Hi all, I’m pretty new to the world of financial planning and investments and my partner and I just engaged a financial planner for the first time to have an initial meeting. Turns out their business model is a flat fee for the first “statement of recommendations” which would include modeling scenarios based on some imminent decisions we need to make (eg renting or buying in the USA), and then a 1% assets under management fee for anything we decide to invest (that they would manage in Australia) so we can “grow our wealth in the country we aim to finally settle in” and “avoid currency exchange risk” in the future.
I understand that many would advise not to engage with this kind of percentage model, and I’m inclined to agree, but I think we’d both really like an initial statement of recommendation, and then would be open to a management fee at a flat rate. Apparently this group only offer the statement under the assumption that we’re “serious about the ongoing management option too”, but that we “wouldn’t be contractually obligated.” That implied pressure, and also the fact that I feel like they’ve equivocated about their pricing model (we recorded both calls we had and on the first one they said the management fee was “typically flat” and on the second call that it was “a percentage, but it could be a flat fee that is determined by a percentage (!?)”) makes me feel not very trusting of them. But I also feel very torn because they are extremely knowledgeable about Australians like us in the USA who are looking to eventually move back home in the next five years.
What do others think? Does anyone have recommendations for someone (or tips on where to look) who offers fee for service or flat-fee pricing models and has expertise in USA Australia? Thanks in advance!
I understand that many would advise not to engage with this kind of percentage model, and I’m inclined to agree, but I think we’d both really like an initial statement of recommendation, and then would be open to a management fee at a flat rate. Apparently this group only offer the statement under the assumption that we’re “serious about the ongoing management option too”, but that we “wouldn’t be contractually obligated.” That implied pressure, and also the fact that I feel like they’ve equivocated about their pricing model (we recorded both calls we had and on the first one they said the management fee was “typically flat” and on the second call that it was “a percentage, but it could be a flat fee that is determined by a percentage (!?)”) makes me feel not very trusting of them. But I also feel very torn because they are extremely knowledgeable about Australians like us in the USA who are looking to eventually move back home in the next five years.
What do others think? Does anyone have recommendations for someone (or tips on where to look) who offers fee for service or flat-fee pricing models and has expertise in USA Australia? Thanks in advance!