retirement planning denver

Confused About Investing? Fee-Only Planners Can Offer Clarity 

For many aspiring investors, the question of where to begin looms large. From stocks to bonds, mutual funds, ETFs, or the burgeoning field of alternatives, it’s no surprise that many people feel overwhelmed or paralyzed by the options.   

The good news is that if you have $500,000 or more of investable assets, you are to hire a professional to guide you down the proper path, depending on your objectives.  All investments offer some potential for returns, some greater than others, and there are varying risk factors or possible tax implications to be aware of. Even if you consider yourself financially savvy, having a trusted financial partner can pay big dividends.   

This is where a fee-only financial advisor can step in. By offering a sense of greater confidence and bringing more focus to your plan, they should increase the probability of success. Managing your wealth is more than watching investments grow. It’s about aligning various financial strategies with your current circumstances and future goals, ensuring that your wealth serves a broader purpose rather than just numbers on a screen or statement.  

Your goals may vary or sometimes seem to be competing—whether that’s funding your retirement, supporting causes you care about, or building your family’s financial future through buying a home or setting aside money for a loved one’s education. The challenge is losing sight of the bigger picture, which is easy without a structured financial plan. Breakwater Capital offers holistic wealth management services for successful individuals and their families. 

Our experienced team of CFPs® provides personalized strategies to help you build, preserve, and distribute your wealth. Focusing on your unique goals, we guide you through the complexities of financial decisions, ensuring thoughtful and knowledgeable support at every step. In this blog, we’ll explore how fiduciary, fee-only financial planning can meaningfully impact your wealth management experience.

Understanding How Financial Planners and Advisors Are Compensated 

Before going further, we want to address a topic many couples don’t take the time to understand and many fail to address when interviewing prospective advisors: How is your financial planner or advisor being compensated for his or her knowledge, advice, and services? 

Also, as the critical mass of your wealth increases, and more often than not, the associated costs rise, too, the complexities of managing your money become more apparent.  

This means transparent compensation arrangements are critically important for protecting and growing your assets. When choosing a fee-only planner, you want to be assured of one thing: the recommendations you receive are in your best interest and free from outside pressures and potential conflicts. Unlike fee-based or commission-based advisors, a fee-only planner is paid only by you, which enables this professional to provide comprehensive advice while mitigating conflicts of interest. 

The following is a breakdown of the primary compensation models for financial advisors: 

  • Fee-Only Financial Planners: These advisors charge either a flat fee or a percentage of assets under management (AUM). They do not receive commissions for selling financial products (investment or insurance), thereby ensuring that the advice you receive is always based on what is best for you and your family.
  • Fee-Based Financial Planners: These advisors can charge fees and also be compensated with commissions from third parties (mutual funds, annuities). While they may offer solid financial advice, this opens the door for potential conflicts of interest.
  • Commission-Only Advisors: These professionals earn income through commissions from selling insurance products, mutual funds, or other investments. While this model may work for investors with small asset amounts, the advice they provide may be influenced by the financial benefits they stand to gain from the products they sell. 

Fiduciary Responsibility: Why It Matters As Your Wealth Grows

When working with a financial advisor, one of the most important considerations is whether their licensing or registration makes them a financial fiduciary at all times.  At many of the large investment firms, you may hear the phrase “dually registered,” which means the individual you are speaking with may act as either a broker or an adviser. You can appreciate when that inherent conflict of being able to act as either can impair decision-making, especially when it comes to things like compensation.   

A fiduciary is legally bound to put your financial interests first, ensuring that their advice aligns with your current requirements and future goals. It is important to note that not all financial advisors are fiduciaries, so it’s crucial to ask this question when selecting someone to help manage your wealth. This empowers you to make informed decisions about your financial future. This question is important enough that you may want a written response. When your selection decision impacts your future financial security, a documented response is more reliable than a verbal response. 

Why is fiduciary responsibility so crucial as your wealth increases? 

  • As your wealth grows, the stakes increase; you often have more to lose and less time to accumulate/recover. A fiduciary advisor provides recommendations that are not influenced by commissions or third parties, ensuring your financial decisions are based solely on what is best for you and your family. Results matter, not transactions, for the sake of transactions.
  • As mentioned earlier, growing your wealth generally ushers in increased complexity and opportunity—whether it is related to tax strategies, estate planning, or risk management. You may now be able to invest in illiquid investments only available to accredited investors or qualified purchasers; who better to ask than your trusted advisor?  A fiduciary will take a holistic view, helping you navigate financial planning challenges while staying consistent with your long-term goals. 
  • Because fiduciaries are held to the highest ethical standards in the financial planning industry, they must provide financial advice that is based solely on your best interests.

Our Insight: As a fee-only, fiduciary financial planner, Breakwater Capital Group offers transparent, comprehensive guidance that aligns with your goals. We help you navigate wealth management with confidence as your assets grow. 

Building a Customized Financial Plan for You and Your Goals

Many successful individuals and families who seek out wealth management experience in our key markets, Denver, the suburbs of Boston, or Northern New Jersey, do so because they recognize the need for a professional to help decipher all that is out there when it comes to their finances.  

Rather than feel like a number, as is often the case at bulge bracket firms, they seek a real personal connection and a plan truly tailored to their unique circumstances. Getting that support during your working years, transition years, and retirement years is truly invaluable, and his continuity is bound to positively impact your quality of life during your later years. 

At Breakwater Capital Group, we’ll work with you to create lasting strategies to grow, enjoy,  and then pass on that wealth to the next generation of family members or to charitable organizations that you care so deeply about. 

Our Insight: As a Denver wealth management firm, we’ve worked with many clients who want their assets to have a lasting impact on their families and their communities. At Breakwater Capital Group, we’ll work with you to create lasting strategies to pass wealth to the next generation of family members or to charitable organizations in ways that help to minimize taxes and preserve your legacy long after you and your spouse are gone.

The Emotional Aspect of Wealth: Focusing on What Matters Most 

At Breakwater Capital Group, we know that financial decisions aren’t just about the numbers. Money, after all, should be a means to an end; at least, that is typically what we see in working with our clients, especially in their early years. Only later do we see those relationships.  

Successful professionals and business owners—like so many of our clients—want their wealth to be more than a figurative ATM machine. They want to protect their families, build a solid foundation for future generations, and use their resources to make a difference in the world.  Delegating authority should also help alleviate the stress of managing your wealth and focus on what truly matters: your family, career, interests, and the causes you care about. 

Whether you’re in Massachusetts, Colorado, or New Jersey, Breakwater Capital Group offers comprehensive financial planning and investment services tailored to your personal needs. With over 5 decades of combined experience our team of fee-only financial planners is dedicated to helping you be the best version of you. 

Why Choose Breakwater Capital Group? 

Breakwater Capital Group is dedicated to helping families with $500K or more of investable assets achieve their financial goals. With a proven track record of success, our passion for helping our clients is unrivaled.   

We are proud to serve clients in New Jersey, Colorado, and Massachusetts, among other states, and we provide personalized advice and support every step of the way. 

Our financial advisors offer transparent, objective advice and are committed to always putting your financial interests first. If you’re ready to take control of your financial future with a trusted partner, reach out to Breakwater Capital Group.

Choosing the right advisor

The views expressed represent the opinions of Breakwater Capital Group as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.

The views expressed represent the opinions of Breakwater Capital Group as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Adviser Public Disclosure website, www.adviserinfo.sec.gov. Past performance is not a guarantee of future results

Breakwater Team

At Breakwater Capital, we work with families across the United States, providing each client with a personalized experience tailored to their current circumstances, future goals, and timelines.