How Much Does a AbbVie-Focused,
Fee-Only Financial Advisor Cost?
You wouldn't buy a car without knowing how much it costs. You wouldn't agree to have surgery without some idea of how much it would cost you beforehand. So why would you invest your money without knowing how much you're paying for financial advice?
The unfortunate truth is that many people don't ask this question - and they end up overpaying for financial advice.
A recent Harris Poll found that a staggering 60% of Americans don't know how much they pay their financial advisor. And almost half (47%) of investors mistakenly assume the costs of mutual funds and EFTs, are automatically included in their advisory charge, without asking!
That's why it's crucial to ask your financial advisor how much they charge - and to make sure you understand what you're paying for.
Like most people, you probably don't have time to read through a bunch of fine print just to find out how much a financial planner is going to cost. Plus, some sneak in hidden fees that can really add up over time. If you've had enough of being overcharged, and are fed up with ambiguous billing practices, it's time to switch to a fee-only planner.
Fee-only planners are transparent and upfront about our pricing schedules. You'll always know exactly what you're paying for - and there won't be any nasty surprises down the road. Just peace of mind knowing that your financial planner is working in your best interests.
The Fee-Only Difference
A lot of people think that all financial planners are the same, but that's not true. There are two main types of financial planners: fee-only and commission-based (and a third one, fee-based, which is still basically commission by stealth). We've explained the differences between these three types of planners before, but here's a quick overview:
Commission-based planners get paid by the companies that sell you products. When you buy a mutual fund, an annuity, or any other investment product, the commission-based planner gets a commission from the company. The more products you buy, the more money the planner makes. And the products they are incentivized to sell may not be the correct ones for you.
Fee-only planners don't get paid by companies. We get paid by our clients, which means we are free of conflicts of interest. We are dedicated to finding the best solutions for you. Our only motivation is to help you grow your wealth and reach your goals.
Fee-based planners are a bit of a hybrid; they get some of their income from commissions, and some from fees. But because they still get paid by the companies that sell you products, they have the same conflict of interest as commission-based planners.
Which would you prefer: a planner who's paid by third parties to sell you products, or one who's paid by you to help you achieve your financial goals? The answer is clear. Fee-only planners are the right choice for anyone looking for unbiased, objective financial advice.
- How Does a Fee-Only Financial Advisor Charge?
How do you pay your financial advisor if they're a fee-only planner? At first glance, schedules may appear higher than commission-based or fee-based planners. But remember, you're not paying for products, you're paying for advice. And it's important to remember that a good financial advisor provides a valuable service that can save you money.
The cost of a financial advisor varies depending on the type of services you need and the amount of money you have to invest.
There are a few different options for paying fee-only planners:
Flat project fee
Assets under management fees (AUM)
When it comes to fee-only financial planners, there are a few things you should keep in mind. First, those who charge by the project are generally more accessible to AbbVie executives. On the other hand, fee-only planners who charge AUM typically do more comprehensive work on an ongoing basis, but you'll need a large amount of investable assets to gain access to this service.
No matter what pricing structure your financial advisor uses, you're paying for quality advice and service. When you compare the price against the long-term costs of biased or poor financial planning, the value is clear. A competent, fee-only financial advisor is worth their weight in gold.
- What questions should I ask my financial advisor before signing up?
The important thing is to find an advisor who is a good fit for you. Fees are an important consideration, but they shouldn't be the only factor. Consider things like the advisor's experience, qualifications, and fiduciary status.
If you're considering working with a fee-only financial planner, there are a few questions you should ask them before signing up. Here are a few examples:
How are you compensated?
Do you have any conflicts of interest?
Are you a fiduciary?
What services do you offer?
How are your fees structured?
Do you have experience with my situation?
Can you work with me over the phone or online?
Is there an initial consultation fee?
What is the minimum investment I need to work with you?
What are your qualifications?
How long have you been practicing?
Do you have any reviews or testimonials?
Make sure to ask as many questions as you need to feel comfortable and confident with your financial advisor. The important thing is to ask lots of questions until you're comfortable with your advisor. You can research your potential advisor on regulator websites like FINRA BrokerCheck and Investor.gov to check their credentials, background, and reputation. Don't be afraid to shop around for the best fit. You're investing in your future, so you should take the time to find an advisor you can trust.
- How Does a Fee-Only Financial Advisor Charge?
Now that you know a little more about how fee-only financial advisors charge, let's look at how Retirement Matters set their fees. These fees are set based on the complexity of designing a financial plan using AbbVie's benefits package, and also the knowledge and skillset of Dave Grant®.
(You can also check what the acronyms for all the credentials and designations mean - and the financial specialties they denote - with our handy guide here).
Meet Your Advisor and his Fee Schedule
Dave Grant, from Retirement Matters, is a CFP®. Dave has assisted hundreds of clients in planning for their retirement. Dave is a strong advocate for the fee-only model of financial planning, and focuses on working with executives from AbbVie. With the fee-only model, Dave knows that his clients can rely on him to keep their best interests at the forefront of his advice.
Dave offers a one-time planning fee of $7,500, and offers an ongoing wealth management fee of 1% for the first $3M (0.5% thereafter), with a minimum fee of $15,000/yr.
- A Fee-Only Financial Advisor for You
There are many different options when it comes to finding a financial advisor. You could go with a big-name firm that offers cookie-cutter advice, or you could work with a smaller, independent advisor who will create a custom plan tailored to your specific needs. People think that if they go to a big bank or firm, they'll be getting a good deal. But all too often these planners are incentivized to sell you products that may not be in your best interest and may significantly harm your financial future.
That's why we recommend finding a Fee-Only financial advisor with a fiduciary duty to their clients. If you're an AbbVie executive, you'll want to find one who is familiar with the benefits plan at AbbVie and how to integrate this into your financial plan. An advisor like Dave Grant states this up front as a speciality so you know he has all the knowledge you're looking for. Before you sign up for a plan or make any investments, ask your potential advisor how they are compensated. If they're not upfront about it, that's a big red flag.
Our advisors all work on a fee-only basis, which means they are compensated only by the fees you pay them. This eliminates the possibility of conflicts of interest and allows these advisors to focus on what's best for you, not their own bottom line. And as you can see from the featured schedules above, we're transparent about prices.
Chicago Fee-Only is dedicated to helping AbbVie executives navigate their finances. Whether you're looking for a one-time planning session or need ongoing advice on how to invest your assets and manage your taxes, Dave Grant is available with no hidden charges. We believe that everybody should have access to quality financial advice, and our fee-only model ensures that our advisors will always have your best interests at heart. Contact us today to set up a consultation with Dave so he can get started on helping you attain your financial goals.