Looking at the retainer-based planning “movement” from the clients’ perspectives, several advantages are apparent. First, most working individuals and business owners do not have significant investable assets outside of their 401k or business (respectively).
However, the value and choices wishing the 401k and around the business could benefit from an outside financial advisor. In addition, by not having revenue come from AUM, the client can get advise “where they are”.
My office is practically in Vanguard’s backyard and I will never be as big or cheap as them. So, with this model clients can keep their assets at Vanguard and we can provide advice on asset allocation and insurance; if they are accredited investors, we also provide access to alternative investments that they won’t get at a Vanguard.
One of our newest clients was a Director at a publicly-traded company. He had a $4M rollover and a small investment account with another advisor. This client didn’t feel like paying 1% on $4M (and I don’t blame him).
So, he hired us to provide retainer-based planning. We charged him $5K in the first year (a savings of $35K) and did more than simple asset allocation. He was exposed to alternative strategies that would complement the bulk of the $4M. We kept his assets at Fidelity and only moved the alternatives under our “umbrella”. The client saves significant fees, gets exposure to an asset class he was lacking, and gets additional services from our planning program. All for less than just the AUM fee he would have paid the “other guy”.
Win for all. Except for the guy who didn’t get the rollover business 🙂
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About Mr. Retainer
Fred Hubler (Mr. Retainer) is an accomplished financial advisor with more than 25 years of success in financial services and technology.
He founded Creative Capital Wealth Management Group and grew the firm to 11 states. The practice focuses on retainer-based wealth management. As Chief Wealth Strategist, Fred works with individuals and families to serve their financial needs and achieve their goals.
Fred is an inspiring speaker with a deep knowledge of market leadership, business development, goal execution, and wealth management.
He is an innovative leader with a keen eye for unique solutions and vast knowledge in alternative wealth creation strategies. He built a framework to allow third-party experts to collaborate with and assist his clients, a practice now spreading throughout the industry. He is also a certified Behavioral Financial AdvisorTM (BFATM).