Physicians and Investing
Unique Financial Challenges Physicians Face
According to the Association of Medial Colleges, 76% of medical school students graduate with at least $192,000 in student loan debt. Furthermore, it is unlikely that they will pay down much of this debt during their residency period. The beginning of the high earning years for physicians is 7 to 11 years after completing their undergraduate work. This compressed earning period demands a higher savings rate compared to other professionals. Therefore it is essential to have a financial plan that maximizing use of tax deferrals, keeps costs at a minimum, and manages risks such as disability and lawsuits.
When it comes to investing, the less you pay, the more you keep.
With historically high market valuations and very low interest rates contributing to lower future investment returns, wise investors do all they can to control investing costs. One of the easiest ways to do this is to avoid using a financial advisor who charges you an annual advisory fee based on a percentage of the assets you place with them to manage. The good news is that you now have a viable alternative to high-cost advisors that requires no sacrifice in the level of service received, Clarity Capital Advisors.
Flat Fee Wealth Management is Smart
Millions of investors pay more than they should to financial advisors. High-cost financial advisors will normally charge an annual advisory fee of about 1% or a tiered percentage based on the value of the assets you place with the advisor to manage. This is commonly referred to as an asset-based fee.
A 1% fee might seem trivial, but at $1 million, 1% would be $10,000/year, $2 million $20,000/year, and so on. Financial technology has drastically reduced the cost for advisors to provide wealth management services to their clients. Therefore, it simply should not cost $20,000 to manage an investment portfolio of that size. Think about it: As your investment accounts increase over time simply due to market appreciation, so does the advisor's asset-based fee. Asset-based advisors may use the phrase, "when you do better, we do better" or "we sit on the same side of the table as our clients" to claim unity with you. Our interpretation of this phrase is, "the more you make, the more THEY take, year after year" and it really doesn't matter which side of the table an advisor sits on.
Low, Fixed Advisory Fees
Retirement Planning and Investment Management
Recognizing the runaway nature of asset-based percentage fees and hourly fees, our wealth advisors are compensated based on a fixed (flat) annual fee. Clarity's low fees are based on our firm's costs and reasonable compensation for a credentialed financial professional. No sales commissions, no hidden fees, just complete clarity.
We don't nickel and dime you for our services
At Clarity, we don't have separate fees for investment management and financial planning services. Our fixed advisory fees include ongoing investment management and wealth planning services such as retirement planning, college planning, charitable giving strategies, and generating an income in retirement. Fees normally range between $625 to $3,250 per quarter or $2,500 to $13,000 per year and cover all accounts within a client's household. The considerations in determining your initial fixed annual advisory fee may include the number of accounts and account values. Advisory fees are capped at $20,000 per year and are billed quarterly in arrears to your designated accounts.
Our Flat Fees and Their AUM Percentage Equivalent
Why Clarity Capital Advisors?
Our firm is founded on the principle of smart investing with low flat-fees, low cost investments, and full transparency without compromising personalized service from a team of credentialed, fee-only wealth advisors. Our clients keep more of their money invested, instead of paying out high advisory fees or having their investment returns reduced by high expense ratio mutual funds.
We are a Fee-Only, Independent Registered Investment Advisor (RIA) Firm - No Sales Commissions or Hidden Fees.
A Team of Credentialed, Fiduciary Wealth Advisors with over 50 Years of Combined Experience.
Credentials include Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), Chartered Retirement Planning Counselor (CRPC®). Accredited Investment Fiduciary (AIF®), and Fellow of the Society of Actuaries (FSA®).
Our Services include Investment Management, Financial Planning including Retirement Planning, and 401(k) and 403(b) Plans.
Our Investment Philosophy is Based on Nobel Prize Winning Academic Research, not Speculation.
Our Fixed Fee Pricing Structure is Simple and Straightforward.
We Take a Passive Approach to Investment Management that Reduces Overall Costs and thus Increases Returns.
We Partner with Your Existing Estate Planning and Tax Professionals to Complete Your Wealth Team.
Fixed-Fee Fiduciary Wealth Services
There is no need to sacrifice the level of service you are accustomed to:
- A Dedicated Team of Credentialed (CFP, CFA) Financial Professionals with over 50 years of combined financial experience.
- Quarterly Client Review - In person or online.
- Financial Planning - Retirement Planning, Transitioning into Retirement, Retirement Income Strategies, Estate Planning Review, and Charitable Giving Strategies
- Roth IRA Conversions, IRA Required Minimum Distributions (RMDs)
- 401(k) Retirement Distributions and Direct Transfers/IRA Rollovers
- Investment/Asset Management - Investment Planning
- Custom Investment Portfolio Options
- Low-Cost, Tax-Efficient Investment Portfolios
- Quarterly Portfolio Monitoring - We review your accounts every quarter to make sure your allocation is consistent with your goals.
- Portfolio Rebalancing and Tax Loss Harvesting, as needed
- Quarterly Portfolio Performance Reporting and Gain/Loss Accounting
- Account Setup and Transfer Documents
- 401k and 403b Employer Retirement Plan Investment Review and Asset Allocation
- 529 College Savings Plans and Donor Advised Funds
- Annual Risk Assessment and Wealth Plan Overview - To keep you on track.
- Client Portal - View your accounts, performance, and custodian statements in one place.
- We work together with your financial professionals - Accountants and estate planning attorneys.
You don't need to sell your existing investments to work with us.
Many financial advisors require their new clients to liquidate their existing investments to move into the advisor's recommended investments and asset allocation. We recognize that while this may be convenient for the advisor, it may be expensive from a tax standpoint for investors with significant embedded capital gains. Assuming your investments align with your financial goals, ask us how we can manage and monitor your existing investments for one annual fixed fee (billed quarterly to your account(s) in arrears). Our clients' assets are custodied with TD Ameritrade Institutional. If you do not have an existing relationship with TD Ameritrade Insitutional, we will provide you with signature ready account and transfer forms to simplify the process of transferring your investments without having to sell them.
Is your financial advisor a Fiduciary to you? Maybe, but most likely not.
It begins with the type of financial firm you are working with.
Fee-Only Firm. Also known as Sales Commission-Free firms. These firms do not accept any fees, compensation or commissions based on product or investment sales. They are compensated solely by their clients. Clarity Capital Advisors is a Fee-Only firm. We are true fiduciaries to our clients.
Fee-Based Firm. Also known as a Sales Commission and Fee firm. Such firms charge advisory fees for some services, while their advisors earn additional commissions, 12b-1 fees, or receive "kickbacks" from investment product providers such as mutual fund and annuity companies for investments they sell to their clients. The fee-based structure is riddled with conflicts of interest for investors, as some advisors will not fully disclose when they are earning additional commissions. If an advisor receives compensation from someone other than their client, they are not acting in a fiduciary capacity.
Keep more of your money working for you with our low fixed fees.
We work with clients nationwide.
Please take a moment to contact us for a complimentary, no-obligation consultation and a second opinion.