FAQs

1. What does "Fee-Only" mean and why should that be important to me?

True fee-only service is rare.  Less than 5% of the so-called planners in the United States are strictly Fee-Only.  What fee-only means to you is that FEE-ONLY INVESTMENT ADVISORS, LLC only receives compensation from the client, hence, we have the client’s aspirations as the most important driving force in the work we do. We do not accept sales commissions or payments from third parties. Because we do not sell financial products such as investments and insurance, there are no third-party relationships or outside influences to color our thinking and financial recommendations. In contrast, the lion share of an insurance agent’s or stockbroker’s compensation comes from a third party with whom they hold a contractual obligation to place the company’s interest before that of the client. For more information on Fee-Only financial planning, visit www.NAPFA.org.

2. Please tell me about the investment planning process.

Planning is a multi-step, ongoing process that provides you with two important benefits: (1) A critical review of your current financial situation, and (2) a set of recommendations or actions to follow to achieve your family goals in a manner appropriate for you. During the initial steps we explore the “numbers of your life,” the assets, liabilities, etc. Many money managers do not bother with this because they do not need to know this information to sell you a product. We instead are building a future, but need to understand where you are now to create efficient and effective solutions to use your resources to get to where you want to go and when you want to get there.

We explore the quality of life you seek and find ways to achieve that considering your present situation, tax issues, and risks you may encounter. You must know where you are and where you want to be to make any sensible decisions on how to invest.

3. Who can benefit most from your services?

Important attributes of clients for whom we work most successfully are: motivated to have a plan of action, value close family relationships; value and seek personal advice from competent advisors; can delegate to or collaborate with advisors; would rather play, relax, or work than spend precious time becoming a “do-it-yourselfer.” Finally, we help those who seek an ongoing, trusting relationship with a investment advisor.

4. What training and experience do you have?

Please read Who We Are, a biographical sketch of the President, Steven Erickson. Of special pride is that less than ½ of 1% of all financial planners/advisors in the United States are qualified to hold the NAPFA-Registered Financial Advisor designation that Steven Erickson holds. You’ll find his credentials are impressive and unparalleled in Missouri.  Why would you want to work with anyone less qualified?

5. What is unique about FEE-ONLY INVESTMENT ADVISORS, LLC?

Three words sum up the difference: fidelity, competency, caring. Fidelity: As a fee-only, registered investment advisor, our first responsibility is to the client.  Period.  Our relationship is akin to that of a doctor or lawyer to their client. There is no conflict of interest. Conflicts of interest exist with all stockbrokers and insurance agents.  It is inherent in their businesses – buyer beware – because they work for and receive their livelihood from a third party.  In contrast, you are the boss. Also, since we are not beholden to another party, we are free to review and present to you a much wider array of solutions.  This is in sharp contrast to the normal stockbroker or agent as they can only offer what they sell. As you might expect there is a whole universe of possibilities left in the dark because of their conflict of interests, but at FEE-ONLY INVESTMENT ADVISORS, LLC we can bring them in the open and see if they match your needs.  Competency:  Please review Steven Erickson’s biographical sketch in this website. His qualifications are unmatched in Missouri. Not mentioned in the biographical sketch is that Steve was formerly a stockbroker and insurance agent and is intimately familiar with how that system does or does not work for the benefit of the client.  Caring: You are not a number on a ledger or person to be sold a product.  You become an important part of our organization.  We take the time to get to know you to better match your desires, dreams and expectations to solutions. No solution is any good if you neither understand it nor will follow it. We are designed to serve clients for the long haul.

6. What are the primary services of FEE-ONLY INVESTMENT ADVISORS, LLC?

We manage investments whether in retirement plans at work, IRAs or ordinary accounts. We focus on designing and implementing solutions to permit clients to retire in a manner and at a time of their choosing. Also, we assist with non-investment issues that relate to financial matters in a client's life, but the two primary goals are to manage their money prudently and establish and maintain a means for the client to live a fulfilling and financially worry-free retirement as is possible.

7. Bottom-line, what are you looking for in a client?

The single most important traits you look for is whether they have a genuine, ongoing desire to plan, organize and take action for the betterment of their family.

