At Invest Blue, we are passionate about helping people realise their goals and dreams so that they can live their best possible life. In some instances, there is an immediate need that has to be addressed in a tight time frame, for example, the purchase of a house. For most, however, to truly build a financial plan that delivers on your best life, our approach is holistic and takes some time.
So how does it all work?
Each time we get together we will work through 5 key areas:
1. What is important to you?
2. Your details
3. How we can help
4. Next steps
5. Summary and actions
Depending on where you are at in the journey, one or two of these steps will be emphasised, but we always go through this agenda. The main reason for this is to ensure we are always focused on the things that are most important to you. If we are going to help you live YOUR best life, we always need to start here.
As a new client, there are a series of meeting steps we go through to develop your financial plans. This includes:
1. Understand: getting to know each other and understanding what is most important to you
2. Challenge: challenging you to live your best possible life
3. Empower: showing you how your best life is possible
4. Support: providing the support you need to confidently get on with your financial plans
Our existing clients meet with their adviser formally, generally once a year. If your situation is more complex or you are going through a change of situation, you may meet more than that. These meetings are called Progress meetings because we want to ensure you are living your best possible life and progressing towards your goals and dreams.
Once we’ve worked with you to understand your dreams and goals, and the ways in which we can support you to meet your objectives, we will provide you with our recommendation as to how frequently we should meet to track the progression of your goals and adjust for changes as they arise.
The complexity of your situation and your desire to meet to discuss your financial goals will be factored in determining how often we come together to undertake a formal review. Generally, we like to meet with you at least once per year.
When you first meet with an adviser, there are upfront fees charged to do the initial work and get your financial plans built and implemented. These fees range from $3,000 to $10,000.
As an ongoing client, there is a base amount we charge to cover working with a Financial Adviser or Advisers and the broader team that supports them.
This price ranges from $1,200 to $6,600 per year. We have three ongoing support packages based on complexity. These packages are not selected by you – they will be determined by your situation and preferences. These are as follows:
|This is an entry level package that suits clients who have relatively simple financial affairs and less than $500,000 to invest. Often our families in this package are just starting out on their financial journey or are later in their retirement years. This package includes one formal meeting with your adviser per year.
|Our standard package suits the majority of our families that we work with. You may have a slightly more complex financial situation, multiple goals and a combined wealth of more than $500,000 to be managed. This package includes one formal meeting with your adviser per year.
|Our exceed package suits our families with more complex situations and needs who, due to that complexity, need to check-in with their adviser more frequently.
Your Adviser will recommend the most suitable ongoing package for your based on the complexity of your situation and the amount of support you require.
Additionally, if you undertake one of our active Wealth Management solutions, you will be charged a fee based on the amount you have invested. This means that when you undertake an active Wealth Management solution with us, we also charge a percentage-based fee that is applied to the balance of your investment. The more you have invested, the lower the percentage applied; these fees range from 0.80% to 0.65%.
Foundation: Passive or Active
|Where you want a financial adviser to review your financial situation and help you plan for your future, but want your Wealth Management solution to be held outside of that arrangement utilising a set and forget Strategic Asset Allocation approach, managed in a single fund, that can be either Passive (Foundation) or Active (Comprehensive). This suits if you are a DIY investor or have another investment arrangement that you are already happy with. It also suits those that are cost conscious and/or who do not see the benefit of having an Adviser actively involved in co-ordinating the management of their portfolio. It would also suit those who do not philosophically believe or don’t accept that Additional Risk and Return benefits over and above the market can be achieved via an Active, Tactical an or Dynamic Approach.
|Where you want to work with a financial adviser to review your financial situation and help plan for your future and our Wealth Management solution suits your needs. This suits you if you can see the benefits outlined in this document around transparency, High quality research, a more defined approach to risk and return, would like to take a Tactical and Dynamic approach to Asset Allocation, managed by a 3rd party Investment manager to enhance efficiency, monitored by an adviser.
Part of dynamic, if you choose to terminate our services, we will provide a final piece of advice at no cost to move to a more appropriate portfolio.
|Where you want a financial adviser to review your financial situation and help you plan for your future, and build a Wealth Management solution in a bespoke fashion, tailored only for you with no consideration of cost. You are interested in some or All of the benefits outlined in this document and would like to define the elements you are interested in with your adviser and then engage your adviser to work with a research specialist to create a highly tailored and bespoke portfolio for you. Because this requires bespoke research and support, the annual fee is significantly higher and would typically suit a sophisticated investor, someone with investible Assets over $2m or someone who is not interested in the efficiency and cost savings of an all in one solution
Part of Bespoke, if you choose to terminate our services, we will provide a final piece of advice at no cost to move to a more appropriate portfolio.
Before work commences, you will be told what fees we will apply to your situation and quoted in dollar terms. Each year we will review and discuss with you your support needs, determine appropriate fees and provide you with a quote in your Annual Advice Agreement.
Your ‘package’ is determined by the complexity of your situation, the amount you have invested & how often you want to meet your adviser.
Your ‘portfolio solution’ is determined by the level of investment advice you want to participate in.
|Foundation: Passive or Active|
|Annual Advice Fee||$2,400||$3,600||$6,600|
|Annual Portfolio Management fee (billed monthly)||0||0||0|
|Annual Advice Fee||$1,200||$2,400||$3,600|
|Annual Portfolio Management fee
|Annual Advice Fee||$2,400||$3,600||$4,800|
|Annual Portfolio Management fee
|Offsets for commission income|
|Figures are excl. GST|
*Discounts may apply for large Investment amounts over $1,500,000.
Bev and John Smith want to receive full advice and have their wealth managed under the Invest Blue solution. They are in their 30’s with a relatively simple situation. They also have a home loan which they’d like to refinance and need their personal insurance updated. They would suit our Enhance package with a Dynamic portfolio wealth solution where they have $200,000 to invest. They would be charged $1200 plus 0.80% * $200,000 = $1,600, less $300 for lending and $300 for insurance commissions earned = $1200+1600-300-300= $2,200.
Mary Jones is a Professional in her late 50’s who wants comprehensive advice, including Wealth Management and advice regarding her Self-Managed Super Fund. Mary’s situation is quite complex; she would also like to refinance her home loan but does not need new personal insurance. She would also like to meet with her adviser twice a year to stay on top of things. She would suit our Exceed package with a Dynamic portfolio wealth solution. She would be charged $3,600 plus 0.65% of her $600,000 investment portfolio plus $750 for her basic SMSF portfolio. She would also receive a $300 offset for her lending commissions. Her fee would be$3,600+3,900+750-300=$7,950.