How to Hire Northwest Wealth Advisors, LLC.

Northwest Wealth Advisors, LLC. (NWWA) is a fee-based independent registered investment advisory firm.
That meansthat we are independent of other investment firms; we are not employees of broker dealers or other investment companies.

Advisor Relationship
Northwest Wealth Advisors, LLC (NWWA) is a fee-based independent registered investment advisory firm. That means that we are independent of other investment firms; we are not employees of broker dealers or other investment companies.  Despite that independence, however, NWWA has access to the resources that large financial firms can offer.  If client circumstances arise, NWWA is able to pick and choose among those resources that offer the best possible solutions to meet the needs of the client, without the attached strings that a non-independent firm may bring.  In simplest terms, NWWA is able to secure the best options to offer to its clients without the potential conflicts of interest that non-independence may bring.

Advisor Compensation
A fee-based advisor means the advisor is compensated for its services directly from its clients.  In this arrangement, the advisor does not receive commissions for the sale of investment products to clients.  If the investment product has some component of insurance attached to it such as an annuity, then it may be that the advisor will receive a commission on the sale of that product to a client.  Typically, a fee-based advisor is paid a fee by the client for the discretionary management of a client’s investment portfolio.  That fee, along with any other fees that the client will pay, is disclosed at the beginning of the client/advisor relationship.  It is important to note that fee-based is not the same as fee-only.  In the latter arrangement, the advisor is compensated for its services by either a stated flat fee or an hourly rate that applies to the scope of work the advisor is performing for the client.  In both cases, the fees are disclosed up front, and the client is able to determine which compensation system best fits their requirements.   In the case of a fee-based or fee-only relationship, it is incumbent upon the advisor to clearly and succinctly explain to the client how they are compensated for their services.   Clients of NWWA have the flexibility of retaining their services in several different ways.

3 Ways to Hire Northwest Wealth Advisors, LLC.

Being an independent investment advisor enables NWWA to build its fee structure in a way that provides flexibility and simplicity to both NWWA and its clients.  If a client wishes to enter into an advisory relationship with NWWA, they have three options to choose from.

Investment Managed Clients
We believe that a satisfied client is an educated client. We strive to keep clients informed about their investments, and updated on the advancement toward their financial goals. We believe the more you understand your investments, the more comfortable you will be and the more trust you will have in us. We provide ongoing seminars, workshops, newsletters and individual client sessions to keep clients informed.

Clients may choose to retain the services of Northwest Wealth Advisors whereby their portfolios are managed on a proactive, discretionary basis.  In this relationship, the client’s risk profile is determined using an industry standard questionnaire.  From that questionnaire, the client’s investable assets are allocated to one of five model portfolios and from there NWWA will proactively manage the client’s portfolio.  This portfolio only includes those assets that NWWA has in its custody, meaning it does not include outside assets such as the client’s 401k, other employer sponsored portfolios or portfolios held at other firms.  In making the decision about the client’s investment strategy and mix within their model portfolio, those outside assets will be taken into consideration.

With this relationship, the client will receive customized appraisal and performance reports on a monthly basis and a face-to-face portfolio review and analysis with the client at least once a year.  Basic planning and financial advising beyond the client’s portfolio is also available with this relationship, but it is limited to brief, basic questions and analysis.  Should the Investment Managed Client wish a more in-depth financial analysis, they may retain these services on an hourly basis as explained below.

Wealth Managed Clients
Wealth Managed Clients with Northwest Wealth Advisors receive all of the benefits which the Investment Managed Clients receive, and in addition receive a comprehensive Wealth Plan and regular reviews.  Depending on the complexity of the client’s financial conditions, this Wealth Plan could encompass cash flow analysis, debt management issues, retirement planning, college planning, insurance planning, basic estate and tax planning, major purchase analysis, etc.  Essentially any question about money and finances falls under the Wealth Planning Client relationship.

At the beginning of this relationship, the client and advisor go through a comprehensive fact finding exercise to determine the client’s financial condition and help to uncover short and long term goals.  This information becomes the basis for the Wealth Plan which is presented to the client at the beginning of this relationship.  In addition, this plan is updated on at least an annual basis and more frequently should the client request the opportunity to revisit the Wealth Plan.  This is typical when the client experiences a life event such as retirement, death or disability of a family member or other such events.

With this relationship, there is a $250,000 portfolio minimum and the client pays a one-time planning fee of $2,000 with half of the fee paid at the beginning of the engagement and the other half when the initial plan is presented.  From that point forward, no other planning fees are assessed to the client for this service.

Hourly Basis
If the client wishes to hire NWWA on an hourly basis, they may do so.  With this fee arrangement, the client and advisor will determine the scope of the project with clearly defined outcomes and goals that are mutually agreeable.  The scope of this project can involve a few hours of research and presentation, or it can span several hours of back office effort and face to face discussions and presentations.  Once the scope of the project is defined, the advisor will present a firm quote for the cost of these services and then present it to the client.  If the client is agreeable to the scope and cost of the project, then a timeline is set and the advisor begins to work on the deliverables.  At the beginning of the engagement, 50% of the agreed upon fee is due with the balance due when the deliverables are met to the client’s satisfaction.  The total fee, once agreed upon, is non-refundable.

Occasionally, clients request that the advisor manage the client’s portfolio on an hourly basis in a proactive and discretionary basis.  Unfortunately, this is one scenario in which an hourly rate can not be used.  An hourly rate in this type of arrangement is difficult to apply and be fair to both the client and the advisor.  For example, if an advisor spends considerable time and effort into researching and selecting a security for inclusion into the fee-based clients’ portfolios, a potential conflict arises.  Should the hourly client  be charged for the full time involved in the research that ultimately benefits all of the advisor’s clients or should they be charged for just a portion of the research?  Likewise, in some cases the advisory firm may earn its fee by not making a change in a client’s portfolio due to short term macro economic conditions or other circumstances.  In that case, the hourly client will benefit, but how that benefit is priced creates problems.  For that reason, NWWA is not able to manage client portfolios in a discretionary fashion on an hourly basis.  However, should the client engage NWWA for an initial portfolio review, and then a subsequent review in the future with recommended changes to a portfolio, those two engagements would be priced separately.

Northwest Wealth Advisors, LLC strives to provide each potential client with a customized relationship that fits their needs.  It is not uncommon for a client to begin the relationship with NWWA on an hourly basis and as their needs and circumstances become more complex they progress through the Investment Management and ultimately settle in to the Wealth Management relationship.

If you are seeking a flexible, long term relationship with a financial advisor that can grow as your needs change, then consider Northwest Wealth Advisors, Inc.

Address

Northwest Wealth Advisors, LLC
1800 Blankenship Rd., Suite 130
West Linn, OR  97068

Contact Number

Office 503 478-6632
Fax 503 296-5635