The Four Sources of My Income

I’d like to begin this blog by recapping my progress to this point. My business income will come from four primary sources.

First will be financial planning fees. These fees, on a per client basis, will range from a few thousand dollars to several thousand dollars per year. It will not only cover the initial planning phase but will allow for ongoing advice throughout the course of the year.

Another source will be from the management of client assets. Currently I have one fee schedule but will create an additional schedule soon. I’ll use one if the extent of my service is portfolio management and the other will be for clients who have also hired me to be their planner. In this case, the asset fee will be slightly reduced since I am also collecting financial planning fees.

A third area will include insurance, mainly life and long term care.

The final area is a slight departure from the traditional wealth management arena. Here’s one example. I am currently in discussions with a large engineering company. They produce estimates for their clients on projects that may be $10 million, $20 million, even as much as $100 million. The estimates project the total cost of the project and are calculated on a linear basis using static assumptions. I will add Monte Carlo simulation to their quotes, giving their clients a better and more realistic understanding of the projection.