Our Services and Fees
We Are Committed to Providing
Massive Value to our Clients
Whether you are an long-standing client, or just going through the introduction process, our aim is to always demonstrate our value.
After going through our introductory process, we want you to take as much time as you need to evaluate if we will provide multiples of value to you.
What We Offer
We provide ongoing planning and advice about all aspects of your finances.
This includes discretionary management of your investments and ongoing tax minimization planning. Additionally, we can coordinate the preparation and filing of your income tax returns through Retirement Tax Services.
Ongoing Financial Planning
The starting point of our ongoing service is the creation of your financial plan, which is the roadmap for future decision making.
However, as life happens, financial markets do what they do and tax legislation changes, your financial plan will inevitably evolve. With our ongoing planning & investment management service, we're there to
be your trusted partner to help you make the necessary decisions along the way
After completion of your initial plan, we'll work closely with you
throughout our relationship. Typical areas in which we provide ongoing
advice are:
- annual portfolio withdrawal strategies
- Roth conversions
- establishing when to claim Social Security
- selecting pension payment types
- transferring and/or consolidating investment accounts
- reallocating investment portfolios
- determining health insurance options
- establishing a spending plan
- consolidating debt
- refinancing a mortgage
- buying or selling real estate
- amending insurance coverage
- updating estate documents and beneficiary forms
- changing income tax withholding elections
Financial planning is a process, not a product. It's a close ongoing relationship between us involving regular Zoom meetings, calls, e-mails, etc.
The ultimate goal is for us to help you make the best possible decisions around your finances to allow you to live your best possible retirement!
We'll typically have two formal meetings per year to update your plan, refine your portfolio withdrawal strategy, determine each year's tax planning objectives and actions, review estate plans and wishes, discuss any questions you have, etc.
While the goal is to have the two official meetings each year, you're not limited to only working with us every six months...we're here for you as life happens! We're accessible by Zoom, phone or e-mail as life unfolds and financial decisions need to be made.
We'll also provide ongoing discretionary management of your investable assets, through accounts held in custody at Interactive Brokers. We use a straightforward, passive and fee-conscious investing approach that
ensures your portfolio will remain diversified, low cost and properly allocated for your risk tolerance and financial profile. We typically invest using a combination of Vanguard exchange traded funds ("ETFs")
that track major stock and bond indices.
Investment Management
The goal of Lifeproof Financial managed portfolios are to maximize growth and reduce volatility.
Once Clients have completed the Investment Analysis process, customized portfolios are created to meet clients’ financial needs and objectives.
Our primary methods of investment utilize capital efficiency to effectively blend passive and active
management strategies.
The passive strategy portion of the portfolio is composed of various distinct asset classes (typically equities and bonds). The asset classes are weighted in a manner to achieve the desired relationship between correlation, risk, and return. Funds that passively capture the returns of the desired asset classes are placed in the portfolio. The funds that are used to build passive portfolios are typically index mutual funds or exchange-traded funds.
The advantages of passive management are:
- low portfolio expenses (i.e. the funds inside the portfolio have low internal costs),
- minimal trading costs (due to infrequent trading activity),
- relative tax efficiency (because the funds inside the portfolio are tax efficient and turnover inside the portfolio is minimal).
In contrast, the active strategy portion invests in an ensemble of active managers who employ varying methods, strategies and/or techniques to capture returns from sources that are structurally uncorrelated with the passive portfolio. The managers typically allocate fundamental, technical, and quantitative strategies to a large basket of global asset classes across equities, bonds, currencies, commodities, and
sometimes to more esoteric markets like carbon credits, volatility, etc.
The advantages of active management is:
- exposure to markets far beyond stocks and bonds and that have the ability to profit in bull, bear, and sideways markets.
Portfolios are further able to increase the efficiency and diversification benefits of combining passive and active management by utilizing capital efficient ETF’s and mutual funds. Capital efficiency measures the amount of market exposure one can achieve with an investment per unit of capital invested. The addition of using capital efficiency with non-correlated assets can substantially improve portfolio efficiency by increasing returns, reducing volatility, or both.
What Will It Cost?
Ongoing Financial Planning
Our Financial Planning fee is based on a flat fee range and is calculated as follows:
The annual fees are negotiable, prorated and paid in arrears on a quarterly basis. The fee range is flat, ranging from $3,600 to $36,000 annually. The fee is to be mutually agreed upon with the client prior to Lifeproof Financial LLC starting work on the client’s
financial plan. The fee determination is based upon the complexity of the client’s financial profile and therefore the resources required to service the client during the year.
Clients whose annual fees are on the low end of the fee ranges ($6,000-$8,000 typical) are clients whose financial profiles have minimal complexity. Typical aspects of a client with minimal financial complexity include, but are not limited to, the following: single with no children, no ex-spouses or no other dependent persons, a W-2 wage earner as opposed to self-employed, does not own any real estate, does not own any investments besides liquid publicly traded securities and pooled investment vehicles, does not have any particular legacy goals for his or her estate, etc.
Clients whose annual fees are on the high end of the fee range ($8,000-$12,000 typical) are clients whose financial profiles contain a lot of complexity. Such clients may include, but are not limited to, business owners, clients with large holdings of real estate or other less liquid assets, clients with highly structured legal estates, clients whose household has multiple different investment accounts, etc.
Investment Management
Our Investment Management fee is based on a graduated fee schedule and is calculated as follows:
