Here's What to Expect
DFP’s integrated, holistic financial planning process begins with an initial financial planning engagement, usually conducted over the course of two to three months and four or five meetings. Typical fees for the initial financial planning engagement are generally between $5,000 and $7,000. At the end of the initial financial planning engagement, DFP will help the client decide whether it is best to self-implement their plan or continue working with DFP on a long-term ongoing basis.
If DFP feels self-implementation is best, six months of as-needed follow-up will be provided at the rate of $300 per hour. If the client continues on an ongoing basis, DFP will help the client implement the recommendations made during the initial planning engagement. DFP will work closely with our client to keep them updated in the months and years ahead. DFP will provide ongoing management on the client’s investments. Fees for the ongoing service depend on the size of the investment base of the client with the minimum annual fee being $5,000 per year. There are no minimum asset or income requirements to work with DFP.
DFP’s services are most appropriate for those who desire a long-term pro-active relationship with a financial planner that includes investment management. Services are broken down into an initial planning component followed by ongoing services for two reasons. First, DFP believes financial planning should come before investment planning. Secondly, our process allows DFP and the client to decide if there is a good fit before committing to a long-term relationship. Apart from the six months following the completion of the initial plan, DFP does not offer hourly, as-needed follow-up to clients who self-implement their financial plan.
Step 1: Initial Inquiry
You review the introductory materials on our web site, then contact us. Over the telephone, we’ll provide a brief description of our services, philosophies, methodology, and fee structure. If our services appear to fit your needs, we’ll schedule an in-person “Get Acquainted Meeting.”
Here's a guide to the 19 questions you should ask every financial planner.
Step 2: Get Acquainted Meeting
The Get Acquainted Meeting is an opportunity for us to exchange information about your needs and objectives and further discuss if our services are right for you. We will also provide an estimated fee quote. If you decide to engage our services, we will give you a list of additional information needed to begin formulating your financial plan and a $500 deposit will be due.
Step 3: Data Gathering and Initial Preparation
When we receive your information, we begin to review and develop your financial plan. We prepare initial reports and identify additional information needed. Just as you have to disclose a great deal of information to your doctor, your lawyer, and your accountant in order for them to do their job well, we will need a great deal of information to make professional recommendations. In Step 3, you gather the data requested and mail, email, or upload this information to our secure client vault.
Step 4: Interactive Goal Setting and Data Verification
As we review and analyze your situation, we discuss and clarify the information you have provided thus far. To do this, we may contact you by e-mail or phone. You provide any additional information requested and further clarify your current situation, financial goals and objectives. You present any additional questions or concerns you may have. You then come in for a meeting to verify data and discuss initial findings.
Step 5: Analysis and Plan Formulation
We edit the initial information, as needed, and run additional scenarios, if applicable. We then conclude our research and analysis, and produce final reports for your personal financial plan, adding our observations and recommendations. As we move into Step 5, we will call or e-mail you to schedule a series of meetings for the presentation of your plan.
Step 6: Financial Plan Presentation
In Step 6, we present and review your personal financial plan with you over a meeting or series of meetings. We discuss all reports and provide you with a written summary of our observations and specific recommendations. At this point you will hold a personalized blueprint, custom designed to meet your financial goals. Full payment of the balance for actual fees incurred are due at the conclusion of our final plan presentation meeting.
Step 7: Plan Implementation
Proper implementation is crucial to reaching your financial goals. At the conclusion of our engagement, we will both decide whether it is best for you to implement and monitor the plan yourself, or contract with us to do this for you. If the latter course is taken, DFP will assist on an ongoing, fee-only basis with all implementation, including investment restructuring and management, purchase and restructuring of insurance, tax and estate planning, and regular reviews of your financial matters.
The cost for ongoing service is based upon a percentage of the market value of the assets placed under DFP’s management using the following fee schedule:
First $500,000 of assets under management = 1.00%.
Above $500,000 to $1,000,000 = 0.75%.
Above $1,000,000 to $2,000,000 = 0.50%.
Above $2,000,000 = 0.25%.
Please note there is a minimum annual fee of $5,000 for financial planning and investment management services.
Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the adviser’s services will vary based upon the client’s individual investment, financial, and tax circumstances. The effectiveness and potential success of a financial plan depends on a variety of factors, including but not limited to the manner and timing of implementation, ongoing monitoring and updating of the client’s plan, coordination with the client and the client’s other engaged professionals, and market conditions. Past performance does not guarantee future results. All investing comes with risk, including risk of loss.
