Tiered Financial Planning
Tiered Financial Planning with Lighthouse Financial Group
The determination of Financial Planning levels and associated fees is based on individual client needs and circumstances, and may range from a very simple Net Worth Statement upon collection of personal financial information to a far more complex analysis in conjunction with the client’s financial team, inclusive of tax management strategies with a CPA, educational funding strategies with a college planning specialist, and estate planning needs with an Attorney. Lighthouse does not make determinations as to the complexity of the financial plan based solely upon client assets under management by the Firm nor the client’s personal net worth, and instead considers the amount of information required to deliver the financial plan to the client, as well as the amount of time it takes administratively (data collection and entry), in research, and the writing and delivery of the plan.
All financial planning fees may be paid in advance or in arrears, but no later than upon the presentation of the financial plan or commencement of the planning engagement for the client and under no circumstances will the client pay over $500 more than six months in advance of receipt of the financial plan deliverable, as required under the laws of the State of Illinois. Clients are typically billed on a quarterly basis with the initial deliverable being provided within ninety (90) days of engagement. Plan delivery hinges somewhat on the client’s timely return of key information, and as such, reminders and forms for data submission are provided to each client within two weeks prior to their quarterly review meeting (or periodic meeting, based upon the Tiered plan engagement schedule), unless they have scheduled the meeting with less than two weeks, in which case the information is sent upon confirmation of the meeting being scheduled.
Outlined below are the Tiered levels of Financial Planning agreements with Lighthouse Financial Group. Each includes a range of services and an outline of expectations. Whether or not a client elects to complete certain aspects of the plan does not affect the Tiered pricing schedule; if a more appropriate plan level exists than that initially selected by the client, the advisor will discuss those services more in depth with the client and suggest a different plan Tier.
Time to Plan – for the Educated Planner
This plan is designed for Juniors and Seniors in High School and young people in college or other institutions of higher learning. Lighthouse Financial Group feels that if young people delay learning about how to plan for their future, it will quickly become too late to have done so, and those young folks may spend much of their adult life living in various stages of financial crisis. Like the Young Planner, the Educated Planner is also encouraged to participate in planning for their future. This level of plan focuses more on planning for college (including preparing a robust college resume), living within a budget, implementation of savings and/or investment strategies, and setting proper expectations with respect to obtaining and paying off student loans.
The Basic Plan
As a general rule, this Plan is suggested to existing clients of Lighthouse Financial Group who already utilize asset management services of the Firm and who are seeking to add on a Basic Plan Assessment to their relationship. This is recommended for clients not presently in a major life transition (i.e., getting married, divorcing, starting a family, or approaching retirement), and referral incentives are not offered at this Plan level.
The Tier 1 Plan
The Tier 1 Plan is designed for individuals and families interested in guidance through what may be their initial planning relationship. This is recommended for clients who may be planning for a major life transition (i.e., getting married, starting a family, thinking of putting children through school, getting divorced, or approaching retirement), and referral incentives are offered at this Plan level. This is the lowest plan level for which a client will qualify if they have no asset management relationship with the firm, unless they are a Young Planner or Educated Planner client.
The Tier 2 Plan
The Tier 2 Plan is designed for individuals and families interested in a more expansive planning relationship. This is recommended for clients who have more complex financial situations, multiple entities or who may be planning for a major life transition (i.e., getting married, starting a family, thinking of putting children through school, getting divorced, starting a new business venture, moving out of state, facing significant medical procedures, or approaching retirement) and are seeking a higher level of engagement. Referral incentives are offered at this Plan level.
The Tier 3 Plan
The Tier 3 Plan is designed for individuals and families with very complex lives. This is recommended for clients with small businesses, real estate holdings, and complex estate planning needs across generations. Referral incentives are offered at this Plan level.
The services outlined above are also available as individual services, outside of a financial planning engagement. For an outline of costs associated with Tiered Financial Planning and additional coaching services, please reach out to us through the Contact Us page.