For clients who are seeking comprehensive financial planning guidance, there are two basic pricing models: Asset-Based fees and Fee-Only pricing (flat-fee and subscription). For clients who are seeking financial planning advice paired with ongoing portfolio management, we offer the tiered asset-based fee structure outlined below.
The table below represents Financial Planning Hawaii’s standard tiered fee schedule for clients who enlist us to provide financial planning services under an asset-based advisory agreement.
Assets Under Mgmt*
*Annual minimum platform fee = $150
** Fee levels are assessed based upon the total assets of all accounts in the billing household.
This tiered fee structure is applied only to assets that we directly manage on clients' behalf and includes ongoing comprehensive financial planning and investment advisory guidance. It also includes ongoing access to eMoney, the secure online application that serves as our financial planning organizational platform. Under the asset-based compensation agreement, we will serve in a fiduciary capacity, but we do not accept discretionary trading authority, as we want our clients to be actively engaged with us in the portfolio management and investment selection process. For more specific information on the scope of financial planning and portfolio management services provided, please read our Delivery of Services Agreement.
The investment management platform for our asset-based clients is provided through J.W. Cole Advisors, an SEC-registered investment advisory firm. Clients have their choice of having their accounts held with National Financial Services (NFS) (a Fidelity Investments company) or with TD Ameritrade. Required regulatory disclosure documents pertaining to Financial Planning Hawaii’s asset-based service model are provided below.
- J.W. Cole Advisors Form CRS (Customer Relationship Summary)
- J.W. Cole Advisors SEC Form ADV Part 2A (Plain English Disclosure)
- J.W.Cole Advisors, Inc. SEC Form ADV Part 2B - John H. Robinson (3/1/2022)
- J.W.Cole Advisors, Inc. Business Continuity Policy
- J.W. Cole Advisors, Inc. Cybersecurity Platform
Fee-Only Financial Planning
Fee-only planning is available to Financial Planning Hawaii clients seeking comprehensive financial planning guidance, including portfolio management and investment guidance, but who prefer to self-manage and self-implement their investment portfolios. The fee for this service is negotiated with each client in advance and is dependent upon the scope of work. This compensation model is typically often suited for consumers who are seeking a one-time comprehensive financial planning review or second opinion. It may also be a good fit for consumers who do not have sufficient assets available to enlist or services for ongoing portfolio management. Flat-fee planning is provided through Financial Planning Hawaii, Inc., a state of Hawaii Registered Investment Adviser. Consumers who are interested in enlisting our services for Fee-Only planning are encouraged to visit our sister website: Fee-Only Planning Hawaii.
NOTE: FPH does NOT offer hourly billing for financial planning as we believe this pricing model puts the adviser's interests too much in conflict with the client's.
Required regulatory disclosure documents pertaining to Financial Planning Hawaii’s fee-only service model are provided below:
- FPH Fee-Only Financial Planning Client Services Agreement (July 2021)
- Financial Planning DBA Fee-Only Planning Hawaii SEC Form ADV 2A & 2B (Feb 2022)
- FPH Registered Investment Advisor Code of Ethics
- FPH Registered Investment Advisor Business Continuity Plan (July 2021)
Securities Brokerage and Insurance Services
Despite a broad consumer and financial service industry shift toward fee-only planning and asset-based management over the past two decades, traditional commission-based brokerage accounts and insurance products still fill a need for certain consumer circumstances and interests. These situations typically fall outside the scope of our Financial Planning and Delivery of Services agreements. Examples include corporate cash management and 401(k) plan servicing. Brokerage accounts and services are available through J.W. Cole Financial, Inc., a FINRA member Broker-Dealer, with National Financial Services, LLC (a Fidelity Investments Company) serving as the custodian for all client assets.
Insurance products, including fixed annuity contracts and life, disability, and long term care insurance, are often only available to consumers through commission-based insurance agents/producers. Financial Planning Hawaii advisors are all insurance-licensed and have access to such products through relationships with certain independent insurance agencies. Because these products are not considered securities, the regulation of the sales and marketing of these products is outside the scope of the SEC's and FINRA's regulatory reach and instead falls to the Insurance Commissioner's office of the state in which the client resides.
Financial Planning Hawaii is keenly aware that the sale of commission-based brokerage and insurance products presents a potential conflict of interest to consumers who may already be paying asset-based or negotiated flat fees for financial planning guidance. As such, Financial Planning Hawaii generally eschews product sales to financial planning clients. However, in such occasional instances whereby commission-based brokerage and/or insurance transactions may be necessary and desired by the client, clear and unambiguous disclosure of the conflict will be made in advance of any product sales recommendations. Further, in the event that product commissions are opaque to the consumer, the amount of the sales commission will be disclosed to the client in advance of the recommendation.
- J.W. Cole Financial Form CRS (Customer Relationship Summary)
- J.W. Cole Financial Regulation Best Interest Disclosure Supplement