In the realm of financial planning, the term 'Asset Under Management (AUM) fees' often surfaces. But what does it truly cost? The industry norm is an annual charge amounting to 1% of AUM. To put this into perspective, managing a $2M portfolio at this rate would incur a yearly fee of $20,000, or $1,666.67/month. This fee, however, tends to be buried in your account statements, leading to a lack of awareness among many.
Curious about what this means for your finances?
Use the calculator below to gauge the monthly fee you're currently paying based on your AUM:
At Purpose Built, our philosophy is centered around providing superior service with absolute transparency when it comes to fees. We've simplified our approach into two straightforward tiers, reflecting the complexity of your financial needs rather than the sheer volume of your assets.
Here's how we differentiate:
For those looking to have somebody in their corner for the long term
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For those who would like a short-term engagement with a financial planner
For families with equity compensation, Solopreneurs, and Business Owners with more complex needs
*Does not include partnership, S-Corp, or international returns returns but have an outside CPA we work with to work to handle.
**Investment management is included up to $1,000,000 of assets under management(AUM). Above that amount the annual fee is 0. 50% up to a maximum combined fee (planning plus AUM) of $20,000.
During this 30-minute introductory call, we aim to assess if Purpose Built is the right fit for you. We'll discuss your financial goals at a high level and also answer your questions to determine if our services can address your needs.
Once you’ve decided to move forward, we'll request crucial documents such as your financial statements and the prior year's tax return. These documents are essential for a comprehensive financial analysis.
At the initial meeting, we’ll refine your financial goals, including college expenses, retirement plans, long-term care considerations, and other savings objectives. We'll also discuss investment preferences and risk tolerance to tailor your plan to your unique situation.
We provide a comprehensive written plan with specific recommendations on how to achieve your goals. We'll also present a portfolio analysis with suggestions to better align your investments with your ideal allocation.
After you've reviewed the financial plan we provided, we'll schedule a meeting to go through it together. The plan is not complete until you have a clear understanding of the proposed financial strategies and all recommendations are assigned to responsible parties.
To prevent key financial tasks from falling by the wayside, we have accountability built into our process. We track tasks and check in as needed, guaranteeing that you stay on course and feel secure about your financial future.
Check-ins as necessary, a tax filing review meeting, and a fall strategy meeting to create an up-to-date plan, update investments, track your net worth growth, and make necessary changes.
