Fee transparency, affordability, and fairness are part of the core philosophy of PIM Financial Partners.

Transparent Fees

PIM Financial Partners charges a monthly retainer fee for financial planning and investment management services. The amount of the monthly retainer is based on the total amount of your assets being managed, with a cap on fees for assets under management (AUM) over $600,000. The following table shows a complete breakdown of the fees and the services you receive for the fees charged.

Virginia beach financial planner fees

This fee structure is designed to be fair and to make financial planning and professional investment management services available to the broadest possible number of clients. It is posted here to make it totally transparent. PIM does not accept commissions, referral fees, or broker soft money kickbacks. There are no conflicts of interest of any kind. The client pays directly for the service and knows exactly what they are paying for.

If you can't easily find (or understand) the fees other financial advisers are charging, ask yourself why.

Affordability

Most middle income Americans would benefit from financial planning services1, but the middle income market is under-served by the majority of financial planners2.  PIM Financial Partners believes professional financial planning should be affordable to middle Americans. The increased efficiency of a solid financial plan is far more valuable to people in the middle - where there isn't excess income to waste. In order for them to extract this value, middle Americans must be able to afford the service. This common sense approach is reflected in the fee structure as outlined above. Most Americans spend more each month for cell phone and internet service than they would for a financial plan at PIM Financial Partners.

Fairness

The most common fee structure for assets under management is based on a percentage of the assets managed3. The more you have, the more you pay. I regard that as fundamentally unfair. Higher net worth Americans should not have to pay inflated prices for investment management services just because they have more assets to manage. The fees at PIM Financial Partners increase for assets under management (per the table above), but so do the services provided. As your portfolio grows, the complexity of managing it grows. There is a significant difference in the way PIM manages portfolios of $50,000 and $600,000.  Above $600,000, however, the management techniques do not significantly change. You get the same service whether you have $600,000 in assets or $6,000,000 of assets. So, once you surpass $600,000 of assets being managed by PIM your fees remain flat.

You get the same service, you pay the same fees. Fairness - plain and simple.

 


Footnotes

1. Laura Shin, 2013, "10 Reasons Why Financial Plans Aren't Just For The 1%", Forbes August, 7, 2013

2. Harness, Nathaniel, Swarn Chatterjee, and John Salter. 2014. “Financial Planning for the Middle Market.”  Journal of Financial Planning 27 (4) 48-54.

3. AdvisoryHQ, "Average Financial Advisory Fees in 2016. How Much Does a Financial Advisor Cost?" May 18, 2016

 

 

The information posted to this website is for education purposes and is not intended to be investment advice. 

Registration as an Investment Advisory in the Commonwealth of Virginia does not imply an endorsement by Virginia, nor does it mean the Commonwealth of Virginia certifies or verifies my knowledge, skills, or experience as an investment advisor. 

PIM Financial Partners provides financial planning and investment advice to residents of Virginia. Residents of other jurisdictions are considered on a case basis depending on the laws governing investment advisors where they live.

 

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