8. We are doing well, but we do not seem to have enough time to figure out whether what we’re doing is right or how we should proceed from here. Can you help us?

Yes. Whether you need relatively simple management or more sophisticated financial planning or advice, you will find our services appealing and beneficial. Steven Erickson's credentials are incredible and he would be on your side to help you craft a prudent, doable plan for you and your family. Take the time to read his brief biography (pdf of Steve Erickson’s bio) in this website. If you have a desire to simplify your financial affairs, one of our ongoing client programs may be right for you and we will discuss these options at your initial get acquainted meeting.  If you are looking for a professional review or a second opinion to ensure you are on track, we can provide that, too.

9. Do you have frequent meetings?

Unlike a salesperson, we are duty bound to keep in touch. How else will we know if something important has happened in your life or your goals have changed such that we need to invest your money differently? We require annual meetings and encourage semi-annual meetings to track client progress and to identify adjustments that may be needed. It is naive to think that once an investment plan is written and put into place that it needs no monitoring or updating.  We monitor accounts regularly and make adjustments as needed. But we do not do a lot of trading. Preferably we “measure thrice, cut once,” to avoid frequent changes.

10. Tell me about your investment philosophy.

At FEE-ONLY INVESTMENT ADVISORS, LLC we believe in applying fundamental, prudent investment principles to achieve goals expressed in the planning process. The design of the portfolio must take into account the client's financial objectives, tolerance for risk, needs for current income or liquidity, and special considerations such as income and estate taxes. While no one can predict the future, we do endeavor to apply prudent policies to achieve the desired result. Often you need to balance the desires and dreams expressed in the plan versus the risks inherent in investing to achieve those aspirations by a particular deadline. We’ll review with you the pros and cons of investing to achieve your goals.  The client must participate in the portfolio planning process for the investment program to have lasting value.  

11. How do you price your ongoing services?

There are two major service programs from which to choose and they’ll be discussed before entering into any engagement with FEE-ONLY INVESTMENT ADVISORS, LLC.  Which is correct for you will depend upon the service desired. One track is the Wealthy Horizon program that provides ongoing service on a flat-fee, retainer basis. Within this program all plans are updated annually, tax returns scrutinized, investments are managed, and most ongoing service is at no additional charge. Another common track is an investment management track wherein FEE-ONLY INVESTMENT ADVISORS, LLC manages your portfolio for a fee based upon the assets under management and then provides additional service beyond the scope of the investment on an hourly, as-needed basis. Free consultation hours are provided based upon the amount of assets under management.

12. How much will my plan cost?

Planning fees generally are complexity dependent. A good estimate is provided before we begin work and generally does not change much unless there has been a substantial change in the request. Work is billed on an hour basis.

13. Are your fees tax deductible?

Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. It is subject to a 2% floor of the adjusted gross income on a personal tax return.

14. What if we need to obtain financial products, how will I be able to do that?

We do not sell products, but can evaluate them. If you need to obtain a product or need professional service such as from an estate planning attorney, we can offer a referral. Our preference is to work with providers you already have, but if you have none, then we can offer a referral. Again, we get no compensation for the referral. Our goal is to keep you moving toward your goals and sometimes that means working with a team.

15. Once my financial plan is completed, will our relationship end?

We hope not as planning is an ongoing process and not a one-time event.  However, depending on our respective desires, the engagement of services may end, but the majority of our clients choose some sort of ongoing program. We offer ongoing services, periodic reviews and day-to-day consultation as requested or needed.

16. What do I bring to the first meeting?

Complete and bring the First Meeting Questionnaire, your questions, and your concerns.  That’s it!

17. How can I get started? The first step is an initial inquiry from you.

Call us at (573) 874-3888 (Columbia) or email us at office@fee-only-investment-advisors.com. We offer a no-cost, no-obligation “Get Acquainted Meeting,” in our office. Our First Meeting, and other appointments, are scheduled based on availability during regular business hours of 9-5, Monday through Friday. Should you decide to engage FEE-ONLY INVESTMENT ADVISORS, LLC, we will discuss which of our services and client tracks are appropriate for you. Move with Confidence Toward Your Goals!