Millennial Financial Advisor James Osborne And His Non-traditional (But Successful) Way Of Running His Practice by Steve Sanduski, MBA, CFP®, Belay Advisor
H/T Abnormal Returns
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ILLENNIAL FINANCIAL ADVISOR JAMES OSBORNE STARTED OUT ON A TRADITIONAL FINANCIAL ADVISOR TRACK then he became disillusioned.
He noticed there wasn’t much difference in the services he provided to a client with a 3 or 4 million dollar portfolio versus a client with a half million dollar portfolio. As he told me, “It started to feel that the fee structure was not based on what we did for people or the value proposition, but was really based on ability to pay.”
So what did he do?
He left the traditional RIA, started his own firm, and began charging a flat fee of $4,500 per year, which includes financial planning and investment management services.
Today, after just three years, James has about $100 million in AUM, roughly 50 clients, and is earning a nice living running a lifestyle practice in the foothills of the Colorado Rockies.
If you do the math, you’ll notice his fee comes out to about 25 basis points on $100 million in assets. That’s equal to what the average robo advisor charges but in James’ case–it also includes personal financial planning directly with him.
He’s beating the robo advisors at their own game!
His pricing structure is just one of the many ways he’s reimagining the financial services industry. We discuss them all in the podcast.
(Download the transcript here.)
This is the second in my podcast series on how millennial financial advisors are shaking up the industry. Be sure to checkout the first one with Brittney Castro–including her finance rap video.
See full article here.