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OT: What is a reasonable fee for Financial Planning? Posted by MI-Roger [Email]  (#882) [Profile/Gallery]
(more from MI-Roger) on Wed, 8 Feb 2006 05:18:24
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Our Financial Planner is recommending we "upgrade" our level of service to their Premium Plan which has a $1200 annual fee.
We currently have the lowest level of service which includes a minimum of one (typically two) meeting per year with an "advisor" to discuss current conditions and provide recommendations. In addition, they like to have their clients purchase a Detailed Personal Financial Analysis every two years or so. These plans are around 100 pages thick and look at pretty much everything; income, expenditures, investments, insurance, pensions, wills, trusts, retirement, long range life events, etc. The basic service is free, the Analysis cost varies based on assets, but would be $700 for us.
The Premium Plan provides a minimum of three meetings per year, but can be unlimited if needed/wanted, with both a Certified Financial Planner and a CPA present to balance income driven investment decisions against their tax ramifications. It also includes free tax preparation, one of the three annual meetings.
We have been a client of this company for 3-1/2 years. By following most of their advice our net worth has doubled and our estate value (more important to our kids naturally) has tripled in this time frame. These results are with lower risk investments too, somewhere less than middle of the road.
On the down side, they caused one "Oh, S***" by encouraging us to make a financial move that wasn't allowed by IRS guidelines, inpart because our level of service didn't include review by a CPA or other tax expert. They stepped up to the plate and covered all fees and taxes associated with correcting this past mis-step, and had the CPA prepare our taxes at no cost.
The company is conviently located, our current advisor has an entire alphabet of certifications behind his name (we are no longer assigned to a cold calling neophyte), and we are comfortable with both he and his assistant. The CPA seems excellent after only one meeting.
Is this level of fee reasonable?
I knew when we started with a planner that if things went well, we would get to the point where our portfolio would require more service and more fees than the entry level (hook a client) standard.
Thanks.
posted by 198.208.15...
_______________________________________ Saabs owned: 2008 9-5 Aero Sedan, sold at 227K miles 2006 9-3SC 2.0T - Wife's daily driver 2000 Viggen Convertible - Sold May, 2022 1964 Quantum IV Formula Car - Retirement project 2000 9-5lpt Sedan, sold at 318K miles
, Wed, 8 Feb 2006 05:18:24 <-- Viewing This Message
, Wed, 8 Feb 2006 08:51:55, Wed, 8 Feb 2006 08:53:17
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