Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Selection of Others Advisors
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
Available Fee Structures
- Hourly
- Fixed Fees (Other than subscription)
Arbor Wealth Advisors LLC Overview
Arbor Wealth Advisors LLC is a Registered Investment Advisory firm that has been providing investment advice since 2013. This Troy, Michigan-based company is committed to a fee-only fee arrangement, ensuring that they are working in the best interest of their clients. They offer a range of services that cater to individual investors and small business owners alike, including financial planning and portfolio management. Their investment advice-only approach ensures that the firm does not sell financial products, providing an objective advice for their clients. Interestingly, Arbor Wealth Advisors LLC provides clients with access to other professional advisors. The team takes a collaborative approach to helping clients achieve their financial goals, including selecting other advisors, such as accountants and attorneys, where necessary. With this approach, clients have the full spectrum of options available to them to ensure that they are receiving the highest level of professional guidance. Overall, Arbor Wealth Advisors LLC has quickly established itself as a leading investment advisory firm in Michigan. Their focus on fee-only arrangements and investment advice-only approach underscores their commitment to transparency and serving their clients' best interests. This means that clients can trust that the advice and investment options they receive from Arbor Wealth Advisors LLC are unbiased, and aligns with their unique financial situation and goals.
At ARBOR WEALTH ADVISORS LLC, the team of experienced financial advisors cater to a diverse range of clientele. The firm serves individuals, including retirees, newly-married couples, and young professionals, to name a few. Additionally, the firm has a significant focus on high net worth individuals who require customized investment strategies to manage their wealth effectively. ARBOR WEALTH ADVISORS LLC is committed to providing sound financial advice to all its clients, regardless of their financial background or objectives. When it comes to fee structures, ARBOR WEALTH ADVISORS LLC offers hourly and fixed fees, depending on the services provided. Hourly rates are charged for one-off consultations or for projects with a set duration. This pricing structure ensures that the client only pays for services used, resulting in complete transparency and control over costs. On the other hand, fixed fees are generally charged for ongoing advisory services, such as portfolio management and financial planning. These fees are determined based on the level of complexity and the scope of services provided. Overall, ARBOR WEALTH ADVISORS LLC provides clear and flexible fee structures that cater to the needs and budgets of all its clients.
Typical Clients, Fee Structures & Investment Minimum
The Part 2 Brochure for Arbor Wealth Advisors LLC states that they generally do not require a minimum account size, but they do typically impose a minimum annual fee for investment management services. It is important to note that a minimum account size of $500,000 is required for fixed income portfolio management services specifically. The brochure also states that fees and minimum account sizes may be negotiable in certain circumstances.
How This Office Can Help Troy, MI Residents
Arbor Wealth Advisors is a financial planning firm dedicated to helping clients in Troy, MI, achieve their financial goals. The team at Arbor Wealth Advisors understands that each client has unique financial needs, and as such, their services are tailored to meet those individual needs. For instance, Troy, MI, residents who need help with retirement planning can turn to Arbor Wealth Advisors. The firm's experienced advisors work with clients to define their retirement goals and develop a strategy to achieve those goals. They can help set up retirement accounts, manage investments, and provide guidance on the best practices for tax-efficient withdrawals. Similarly, Arbor Wealth Advisors can assist Troy, MI, residents who are looking to manage their wealth. With an increasing number of entrepreneurs and business owners in the city, there is a growing need for professional wealth management advice. Arbor Wealth Advisors can help these clients understand their cash flows and assets more efficiently, allowing them to make smart decisions about their finances. They provide personalized advice on investment strategies, retirement planning, and estate planning, among other services. Overall, Arbor Wealth Advisors is a great resource for Troy, MI, residents who are looking to achieve financial security and build a successful future.
Services Offered by Arbor Wealth Advisors LLC
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Arbor Wealth Advisors LLC most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Unavailable
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Subscription (Newsletter or Periodical)
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Arbor Wealth Advisors LLC is registered to service clients in the following states:
- Florida
- Michigan
- Texas
Disciplinary History
Arbor Wealth Advisors LLC does not have any disclosures. Please visit it's Form ADV for more details.