A portfolio review doesn’t have to be expensive or complicated. With The Portfolio 2nd OpinionTM, it isn’t!
What Does A Portfolio Review Cost?
For this one-time engagement, you pay a fixed, one-time fee: $925. Returning clients are billed $450 an hour. That’s it.
There are no ongoing fees. No monthly or annual subscription commitments. No assets under management (AUM) billing. No commissions. Just a single, fixed transparent fee for easy-to-understand advice.
What Do I Get for My Money?
The Portfolio 2nd OpinionTM shows you – in plain English – what you can do to improve your finances.
How Long Does It Take?
In a single day, we can complete the entire process. You can expect the final write-up in three days or less.
How Does this Process Work?
The Portfolio 2nd OpinionTM uses a simple three-step process.
Step 1. Complimentary Introductory Call – 15 minutes
During this short call, I will answer any questions you have – and review the three-step process for the Portfolio 2nd OpinionTM. If we decide we should work together, you then schedule Step 2., the phone consultation.
Step 2. Phone Consultation – Up to Two hours
During our call, we will discuss where you are today, and where you want to be. We’ll review the areas of retirement saving, tax planning, asset allocation, asset location, investments, retirement distributions, estate planning, insurance, and more.
Step 3. Portfolio 2nd OpinionTM Write-Up Delivery – Three-Day Turn-Around
Following our call, you receive the Portfolio 2nd OpinionTM write-up. This simple document outlines what you can do to improve your finances.
What if I Have a Question About the Write-Up? Do I Need to Pay $450/hour for Follow-Up Questions? When Do I Pay $450/hour?
Answers clarifying anything in the write-up are included in the one-time fee of $925. The $450/hour rate applies to future engagements, or for complex calculations such as designing a custom tax-efficeint fund placement strategy, or for a custom strategy of selling investments from a taxable account.
Is the Portfolio 2nd OpinionTM a Comprehensive Financial Plan of a Client’s Overall Position or a Portfolio Analysis?
The Portfolio 2nd OpinionTM is not a comprehensive financial plan. However, to design the right stock/bond mix for you, we will look at many pieces of your financial life, including:
- tracking spending and your rainy day fund;
- life, disability and umbrella insurance, (with additional property & casualty insurance advice included in the write-up);
- opportunities for tax savings, including maximizing contributions to tax-advantaged accounts;
- Social Security retirement benefit claiming strategies;
- living off your portfolio in retirement (i.e., sustainable distribution rates); and
- making sure you have completed your estate planning.
Looking at your financial life broadly not only gives us the critical information for putting together an investment plan for you, but also helps us find some financial planning blind spots that you might not be considering.
Do You Provide Investment Advice for Someone Like Myself?
In the write-up, most clients receive a simple three- or four-fund portfolio allocation. The write-up details precisely which mutual funds (or ETFs) to pick, and in which amount. A single fund (such as a target-date fund or balanced fund) could also be appropriate for some clients.
For those clients not comfortable managing their investments themselves, we can discuss how to outsource investment to a low-cost professional.
How Do You Analyze a Client’s Plan in Two Hours? Do you Do an Analysis Before the Call?
I review client uploads before each call. Depending upon the volume of the uploads, I can spend up to two hours on pre-call prep. Including a pre-call review, the call, and the write-up afterward, I can spend up to eight hours on a client engagement. Though, it’s usually less. I tend to average around six hours per engagement – but time spent varies with complexity.
I document takeaways in the write-up (following the call) that clients can read at their leisure.
Do You Look at a Client’s Insurance Coverages for Gaps?
On the call, we look at life, disability, umbrella insurance gaps, and – if appropriate – long-term care insurance. In the write-up, I cover auto and homeowner’s insurance.
Do You Look at Tax-Savings Strategies?
We can discuss tax-loss harvesting, tax-advantaged investments accounts (HSA, IRA, 401(K) and 529), and asset location. If appropriate, we cover early-retirement strategies, investment liquidations, tax-efficient giving, tax-efficient distributions, and Roth conversions.
We’ll focus primarily on federal taxes, and not state or local taxes.
Do You Do a Monte Carlo Analysis?
There are shortcomings with a Monte Carlo analysis, including problematic correlations between asset classes, no consideration for mean reversion in markets, and arguably overly optimistic assumptions about future returns.
I focus on distribution rates when determining a retirement plan’s viability – relying on the research (linked in the write-up) that suggests what is sustainable.
If you need a Monte Carlo analysis, I’m not the right financial planner for you.
Will You Tell Me Which Trust (ILIT, SLAT, or CRAT) is Right for Me?
You will want to work with an estate attorney to help you decide which trust is right for you.
During our call, I confirm if you have created – or recently reviewed – your estate planning documents and beneficiary designations. We will also discuss other estate planning best practices – such as creating and sharing an Emergency Letter.
I am Sitting on Cash Because I Don’t Know How, or Am Too Scared, to Invest in the Market. Can You Help Me?
During our call, we can determine the most appropriate investment strategy. We can consider not only dollar-cost averaging, but creating a stock/bond mix that best manages the risk to your retirement plan. That can include discussing if outsourcing management of your investments to a low-cost manager is best for you.
Is the Portfolio 2nd OpinionTM Right for Me?
The Portfolio 2nd OpinionTM works best for self-motivated people who don’t want a financial advisor to do the work for them. People who can self-manage their investments and check the boxes of their financial To-Dos themselves can save money with this easy, and quick financial review.
This service works best for those investors who understand (or are interested in learning) the tried-and-true keys to successful investing:
- keeping costs as low,
- diversification, and
- sticking with your investments – no matter what the market does.
My Partner Needs More Hand-holding, and They Wouldn’t Be Able to Manage Our Family’s Investment without Me. Can You Assist my Partner If Something Happens to Me? Are the Investment Managers You Suggest Vetted?
For those investors looking for investment management, we suggest a gentleman who was Rick Ferri’s lead portfolio manager for over ten years when Rick was the owner of an investment company. If that’s the case, this manager then implements the investment plan we provide in the write-up, conferring with us as needed.
What Does Your Financial Plan Look Like? Can I See a Sample Financial Plan?
You can download sample financial plans for do-it-yourself (DIY) investors below.
- sample financial plan for dual-income DIY investor household, with the majority breadwinner retiring this year
- sample financial plan for late-career medical professionals firing their investment manager to become DIY investors
How Do I Get Started?
Schedule a 15-minute complimentary introductory call.