Why Our Firm Offers Flat Annual Retainer

Our firm understands that advisement of a client’s portfolio is an integral part of their financial life plan; however, it is not the only element that contributes to meeting a client’s goals and aspirations.

At Suncoast Advisory Group nothing inspires us more than helping clients turn someday dreams into reality today. In order to accomplish our mission, we need to understand our clients before the numbers through their values and ideal vision to assist in improving their sense of fulfillment and quality of life.

Over the past decade there has been a tremendous shift in the way financial advisors have been compensated for their services. Today most financial advisors are compensated by receiving a fee tied to a client’s investable assets. An example of this arrangement is a client who invests $1,000,000 will normally pay an average of 1% for the financial advisor’s advice.

This means as a client’s portfolio appreciates, so does the financial advisor’s compensation. Our firm’s position is, “why should clients pay more to receive the same financial services?” We feel a flat annual retainer is a more appropriate compensation method determined by the complexity of a client’s personal and financial situation along with a customized financial service process and experience. To illustrate our example one step further, assume a client invests the $1,000,000. Most financial advisors will charge 1%. The client’s assets invested over 20 years, appreciating at 6%, would have a net return of $2,653,300. A flat annual retainer of $7500 over those same 20 years at 6% would have a net return of $3,057,155, or $403,855 in total cost savings (in other words, additional appreciation of portfolio through flat annual retainer).

Clients are paying for our financial life planning process; enhancing their quality of life is the payoff.

Vision without action is merely a dream: vision with action can change the world

— Joel Barker