Frequently Asked Questions
Pricing & Engagement
How do you get paid for your services?
Our advisory accounts are fee-only solutions where our fees are charged as a percentage of the assets we manage. We do not receive any commissions or other forms of payment on those accounts. We do provide insurance, annuity, and investment solutions that follow a commission structure for those that need or want those solutions.
Is a fee-only structure better than a commission structure?
A fee-only structure minimizes conflicts of interest and requires a fiduciary duty (act in the clients' best interest). However, be careful not to believe everything you read online about how fee-only is "always better." Certain insurance and annuity products are only available via commission structure. Advisors that aren't properly licensed to sell these may not consider them as options for your family even if they maybe are the right solution. Additionally, upfront commissions can trigger more cost upfront. However, higher fee-only schedules might mean that your total cost will be more over the long-term.
How much do you charge for fee-only accounts?
While we provide exceptions for unique cases and family situations, our fee-only schedule generally applies as follows:
| Household Assets From | To | Standard Annual Fee |
|---|---|---|
| $0 | $999,999 | 1.00% |
| $1,000,000 | $2,999,999 | 0.85% |
| $3,000,000 | $4,999,999 | 0.80% |
| $5,000,000 | $7,999,999 | 0.75% |
| $8,000,000 | $11,999,999 | 0.65% |
| $12,000,000 | $19,999,999 | 0.60% |
| $20,000,000 | $49,999,999 | 0.50% |
| $50,000,000 | $99,999,999 | 0.35% |
| $100,000,000 | and up | 0.25% |
This is a cliff schedule: once your household reaches a tier, that tier's fee % applies to all of your assets from the first dollar, not just the portion above the tier threshold.
How do these fees compare to the rest of the industry?
The 2024 Kitces report found that the average blended fees in our industry were at these levels:
- 1% fee on assets under $2 million
- 0.85% fee on assets under $5 million
- 0.75% fee on assets under $10 million
For fee-only accounts, what is a cliff schedule and why does it matter?
McCabe & Associates uses a cliff schedule for fee-only accounts. A cliff schedule means that all assets are billed at the same % when you reach the next tier. A graduated schedule means that an advisor still bills the higher fee % on lower tiers even when you reach the next level. The 2024 Kitces report showed that 58% of firms are still using a graduated fee schedule vs. a cliff fee schedule.
Services & Results
How are your Virtual Family Office (VFO) services different from "comprehensive" or "holistic" wealth management?
When we say comprehensive, we not only mean it, we explain it. Our Interactive Wealth Bridge goes into detail on the 52 specific services we provide within 12 main financial planning areas. We also differentiate by coordinating with outside professionals more closely than your typical firm. Finally, we assist with more specialized services like property & casualty insurance and cybersecurity issues that other firms do not cover.
What services does McCabe & Associates offer?
Our direct or in-house services include retirement planning, education planning, generational planning, charitable planning, investment research, investment risk management, portfolio monitoring, and plan organization. Our third-party or liaison services include tax planning, estate planning, insurance planning, and cybersecurity.
Which services are the best fit for business owners?
We find that estate planning, tax planning, insurance planning, and cybersecurity are the primary areas which business owners should focus.
Which services are the best fit for widows?
We find that generational planning, estate planning, full plan organization, and charitable planning are the primary areas which widows should focus.
Which services are the best fit for High-net-worth and ultra-high-net-worth families?
We find that retirement planning, education planning, portfolio monitoring, and generational planning are the primary areas on which HNW and UHNW families should focus.
How do you measure success?
We feel that you've made a breakthrough when you no longer feel like the middleperson between your professionals. Additionally, when you no longer find yourself hearing about something at a social gathering and thinking, "My advisor has never talked to me about that," you can be confident that we are proactively covering all your bases.
Virtual Family Office & Onboarding
Why should I use a virtual family office vs. a traditional family office?
A Virtual Family Office (VFO) focuses on having the advisor as the primary coordinator with outsourced experts. This provides depth of service while giving families flexibility to move pieces in and out of their network as their life evolves.
Why should I use a virtual family office vs. a typical financial advisory firm?
Financial advisory firms still primarily focus on investment management and possibly tax/estate planning. Virtual family offices focus on the enhanced needs that UHNW families require including property & casualty insurance, cybersecurity, and bill pay/lifestyle services.
How do you communicate?
We recognize that different generations have different communication preferences. This is why we can communicate via phone, email, and even compliance supervised text message. For meetings, we offer the ability to meet in person at our Mokena office or virtually via Teams or Zoom.
What does onboarding look like?
The first meeting is typically introductory so we can get to know you, you can get to know how we operate, and we can determine which advisor is best suited for your needs. Between meetings 1 & 2, we will collect and analyze any documents pertinent to your financial situation. Meeting 2 will be a discussion of your current financial plan and the items that need to be addressed to improve it. Between meetings 2 & 3, we will collect personal information needed to open your accounts. Meeting 3 will be a walkthrough of the documents needed to onboard you as a client.
Partnerships
Do you partner with my outside professionals?
Yes, we work closely with accountants, attorneys, insurance professionals, bankers, mortgage brokers, administrative assistants, and even cybersecurity specialists.
How are these partnerships different from other financial advisory firms?
We proactively provide information to your outside professionals throughout the year that creates better planning and makes your life easier. We also attend meetings with these other professionals to be your second set of eyes and ears. Finally, we use planning technology to review the work your other professionals are doing.
Do you refer clients to outside professionals?
Yes, our "liaison services" were built on the premise that we cannot be an expert in everything. We have vetted and can recommend outside accountants, attorneys, insurance professionals, cybersecurity solutions, and administrative assistants.
Do you receive compensation for these referrals?
No, our advisors do not receive compensation for sending our clients to third-party professionals. We simply prefer working with people that are extremely responsive, competent, and attentive to our clients' needs.