General Questions
Do you charge an AUM fee?
No.
We are a fee-only advisory firm offering hourly and monthly retainer services. This allows you to maintain control of your accounts and allows us to provide straightforward advice that is in your best interest without being influenced by conflicts of interest inherent in other fee models like AUM.
Do you work with clients remotely?
Yes! While we are headquartered in North Carolina, our clients have come from all over the United States. In fact we have worked with clients in over 30 different states by utilizing technology including document storage and sharing, financial planning tools and software, and communication across email, phone, and video conferencing.
While we default to remote meetings and videoconferencing with all of our clients, we also have options to meet in person if you are in the Winston-Salem area.
Can we meet in person for the presentation?
We default to remote meetings and videoconferencing in order to run the different retirement simulations and live dashboard within the meeting. We also have options to meet in person if you are in the Winston-Salem, NC area. Contact your advisor if you are interested in setting up an in person meeting.
Are you paid a commission?
No.
The elimination of conflicts of interest is an important goal of ours and is the foundation of our advisory business. Neither Scholar as a company or any of our advisors receives any compensation for the recommendation of securities or other investment products. Any recommendation made is based solely on your needs and not swayed by a third party paycheck.
Learn more about our decision to be a fee only advisory firm.
Do you make trades or manage accounts for clients?
No.
We not have custody or discretionary authority over your account. We create financial plans, strategies, and an action list for you to follow to implement the plan.
A major component of our firm's mission is to empower. We want to give our clients the confidence to manage their personal finances.
What does “fiduciary” mean?
Fiduciary Duty of an investment advisor means that the advisor is required to work in the best interest of their clients. Scholar Financial Advising is an independent fee-only financial advisor with a fiduciary duty to all of our clients.
Are you a CFP Professional?
This is a common question we are asked when meeting people for the first time about their finances. Education is very important to Scholar Financial Advising, both in the education of our advisors and the quality of financial education we provide to our clients.
We require a very high level of financial education for our advisors. At a minimum, all of our advisors must hold a Ph.D.
Stephan Shipe has a Ph.D. in Finance, is a CFP Professional, and a CFA Charterholder.
Mark Johnson has a Ph.D. in Financial Economics, a MS in Financial Economics, and a MS in Finance.
Kyre Lahtinen has a Ph.D. in Finance and a MS in Finance.
Deon Strickland has a Ph.D. in Finance and an MBA
Chris Lawrey has a Ph.D. in Finance and an MBA
Since these designations can start sounding like alphabet soup, here are some additional resources related to the CFP Certification and CFA Charter.
What is the “CFA” designation?
Chartered Financial Analyst. The CFA designation requires four years of professional experience, over 1,000 hours of study, and a rigorous three exam program. The process is highly selective. In addition, CFA
Below are some resources if you are interested in learning more about the designation and the importance of working with a CFA
Do I have to live in North Carolina?
No.
This firm was created with remote financial advising in mind and we have advised clients in over 25 states. Many years of planning went into searching for the best way to provide financial advice through a completely remote client/advisor relationship. We use tools like video conferencing and encrypted online data collection to help provide a productive and safe advising environment. However, if you are ever in town, we are always open to grabbing some coffee or lunch to catch up in person.
Do you have a secure method for sharing sensitive information?
We use an encrypted Box folder for document collection and sharing. We do not recommend sharing sensitive documents through email.
Do you work with clients who are already retired?
Yes.
We regularly work with retired (or close to retired) clients and advise on Social Security, Medicare, Roth conversions, cash flow planning, gifting, and RMDs.
Hourly Based Financial Planning
Who is the “typical” client for this service?
Our hourly clients are DIY investors who realize that the complexity of their finances is increasing. However, they don’t want to hand over their investments to an advisory firm or pay an Assets Under Management (AUM) fee.
They are typically looking for someone to pull all the financial pieces together for them and come up with a strategy and financial plan that they can execute with updates and check-in meetings annually.
For clients needing ongoing financial advisory services (without AUM), we have our Signature Client Program that offers family office like services to clients for a monthly retainer fee.
Can we meet for one hour to answer a few of my questions?
In order for advice to be tailored to your unique financial situation, we cannot support one-off discussions without performing the proper amount of due diligence. Providing accurate advice is paramount to building strong client-advisor relationships and typically it’s only given within the context of a comprehensive financial plan so that we would have the full picture.
How long will it take for my plan to be created?
Our goal for plan completion is 30-45 days which is a joint effort by both the client through providing necessary information and the advisor creating the plan.
What does the end result look like and will I have access to the materials after we meet?
Our deliverables include the presentation, a written list of recommendations (and a spreadsheet if needed), net worth statement, retirement simulations, live dashboard used within the meeting, and advice on implementation, if needed.
What happens after we meet? When do we meet again?
We check in with our clients throughout the year and are available to answer questions related to the plan or assist with its implementation. We also schedule annual renewal meetings which are a mix of updating previous items, rebalancing portfolios, and adjusting for new information (due to life and/or market changes).
We focus on building the client/advisor relationship so that if and when more complex issues arise you have someone to call who has already been working with you on the bigger picture and can see how all of the moving parts work together.
For clients who have ongoing planning needs, we recommend exploring our Signature Client Program.
Do you require clients to have a minimum amount of invested assets?
No.
We charge for financial advice based on complexity, not portfolio size. In fact, many of our clients are high earners without much currently saved for retirement. We are advising on topics like:
- Balancing a variety of retirement account types
- Tax considerations for the present and strategizing for the future
- Cash deployment from lumpy income
- Establishing savings rates for retirement
- Savings for major non-retirement goals (college savings, debt repayment, real estate purchase)
- Rebalancing, Asset Allocation, and Asset Location
Do you assist with implementation of the plan if I need help?
We prioritize building strong long-term relationships with our clients and that means being available to provide advice on the implementation of the plan. We are available to answer any questions after the presentation meeting over the phone, by email, or videoconferencing if necessary.
Does the plan include tax advice or analysis?
There is a difference between tax advice and tax planning. We are not allowed to provide tax advice, only tax planning. Tax advice typically involves seeking guidance or recommendations from a tax professional (CPA) on specific tax-related issues, such as deductions, credits, or compliance. Tax planning is a more comprehensive and proactive approach that involves strategizing and organizing financial affairs throughout the year to optimize tax outcomes. While tax advice provides insights on individual decisions and tax law interpretation, tax planning aims to create a long-term strategy to minimize tax liability and maximize financial efficiency (i.e. Roth vs. Traditional contributions, tax loss harvesting, Roth conversions, asset location strategies to reduce taxes now and in the future, and RSU impact). We can refer you to a CPA for tax advice if needed.
Will you bill me for follow up questions or emails after our presentation meeting?
Additional work after the initial plan will be billed at our firm hourly rate and invoiced monthly in arrears.
How far into the future will the plan be for and how many hours are expected for reviews? Is an annual review required?
The comprehensive plans that we build will cover you for about a year. While annual reviews are not required, we recommend updating the net worth statements, checking in on rebalancing the portfolio, addressing some minor questions that have come up throughout the year, and adjusting for new information (from you or the market).
Once the initial work is done, reviews typically require less time. 70-80% of the initial plan cost is a good estimate for the number of hours. If there have been major changes throughout the year or more complex matters to discuss then the annual review price would increase accordingly.