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Financial Planning is a dynamic process. Caratel’s fee
structure is designed to encourage regular communication as an integral
component of our relationship. Once the initial fees for
planning services have been paid, Caratel’s minimal on-going fees include all of the
following services at no additional cost:
- Annual Plan Updates
- Annual Portfolio Design Updates
- Quarterly Portfolio Performance & Rebalancing Reports
- Monthly Statements
- Access to Caratel for any of your financial questions
An article in Kiplinger's Personal Finance Magazine
discussed what to look for in a Financial Advisor and what you should expect for
the cost. Although Caratel does not necessarily concur with all statements
contained in the article it does provide independent verification that Caratel's
fees are very inexpensive -- especially when you consider the original,
individualized work-product, the value added and the opportunity cost (not
realized until years later) associated with using a broker whose only interest
is earning a commission
Presented
graphically, you will observe that Caratel's fee structure reflects:
- The detailed analysis and creation of your personalized Financial Plan and
Portfolio Design,
- The presentation of the report, the review and discussion of its contents
and recommendations, and
- The implementation and monitoring of your financial situation.
In General...
Caratel stresses the relationship aspect of
Financial Planning. Our goal is to cater to your individual
financial needs and concerns. Boilerplate solutions are never
used. Every report you receive from Caratel is an original and
reflects each client's unique situation.
As a true Fee-Only planning firm,
Caratel’s only source of compensation comes from you, the client. We do not
accept hard-dollar (cash) or soft-dollar (research, "educational"
cruises, event tickets) compensation for any product or service recommended. You
are, therefore, assured that no ulterior motives are at work when recommendations are
made.
All services require a 50% deposit against the total estimated fee.
All fees quoted are exclusive of any expenses incurred.
Any balance outstanding is due at the time the bill is submitted. This
usually occurs upon presentation of the requisite report.
Fees and expenses incurred as a result of the use of
other professionals (accountants, attorneys, etc.) are not
included in Caratel's fees.
All of Caratel’s work products are original and unique to the
client. We do not use "boilerplate" or computer generated solutions to planning
or investment issues. We truly are relationship driven.
- The Initial Consultation
The Initial Consultation allows you to ask, and obtain answers to,
general questions regarding your planning and investment concerns.
Caratel will discuss how each of your concerns would be addressed within a
Financial Plan and Portfolio Design Report. At the conclusion of this
meeting, you will have a complete understanding of the scope and cost of the
services to be provided by Caratel.
The Financial Plan and Portfolio Design
Your Financial Plan serves as the “roadmap” for all future decisions
including the design of your portfolio. Therefore, this is one of the
most important steps in the financial planning process.
Detailed
information will be obtained concerning your current financial situation and
your goals. Documents that may be needed include copies of insurance
policies, investment statements, annuity contracts, wills, trusts, business
contracts, etc. In addition, information concerning unique concerns (illnesses, inheritances, disabilities, hobbies, charitable interests)
will be obtained. We will spend time discussing your views about
finance and what your experience and background are in this regard. We
will spend significant time– in person, on the phone, via E-mail or
traditional correspondence – so that a complete and thorough understanding
of your situation is obtained. All of this information will be
carefully reviewed by Caratel and will be used as a basis for your Financial
Plan.
In conjunction with the
Financial Plan, the results of your Risk Tolerance Survey will be used in an
analysis of your current investments and their applicability to your
Financial Plan. A detailed risk/reward analysis will be completed.
This report analyzes your existing portfolio in relation to your financial
goals and objectives. Specific modifications, if required, to your
existing investments will be made. Similar to the Financial Plan, the
portfolio is designed individually for each client. Standardized,
“one size fits all” portfolios are never used.
Upon completion you will be
presented with your Financial Plan and Portfolio Design Report. This
report outlines your current situation and makes several recommendations to
place you on the road to achieving your stated goals and objectives.
Caratel will review the major points with you and then encourage you to
review the plan at your leisure. A second meeting will then be
scheduled to discuss any questions you may have
Fees: Based upon a proprietary formula that
reflects the size and complexity of your unique situation. Again,
based upon Caratel’s experience and our discussion during the Initial
Consultation, Caratel will outline the services to be provided and their
exact cost. For those clients maintaining an Ongoing
Relationship with Caratel this is a one-time fee (i.e., plan implementation,
monitoring and updates are included in the Ongoing Relationship fee).
Implementation and Monitoring
(i.e., Ongoing Relationship)
One of Caratel’s key features
is the relationship established with its clients. This relationship
reflects the importance of implementing and regularly monitoring your
financial situation.
Caratel’s fee structure is
designed to encourage an on-going dialogue. Caratel does not “nickel
and dime” its clients. With an Ongoing Relationship you
have unlimited access to a financial expert who is fully aware of your
unique financial situation and will provide you with the unbiased advice you
seek. In addition to regular communication, you receive a detailed
portfolio analysis quarterly. This report discusses your portfolio’s
performance in relation to its design. These reviews also allow any
necessary modifications to be made because of changes in your circumstances,
the market, or the specific investments that constitute your portfolio.
Lastly, your Financial Plan and Portfolio are reviewed at least once a year
(more often if warranted).
This level of contact –
unique to Caratel - ensures continued compliance with your financial goals
and conformity of your portfolio to its original design
You will receive monthly
portfolio statements from Caratel. Additionally, the account’s
custodian sends monthly statements and trade confirmations.
The fees associated with
maintaining a relationship with Caratel are the only ongoing fees Caratel
charges
- Fees: A sliding scale based upon a percentage of the value of
assets monitored by Caratel. The fee is quoted on an annual basis
but billed monthly in arrears. The fee adjusts for all capital
flows. This fee begins upon implementation of any component of the
Financial Plan and/or Portfolio Design Report
Financial Consulting
It is understood that you may have a unique situation that is not
suited to the comprehensive nature of Caratel’s services but does require
the services of a financial expert. Caratel is available on a
case-by-case basis to meet your unique needs for financial expertise.
- Fees: $250 per hour plus expenses
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