Why flat fee?
The decision to charge a flat fee is rooted in several key considerations:
- Conflict Mitigation: When advisors’ compensation is tied to assets under management (AUM) or commissions, conflicts of interest can arise. For instance, an advisor evaluating a mortgage payoff might be influenced by the potential impact on their own compensation. By using a flat fee, we eliminate this conflict and focus solely on your best interests.
- Holistic Advice: Our flat fee allows us to provide comprehensive advice across all your assets, including those held elsewhere. Whether it’s retirement accounts, real estate, or other investments, we can guide you without any bias related to compensation.
- Complexity and Resources: The size of your investment account doesn’t always reflect the complexity of your financial situation. Managing a $3,000,000 portfolio doesn’t inherently require three times the effort as a $1,000,000 portfolio. Our flat fee accounts for the time and resources needed to serve you effectively, regardless of account size.
- Cost Savings for Clients: A standard advisory fee, based on a percentage of assets, typically ranges from 0.8% to 1.5%. For instance, a $1,000,000 portfolio would incur an annual cost of $8,000 to $15,000, with costs increasing considerably along with the portfolio's size.
What types of clients does Ridgeback Wealth Management work with?
- Couples Nearing Retirement: If you’re approaching retirement within a few years, Ridgeback Wealth can assist you in planning for a secure financial future.
- DIY Investors Seeking Delegation: You have some knowledge of market theory and understand why indexes are a smart investment choice. However, you are uncomfortable with robo-advisors or algorithms and would prefer a closer relationship with a trusted advisor.
- Couples with Complex Lives: Whether you’re getting married, having children, or dealing with aging parents, Ridgeback Wealth helps navigate the financial complexities of life transitions.
If none of these descriptions apply to you, feel free to schedule a call so we can learn more about your needs. If we're not a good match, we can assist you in finding another adviser within our professional network.
I'm not interested in investment management; do you offer advice only?
Certainly! If you’re not interested in investment management, Ridgeback Wealth Management provides financial planning services in two ways:
- Subscription Basis: You can opt for our ongoing financial planning subscription.
- Project-Based: Alternatively, you can choose one-time project-based financial planning billed at a rate of $250 per hour.
What is Investment Management versus Financial Planning?
Financial planning encompasses all aspects of a family's financial life, including budgeting, insurance, home ownership, and more. It is a comprehensive process considering short-term and long-term goals, risk tolerance, and intergenerational wealth transfers.
On the other hand, investment management deals explicitly with the nuts and bolts of managing financial assets such as trading equity or bond funds and rebalancing periodically.
I don't live in Georgia. Can you still work with me?
Our services extend to US citizens across all states. Thanks to digital advancements like e-signatures and virtual meetings with screen sharing, physical location is no longer a barrier.
Is there an asset minimum to work with you?
Nope! If your portfolio size hasn’t reached $300,000 yet, you can begin by building your financial plan with us as financial planning-only clients. We’ll guide you through the process, and you can implement the plan independently until you reach the investment management level.