Step 1: Understand Compound Interest

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I'm an "Aggressive Investor".  At least that's the tag that gets put on my when I do a Risk Assessment.  What that really means is that I am comfortable with the stock market.  This comes from years of watching the market go up and down - then hitting a new high again.  I'm also a Lieutenant Colonel in the Army Reserves, have been in stressful situations and don't panic very quickly.  That's another "tick in the box" that Aggressive Investors need.  Last but not least, I'm a husband and father of a 13 year old daughter.  My focus is on the long term benefit of my family and my future generations.  That, too, is a "tick in the box" that an Aggressive Investor should probably have.

My specialty is the DIY Investor that is going into the Distribution Phase.  As an "Aggressive Investor", I know what it's like to be in the stock market.  You do too.  But do you know how to turn your nest egg into "things" such as vacations, inheritances, charity, long term care and basic living expenses...while managing taxes?  This requires more organization than the Accumulation Phase.  And you need to have a plan to manage market volatility if you want to stay in the market.  Most advisors will try to weight your portfolio with bonds and insurance products.  I think that approach is very expensive AND will cost you quite a bit in opportunity over the years.  That's why I recommend the Buckets Strategy and using TIME as a hedge against volatility.

One last point that's not insignificant:  I'm 49 years old.  In the Distribution Phase you need someone younger than you so they will still be working as you move through Retirement.  If your advisor is your age, don't you think they are trying to retire too?  

I get people organized and I educate them on the market.  As I stated above, the Accumulation Phase is really not that hard.  Get your money invested ASAP - then close your eyes.  The Distribution Phase is a little trickier. Now your nest egg is the source of your income.  Done correctly, that nest egg can turn into a Golden Goose - and that's where organization and education come in to play.  Investing in the stock market got you here.  You don't need to abandon it just because you want to retire!

The Buckets Strategy!  My process of helping people is the same for everyone.  I talk through the Buckets Strategy and then we start to place money.  How much cash (AKA Time) do you need to feel comfortable?  What's your plan for LTC?  Do you need a Vacations Bucket?  And finally, we talk about Taxes, Wills, Trusts and Umbrella Policies.  None of this is that hard...it just takes getting organized and educated.  (See the theme?)

My standard package includes the selection of an Investment Manager along with Financial Planning.  My starting rate is 1.2% of Assets Under Management.  That includes both areas and is called a Wrap Fee, if you speak that language. That percentage comes down as the Assets increase.  For example, on average, the sub-advisors I use cost 50 BPS.  (If we just use an Index, then that fee gets reduced .)  Then I charge 70 BPS for Financial Planning for the total of 120 Basis Points (1.2%).

To make sure there are no surprises, I make sure the client understands the Financial Planning Services I will provide and that cost in dollars.  That means all of this is negotiable based on what I'm doing and the investments that are chosen.