SPP Featured in Investment News

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Excited to see that our conflict free model is gaining some national recognition.  Thought you might enjoy the article below:

At this firm, flat fees are about offering conflict-free advice

At Boston firm Single Point Partners, adviser Seth Corkin says clients don’t have to worry about what’s motivating advisers’ recommendations

By Jeff Benjamin   |  June 9, 2018 – 6:00 am EST

At Single Point Partners in Boston, charging a flat fee is all about offering conflict-free advice.

“We don’t want clients wondering what might be motivating an adviser’s decisions,” said Seth Corkin, an adviser at the firm. “We believe this fee model increases transparency and trust, as clients don’t have to wonder what’s in it for my adviser when they’re making high-stakes decisions such as rolling over a 401(k) or deciding how to fund a new home purchase.”

Under this model, clients lay everything out on the table to determine a net worth on which they will be charged a flat fee that applies to all the services provided.

(More: Why the AUM fee model is so dominant)

The annual fees start at $7,500 for households with up to $2 million in net worth and climb to $75,000 for households worth more than $20 million.

The fees are clearly stated on the advisory firm’s website, but Mr. Corkin admits “there are always nuances and extenuating circumstances.”

For instance, he said, if the value of a client’s primary residence “pushes you into the next tier of fees, we would probably discount that.”

Having worked at firms that charge clients based on assets under management, Mr. Corkin prefers the flat fee based on total net worth as the “least conflicted” pricing model.

“There’s such a conflict in a strict AUM model,” he said. “There’s a constant conflict in the background to get assets into a client’s portfolio, which might mean rolling over a 401(k) plan into an IRA or encouraging a client to sell a concentrated stock portfolio.”

Another advantage that Mr. Corkin sees in avoiding fees based on the size of a client’s investment portfolio is the ability to work with people who don’t yet have large portfolios.

“We have one client who is a young partner at a law firm, who makes $1 million a year but has lots of student loan debt,” Mr. Corkin said. “Our fees for him are not predicated on an asset base.”

 

By | 2018-06-12T20:54:06+00:00 June 12th, 2018|Categories: Personal CFO, Single Point of View|Tags: |0 Comments

About the Author:

Shaun Erickson
My clients utilize me as a partner to help them feel confident in the decisions they make in life. An ideal client for me is someone who is looking for advice beyond the allocation and management of their liquid investment portfolio. As a finance major at Bentley College I began to build skills that allow me to help my clients understand the financial impact of their decisions. For 11 years at Baystate Financial, starting in 2001, I developed an understanding of the practice of financial planning. In 2012, I was driven to found Single Point to build a firm that was focused on the agenda of my clients. The name of our company was born from the idea of being a "single point of contact" for our clients. I recognize that I do not have all of the answers, therefore, we have built our business around a great network of experts and resources for our clients. We place an important focus on researching, vetting, and collaborating with various professionals and services for our clients. When I don't have the answer, I pride myself on knowing the right questions to ask, and who to ask them of. As an active member of Financial Planning Associations of MA, I am involved with their pro-bono programs with Dana Farber Cancer Institute and The Midas Collaborative. My clients are spread across the country, but I live in Boston with my wife Alicia and our three children.

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