This article is the second in a series inspired by a Forbes Magazine article that listed a number of questions you should ask a financial advisor.
You might wonder how a financial advisor is compensated.
The primary service provided at Sampson Investment Management is the management of client portfolios to meet important short, intermediate, and long term financial goals and objectives.
We charge for these services on a percentage of assets under management basis. Typically such fees start at 1% per year and decrease at specific breakpoints. Charging in this way removes conflicts of interest in the selection of appropriate investment vehicles for our clients portfolios. What this means is our goals align. It is in ours, and your, best interest to maximize your assets under management, not to push a specific product. Having said that, we are firm believers in living life in the middle. While saving for retirement is important, living life in the now should not be totally sacrificed. We write about that often in Life in the Middle series.
While we do not have hard and fast rules about the minimum value of the accounts we manage, $250,000 is typically the entry level for new clients. Part of what sets us apart from other financial advisors is that we provide financial planning services within this management fee.
It is our feeling that the planning process allows us to accurately assess your initial financial position, so we can better assist in the development of a plan to reach their future financial goals and objectives. In providing these services as part of our asset management fee, we feel we are adding a service that significantly increases our value proposition to the clients we serve.
We welcome your questions in the comments below, email us privately, or call us at (925) 743-8449.