Prospect Financial Group LLC provides investment management, financial planning, and implementation support services, most often in concert as part of an ongoing relationship. In limited instances and where appropriate, we may manage selected assets or develop standalone financial plans for clients.
Comprehensive Planning and Investment Management
By far our most popular type of engagement. We provide integrated financial planning, investment management, and implementation support for a quarterly fee for clients with assets under management over $1 million. As a fee only advisor, we do not earn any commissions on the sale of investments or any financial product. Fees are based on the assets under our management and start at 1% per year (0.25% per quarter) with a minimum fee of $10,000 per year (or $2500 per quarter). At our discretion, we may waive or reduce the minimum for family members of clients or referrals. Fees are typically debited directly from client portfolios and are not an out-of-pocket cost to the client. We believe that clients benefit greatly from a comprehensive approach where we manage a portfolio of accounts dedicated a retirement, education, or major purchase goal, rather than accounts in isolation, and we typically advise clients on their entire net worth, including assets in 401(k) plans. Fees apply to all assets that we manage regardless of where they may be held. At higher asset levels, we reduce our fee rate more dramatically than other advisors to give clients an incentive for us to manage all of their assets.
Investment Management
Clients with less than $1 million in assets under management may engage us for financial planning and investment advisory services separately. Investment advisory fees are 1% of assets under management. The minimum annual fee is $5000 (including fees for financial planning services).
Ongoing Planning
We may provide ongoing financial planning services for a quarterly retainer ranging from $500 to $2500 per quarter based on your net worth and complexity of the services provided. This is a good option for those who may not have accumulated enough assets yet to justify investment management or may have very simple investment needs at this time (eg, savings only in the default investment option in a single 401(k) plan). Fees are generally about half of those for a comprehensive engagement.
Financial Plan
We may develop financial plans for family members of current clients or other referrals for a project-based fee of $5000 to $10,000. We believe that planning is an ongoing process that requires implementation support and frequent updates, so we only provide standalone plans when a client’s situation is simple or static enough that we think we can add value in this way.
Setting Direction
For clients who are not yet ready for a comprehensive engagement, we can help to set direction for a fee of $350 per hour for a Lead Advisor, $75 per hour for a Customer Service Associate, and $100 per hour for a Paraplanner. We believe that most financial questions require detailed analysis and that clients benefit from an ongoing relationship. This option is targeted at young individuals and couples who are just starting to save but want to learn about the best ways to do so before being ready for more comprehensive services.