What’s the difference between the two financial planning + investment management services?

All clients begin with a flat monthly fee of $625 as we initiate the financial planning process. This monthly fee includes professional investment management. When your managed investment balance exceeds $500,000, you will benefit from a lower AUM fee, which will replace the flat rate fee. Please note that the AUM fee starts at 0.90% and is discounted according to the table below.

What is AUM?

AUM is an abbreviation for Assets Under Management. The percentage represents the annual fee calculated on the balance of investments managed. For example, if the balance of investments managed by Modern Money Management is $1 million, an AUM fee of 0.80% would amount to $8,000 annually. While the AUM percentage is quoted annually, fees are prorated monthly. The fee is directly debited from investment accounts pro rata.

Do you offer a discount on fees?

Yes, fees are discounted based on the amount invested and according to the table below:

For example, if the balance moves from $1.9 million to $2 million, the entire balance of investments will be billed at a rate of 0.70%.

Will I need to move my current investment accounts?

Although I operate independently, I prefer handling investments through Schwab or Betterment. If I'm managing your investments, I’ll assist with opening accounts, making transfers, and handling deposits. Often, transfers demand minimal effort and can be done online.

What type of investment accounts can you manage?

I can manage most types of investments, including individual brokerage accounts, joint brokerage accounts, trust-owned investment accounts, IRAs, Roth IRAs, solo 401(k)s, SEP IRAs, and others.

I can advise on investments but cannot directly trade employer-sponsored retirement plans, such as 401(k)s, 403(b)s, or 457 plans. Because I cannot actively trade these accounts, fees will not apply to these types of accounts, and they will not count toward assets under management. If appropriate, employer retirement plans from previous employers can be transferred to IRAs, which I can directly manage.

Are you available for one-time meetings, projects, or at an hourly rate?

I currently do not offer services for one-time engagements. I am available hourly for limited-scope projects if I also manage investments (i.e., investment management service). My hourly fee is currently $300 per hour and is prorated in 15-minute increments.

Do you require a minimum amount of time to work together?

I work best with families interested in a long-term financial partner, where I can help them through the ebbs and flows of life. While I do not formally require a minimum amount of time working together, I do ask for a verbal commitment to work together for at least one year. It takes time to analyze and get to know each other, and I want to be sure I fully understand your family's goals and values. I want to ensure we have an appropriate amount of time together to analyze potential outcomes, answer your questions, and implement systems that complement your goals.