When we book an airline ticket we want to get from where we are to our destination as quickly and easily as possible with the least amount of cost and hassle.   We understand that some airlines include things like checked bags whereas some do not and that there are different routes we can take based on our schedule, budget and destination.   Ultimately we expect all airlines to get us to the destination safely and that they meet basic mandated guidelines.  For example the airline is expected to inspect and maintain the aircraft based on FAA guidelines.

The pilot will check the plane for mechanical issues, before departing but we understand he did not build the plane and that things may come up that are unforeseen.   There may be weather issues that cause delays or a change in routing.   We understand that delays that are related to the weather, or due to a mechanical issue,  are beyond the control of the pilot or airline.  What we expect is that they safely get us to our destination as efficiently as possible given the challenges and events that come up.

The same things are true with your financial planning. You are hiring your advisor and his or her firm to get you from where you are to a financial destination as quickly and easily as possible with the least amount of cost and hassle. The route you take will be based your needs, schedule and ultimate destination (goals).   It is very important to understand that the advisor did not build the investments being used to get you to where you are going,  just as the pilot did not build the plane.  While the advisor has done their due diligence (pre-flight inspection) unforeseen events may occur.   For example a fund manager may leave or an investment strategy may change.  There may be a natural disaster or terrorist event that impacts markets in general and therefore portfolios.   This is not the fault of the advisor (pilot).  Their job is to identify the problem, notify you and then act accordingly to get you to your ultimate destination as safely and close to schedule as possible.    We plan for what is expected and also for contingencies when emergencies occur as part of our proactive process.    When something does arise our role is to deal with it and get you to your destination as safely as possible.  This is also where an experienced flight crew or financial advisory team can make a difference.

When selecting the airline, or even private charter, there are dozens of choices; just as there are with financial firms and advisors.  Some discount airlines provide bare-bones service but often have other fees such as for carry-on bags, selecting a seat or checked bags that are included with a full service airline.   Understanding what the fees are and what you can expect from the airline is key.  The same is true of your financial advisor.  Understating what the cost to work with them is, and what you can expect in return is important.   Moreover, if you book a first class ticket or private charter you will receive perks that you will not get with a discount airline.

We generally utilize a flat fee based approach for clients based on assets managed.  We believe this provides the most transparency about what you are paying and also the most flexibility to make adjustments when unforeseen issues arise.   This approach allows you to make changes or get cash without penalty or transaction expense.

We will design a custom route based upon your specific goals, needs, risk tolerance and overall vision. We have developed and refined a process to work with you in developing, implementing and monitoring a plan this is based on your vision.  We then utilize a proactive approach to managing income, taxes and other factors that are important to you.  Please feel free to contact us, without cost or obligation, to discuss any questions you may have.  Safe travels!

 

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and investors can incur a profit or loss regardless of strategy selected. You should discuss any tax or legal matters with the appropriate professional.  In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm’s Form ADV Part II as well as the client agreement.