FAQ
Email: contact@michiganfinancialadvisor.com
What is the PFP Group objective for it’s clients?
The PFP Group primary objective is to assist clients in maintaining and growing their personal and business net worth. By implementing timely tax strategy, debt reduction, asset acquisition, and long term investment and financial planning our clients position themselves, their heirs and their businesses for sustainability and financial independence.
Do I need to be “wealthy” in order to become a client of PFP Group?
No. “Wealth” of course is a relative term, however anyone who has an asset level of at least $50k in cash or investments including retirement accounts can benefit from our services. In fact, we employ many of the same strategies for our “wealthy” clients with assets in excess of $1M for our clients well under that amount. It is a well known fact that most wealthy individuals, including our high net worth clients, became “wealthy” as a direct result of effective planning, investing, saving and tax strategy. While some strategies employed for high net worth clients may not be suitable to those with fractional amounts, we still stand firm to our objective of preserving and growing an individuals or business net worth through effective planning principles.
How is the PFP Group compensated for their services?
The PFP Group is a fee-based advisory firm that charges its clients either an hourly fee for planning and administrative work or a percentage fee of total net assets per year on retainer. Life Insurance and Annuity products are sold on a commission basis compensation structure.
What does “fee based” mean?
Fee based compensation stands in stark contrast to the majority of investment and financial advisory firms that you may see in public advertisements in television, radio, print or digital media. The large majority of those advertised “financial advisory” services are in fact merely stock broker/dealers that are looking to “sell” you investments in order to make a commission. This approach to financial planning in our estimation is not and could not be considered in the best interest of a clients financial position but rather in better interest to that of their own. The more product they sell in terms of investments (stocks and bonds) the more money they make. This happens regardless of the outcome of the underlying investment for the client.
Fee based compensation to PFP Group for services provided is structured in two ways. The first is a one time “fee” for a contracted service (i.e. retirement planning review, estate planning review, tax strategy analysis, education saving analysis, etc). The “service” is our analysis and recommendation provided to you in writing based upon the facts you have provided to us with regards to the item under review.
The second fee based structure is that of a yearly retainer fee as a percentage of total assets as used in your net worth calculation. In this scenario the “service” is our continued analysis, recommendation, periodic review (in person, phone or email) for each fiscal year period (Jan 1 – Dec 31).
What are the PFP Group fees for services?
The different fee structures are designed to provide a fair and reasonable fee for clients who have different needs, income, and types of wealth. The purpose of the different fee structures is to reflect the client who simply wants some financial advice on specific questions or topics, the client who wants advice and/or implementation on a specific project, and a client who wants on-going planning advice on his assets, liabilities, and responsibilities. For example, three clients may have identical income and net worth. Client 1 may simply want advice on a project; Client 2 may have all their assets in liquid assets such as cash, stocks and bonds; and Client 3 may have all their assets in illiquid assets such as commercial or residential properties, a closely held business, land, paintings, or antiques. The maximum fee options, subject to negotiation, are designed to reflect the appropriate advice in each case. The options are:
Financial Plan Only
The fee for a stand-alone financial plan with no further help, advice, or implementation by the advisor is an hourly or a project fee. Hourly fees are $100/hr.
Hourly or Project Fee
An hourly fee may be charged for consultation, planning, or investment advice. On some occasions, a flat fee will be charged for a specified project. The advice given is for that meeting or project only and no on-going help, advice, or implementation is required by the advisor after the meeting or project has ended unless agreed to in advance.
Annual Retainer
- Gross Assets. A retainer fee is based on a planning fee, income (excluding interest, dividends, capital gains and appreciation), a weighted percentage of gross assets, and the complexity of issues addressed.
- Invested Assets. A retainer fee is based on a planning fee (if applicable and appropriate), and the schedule outlined in the ADV Part II (see disclosures) beginning at 2% of invested assets and decreasing based on the amount of money invested.
Tax Deductible Fees
- The fees you pay PFP Group may be a tax deductible item on your Schedule A, (line 22 miscellaneous expenses greater than 2%), Schedule C (if appropriate) or corporate expenses if offered as a benefit to executives and/or employees.
How do you charge for financial advisory services?
Fees are based on the actual time involved in meeting with a client in person or via the phone, researching and analyzing that client’s current situation, and providing specific recommendations and implementation assistance (if appropriate). Good Financial Advisors provide prospective clients with firm quotes of their estimated fees at the end of an initial no-cost, no-obligation session.
Does the PFP Group sell stocks or other investments?
No, the PFP Group does not act as a stock or investment broker on behalf of its clients. That said, the PFP Group will work with it’s clients to assist in creating a balanced portfolio of investments based upon an individuals investment plan. Such investments within a portfolio could include Life Insurance products, Annuities, Real Estate Investments, Private Equity Placements, Securities, Bonds, CD’s and other derivative investment vehicles. None of the previously mentioned investments are “sold” by the PFP Group to the investor other than the Insurance and Annuity contracts.
Does the PFP Group sell Life Insurance products?
Yes, the PFP Group is licensed within the State of Michigan to sell Life Insurance and Annuity products to it’s clients in addition to being state licensed to counsel it’s clients with regards to existing life insurance policies and annuity contracts.
Does the PFP Group perform tax advisory or tax preparation services?
Yes, the PFP Group provides both tax strategy/advisory and tax preparation services on behalf of it’s clients. All work is performed by certified Tax Attorney’s and Certified Public Accountants licensed in the State of Michigan.
Does the PFP Group perform debt reduction or consolidation services?
No. The PFP Group provides debt analysis and consolidation recommendations and can facilitate such measures with licensed Debt Counseling practitioners.
Does the PFP Group provide venture capital investments?
Yes. The PFP Group both solicits venture inquiries and and facilitates private equity placements. Clients interested in participating in private equity placements should contact their PFP Group principal advisor for more information.
What is the “Follow Us” icon on the right hand side of the page for?
The “Follow Us” icon is to allow our clients to “Follow” our periodic updates via our Twitter account pfpgroupadvisor. We will periodically “tweet” reminder information regarding tax deadlines, tax planning tips, and even our own investment activities. Such investment activities are NOT to be considered investment advice, it is only provided for informational purposes to our clients who actively participate in their own investment activities. PFP Group is NOT an investment broker/dealer and does not recommend or sell publicly traded securities or debt instruments.