25 Ways We Help Clients Build Better Relationships with Their Money
6.) We don’t sell investment or insurance products, allowing our clients to trust and share more with us.
A lot of financial planning firms like
to advertise that they are “Fee Only”, meaning they are only paid with money
that comes from their clients. This simply means that the financial planning
firm is not receiving payment from non-clients. 3rd party or
non-client payments are usually seen in the form of commissions or kickbacks
from insurers in exchange for selling clients into their products.
Needless to say, Arrivity is a
“Fee Only” firm as we never receive any kind of commission or kickback
in exchange for or related to our investment recommendations. But being “Fee
Only” is a low-bar in the 2025 personal financial planning market – you can and
should do better than “Fee Only.”
Arrivity is something even better than
“Fee Only” – we are “Advice Only” or “Hourly Fee Only,” meaning we only
receive compensation for the time we spend working on your financial plan and
discussing it with you. Most other financial planning firms charge an “assets
under management” or AUM fee, which means they charge a certain percentage of
your assets as their form of compensation.
If a firm charges a 1% AUM fee and you
have $1 million under their management, their fee will be 1% of $1,000,000,
which is $10,000 each year (often charged in quarterly installments). If your
investment portfolio is $5 million, their fee will be $50,000 each year. If
your investment portfolio is $10 million, their fee will be $100,000 per
year…you get the idea. Note that these AUM fees are charged even when your
portfolio goes down in value with a market downturn, correction, or recession.
By only charging hourly, Arrivity
ensures we provide the same quality, unbiased advice to each and every one of
our clients because: 1.) We are good, friendly people; 2.) We are ‘Fee Only’,
meaning we do not receive compensation in the form of kickbacks or commissions;
and 3.) We are getting paid the same hourly rate regardless of whether you have
an investment portfolio of $200,000 or $20 million. We are paid for our
expertise, experience, advice, plans and time – not for simply having custody
or control over your investments.
Please contact us at: Contact Arrivity or 206.217.2583 or info@arrivity.com if we can assist you or someone you know with financial planning.
Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.