Client Profile: Small Business Contractor
Tremendous revenue growth; $3m headed to $5m in 12 months. Finances in disarray – where is the money, what did you net last year? Client needs a financial overhaul: full tax review, better bookkeeping, segregation of personal and business assets, introduction of financial discipline to the business and a personal savings plan. Based on current progress, many more successes are coming for this client.
What the first six months looked like:
Business owners have the most to gain or lose regarding the management of their finances. They have tremendous flexibility and tax planning advantages compared to W2 employees. Missing opportunities in your business structure, tax management, use of real estate, retirement plan, and other critical elements can end up being very costly. Navigating the options available to a business owner requires a “best practices” team effort.
Western Level Advisors helps people manage the pathway to achieve best practices for their individual situations. Whether you are early in your career or near the end, WLA has the expertise to help business owners optimize their financial planning. The firm maintains a strong network of CPAs and Trust/Estate attorneys and will help you maintain the best team that fits your needs. For this particular client profile, the option to fund the SEP IRA also significantly reduced their taxable liability for 2022…a win win.
How much do WLA’s services cost?
For the above client example, the relationship has evolved into two distinct agreements: a Business Planning Agreement with the client’s business and an Investment Management Agreement with the individual.
Business planning and other project-based fees are generally $250 an hour. To start a new relationship, WLA will draft a project list and estimate the hours required per line item for client approval. Importantly, the firm will NOT exceed the estimated hours without client consent.
For the investment management portion, WLA’s annual investment management fee schedule begins at 0.90% (https://westernlevel.com/fees). For this client example, a management fee has not yet been incurred because the assets are sitting in a money market fund. The client is on the verge of some very important decisions regarding a real estate investment and still needs to fund the SEP IRA.
It is rare for a client to require two agreements. However, starting an advisory relationship on an hourly basis can be of mutual interest for a variety of prospective clients.
The Independent RIA Solution:
I can’t imagine working with this client example and only supporting the investment management portion of the relationship; it isn’t what was initially needed. I’m also not running this firm to simply steer everyone into a stocks and bonds portfolio like every other financial advisor – WLA is capable of a lot more.
Focus on your strengths –> running your business.
Pursue best practices –> compound the good things.
Best,
Jon
About Western Level
Western Level Advisors LLC is an independent Registered Investment Advisor. The firm provides investment management and long-term financial planning services for individuals. All services are provided on a fiduciary and fee-only basis. Western Level’s only purpose is to establish a clear pathway for each client to help them manage and compound their wealth.
Jon Fritzinger
Founder / CEO
Western Level Advisors LLC
westernlevel.com
hello@westernlevel.com
Disclosures: Western Level Advisors LLC ("WLA") is a registered investment advisor The information provided in this commentary is intended to be informative and not intended to be advice relative to any investment or portfolio offered through WLA. The views expressed in this commentary reflect the opinion of the author based on data available as of the date this commentary was written and is subject to change without notice. This commentary is not a complete analysis of any sector, industry or security. This commentary is not intended to be a recommendation to buy or sell any investment. Please contact WLA with any questions regarding your accounts. The information provided in this commentary is not a solicitation for the investment management or other services offered by WLA. References incorporated into the commentary from third party sources are as of the date specified and are believed to be reliable. WLA is not responsible for errors in the third party data. Source information is provided under each chart. Additional disclosures are available at www.westernlevel.com.