How does this all work?
1) Why Outsource? Obtain a virtual CFP support network that can be set up in a few days:
Free up your Time Michael Kitces creates an annual report called “How Financial Planner’s actually do Financial Planning” which has a lot of great insight. It points out that advisors spend almost half their time on delegable tasks and spend more time on plan creation than in meetings. They found the mean plan creation time to be 13 hours - if you do a plan a month delegating it can save you almost 20 days of work in a year resulting in a higher quality of life and more time for you to spend on higher value services - like meeting with clients and working on your business as opposed to in it. And since we’re ready to go at day one, you don’t have to train us or have any lag time.
Planning Focus All we focus on is financial planning. We are well versed in various systems, niches, and planning software. We’ve supported advisors from Alaska to the Florida Keys - this diverse work experience allows us to add perspective and help you create a solid financial planning process.
Flexible By outsourcing you have no fixed costs or minimums. If you don’t need us one month, your planning costs are $0. We don’t require a desk, sick time, or a fixed salary. But when you have an influx of plans, you’ll have a team of planners at your service.
2) What is the Cost? We bill at $150 per hour. At the end of every month, I’ll send out a FreshBooks invoice for work incurred that month - we accept bank transfers, checks, debit cards, and credit cards. Estate or tax planning services provided by Jacob will be billed $200 per hour when requested.
Most plans cost between $900 to $2,800 depending upon complexity, how organized the data is upon delivery to Foundation ( a complete and accurate fact-finder takes less time then reviewing dozens of source documents), the level of customization you require, your software choice (eMX & NaviPlan take more time than RC or MGP), and what parts of the planning process you need help with - including how much you use us for client facing activities. We’re glad to structure an engagement that fits your budget, desired involvement, and needs.
3) What Disclosures & Compliance are Needed? It’s usually a quick and simple process to establish a relationship.
You: Disclose that you are working with us on your ADV and/or privacy policy. Often RIA firms have a standard disclosure regarding outsourcing already and no further action is required.
Me: l’ll send you a copy of our Client Engagement Agreement to sign and provide our ADVs and Privacy Policies to you digitally, then we’re ready to begin.
4) What is our Turnaround Time? Once we’ve received all the data we need to complete a plan draft, we’ll be ready to review it with you within two to three weeks, often much sooner. We’re happy to accommodate accelerated turn arounds dependent upon our capacity.
If you are in a discovery meeting with your client and want to schedule a plan review meeting, we recommend you set it a month out. This leaves time to complete any remaining data gathering, address any questions or missing information, and for us to find a time to review the plan together.
5) Who Does What? Typically a financial plan has the following steps:
Discovery Meeting: The client’s current situation, values, goals, and objectives are ascertained.
Data Gathering: Either a fact finder is completed or statements and notes are compiled.
Data Review: The information is reviewed and organized. Any missing items are noted and requested.
Data Entry: Relevant items are entered into your financial planning software and/or into our workbook.
Plan Creation: Scenarios are run and a written actionable plan is drafted.
Plan Draft Review: A zoom meeting between us and your firm to go over the plan draft, collaborate, and make sure you have a 10 out of 10 level of confidence in the plan. Alternatively, we could provide you with a Loom or Zoom recording taking you through our deliverable.
Plan Presentation: The plan and its recommendations are reviewed with the client.
In most of our relationships, advisors handle the Discovery Meeting and Data Gathering steps directly then punt the case over to us. After we have our review meeting, usually the advisor will then handle the client presentation directly. But we’re happy to assist (or provide guidance) with these as needed! If you need a fact finder, want us to cover the plan presentation, or just need some backup on occasion, we can do this as well. Some advisors simply CC us on an e-mail with a client to get started and we handle absolutely everything.
6) How should I present you to our Clients Some firms do not want to emphasis their use of an outside financial planner to their clients beyond the required disclosures - this will not offend us! However, others intentionally spotlight working with us to let clients know they are taking a team approach, are partnering with professionals, and present depth. We can be featured on your website as your financial planner or can stay in the background - we’re fine either way!