month or quarter. The standard for this model was that the purchase of the investment passed suitability standards of ‘not hurting you’. Now the rules have changed, and the commission-based model falls under the same best interest standards as fee-based recommendations.
Fee based compensation is fee only with no commissions. These fees are typically charged monthly or quarterly against your accounts average daily balance over a rolling time period. For example, a 1% annual advisory fee would be assessed at .25% of your average balance per quarter. If you have a $100,000 investment you would be charged $250 per quarter for the advisory fee. Additional expense ratios and trading costs would be in addition to the ‘advisory fee’ leading to a larger ongoing all-in expense ratio.
Depending on the strategies we build and your investment goals, account sizes, time horizons and comfort level with risk and volatility, different investments, companies and products will make more sense than others. When you hire us to manage your assets, our base firm fee grid is as follows for managed assets:
1.00% on assets from $0 - $1m
0.75% on assets from $1m – $3m
0.60% on assets from $3m - $5m
0.50% on assets from $5m - $10m
Custom fee for assets $10M+
Please note we do not charge a fee on assets not in our custody.
Our
Process
financial Planning topics
embarking on the journey
toward your goals
Financial Position
Recently moved or considering a relocation
Considering the sale of a major asset like your home, business or other real estate
Cash liability management
Changing jobs
Getting married or divorced
Adding to family though birth or adoption
Loss of a loved one
Receiving a gift or inheritance
Risk Management
Reviewing Health Savings Account contributions
Spending any remaining balances in Flexible Spending Accounts
Reviewing existing life and disability income insurance policies and coverage amounts
Reviewing assisted living needs for a parent or other family member
Reviewing any long-term care needs
Wealth Accumulations
Confirming investment goals and strategy
Reviewing asset allocation
Revisiting income and savings needs
Contributing to education accounts
Establishing savings plan for major purchase or expense goal
Tax Management*
Income tax strategies
Alternative minimum tax strategies
Capital gain/loss strategies
Retirement Planning
Retirement Planning
Social Security
Distribution planning
Funding analysis
Non-qualified plans
Analyzing tax benefits of a Roth IRA conversion
Maximizing 401(k) contributions including catch-up contributions
Maximizing IRA contributions including catch-up contributions
Establishing a retirement plan, if a business owner
Reviewing overall retirement income strategy
Estate Planning*
Using a Trust
Reviewing beneficiary designations
Planning charitable giving
Reviewing impact of any new tax laws
Reviewing estate documents (wills, trusts)
Planning for the succession of a busines
Analyzing estate tax implications
*Neither Rice Financial Group nor its representatives are authorized to provide tax or legal advice. Consult your tax or legal advisor regarding your specific situation.