Below, Eric Figueroa, CFP®, Founding Wealth Manager of Hesperian Wealth, answers some of the most frequently asked questions from prospective clients:
Here is a shocking statistic: According to a survey from consumer research firm J.D. Power:
Only 14% of clients of “full-service” financial advisors reported they received comprehensive financial planning!
I don’t even know how I could properly give you investment advice if I didn’t first deeply understand your complete financial situation and know the what and when you’re saving for. And there are so many noninvestment areas of personal finance that, if optimized, can be hugely impactful. So while I would think offering to advise you on every aspect of your financial life would be commonplace, it’s, in fact, rare.
In addition to a focus on comprehensive financial planning, I think the combination of the following additional attributes differentiates my practice from other financial planners or advisors:
- Virtual appointments
- Weekend and evening availability
- No investment minimum
- Transparent fees and flexible services
- Personal, high-touch access to a dedicated, credentialed wealth manager
- Special planning expertise in education planning (saving for college, financial aid, college shopping, student loans, etc.)
- Special expertise in the planning issues of working professionals, public sector employees, small business owners, and retirees
- Special expertise in certain diversifying alternative investments
- And special expertise in impact investing and values-based investing
I founded Hesperian Wealth in 2022 after working in the wealth management industry for close to a decade. Previously, I worked for a large investment advisor in the San Francisco Bay Area. In my role there, I served under their team of wealth managers and also managed their professional investment research service, where I helped financial advisors across the country build portfolios for their clients. During that time, I saw how rewarding it could be to help others achieve their financial goals. There is so much financial complexity in today’s world, but also so much misinformation. I want to be my clients’ trusted source for financial advice and guidance.
You can learn more about me on the More About Eric page.
While we all have thought about our future at some point, you may have never written it all down or prioritized your goals. So I first help you document your vision for the future—what I call a Dream Statement—and build a snapshot of your finances you can view in one place compared with it being spread across dozens of files and multiple accounts at different institutions.
Even when you do have a clear idea of what you want to achieve, it can still be hard to get started on a course of action alone. My clear planning process, something you don’t have to design or manage yourself, can provide the necessary motivating structure. It’s nice to have an objective voice to provide a second opinion on your big financial decisions.
Finally, working with a wealth manager can save you a lot of time, anxiety, and potentially money. So many areas of personal finance are excessively complex. As a credentialed financial professional, I possess the deep knowledge of tax rules, laws, best practices, and cash flow planning to cut through all that and exploit the planning opportunities available to you (or avoid the pitfalls!).
Without me though? You’d have to take on all this on top of your day job, enjoying life, and pursuing your own passions, whereas this is what I do all day! I specialize in this area. I say outsource some of your worry to me.
As your portfolio manager, I’m doing all this behind the scenes (and more):
- Regularly monitoring your portfolio
- Rebalancing your portfolio’s allocations when they get out of whack
- Conducting year-round tax-smart trading
- Optimizing the location of investments in different account types based on your goals and tax situation
- Changing your portfolio’s risk level over time based on your unique cash flow needs
- Changing your allocation tactically based on Hesperian’s proprietary investment framework
- Researching new alternative investment options and monitoring currently recommended ones
- Transitioning legacy assets over time in a tax-aware way (if applicable)
- Providing additional portfolio personalization in pursuit of impact goals or to reflect your values or faith (if desired)
Unless you’re passionate about investing and managing your accounts, my recommendation is to delegate this technical work to me and spend your time the way you want to.
During the Initial Planning phase, you’ll definitely hear from me a lot! Between a Kickoff Meeting and multiple Exploratory Workshops, we’ll have a minimum of three hours together (more if there are complex planning areas to cover). And I’ll probably ask follow-up questions (and answer yours) by email or phone throughout the process.
Then each quarter during your Ongoing Planning subscription, we’ll usually touch base at least once about something. We plan for Action Items year-round, so in any one quarter, we’ll be working on them together. It could be as simple as sending you a reminder to increase your saving rate to something more involved like taking an hour to analyze a home purchase.
We’ll always meet formally at least annually (your hour-long Annual Check-In), but in the case of a major life event, we may want to meet sooner to assess its impact on your plan.
I’m always available by phone to chat or by email if you have a written question. Importantly, when you call, email, or want to meet, you get me. I’m the one crafting your plan, handling your accounts, and working directly with you.
I’ve scheduled the Initial Planning phase to take between five and seven weeks, depending on the complexity of your situation. This usually involves at least three one-hour meetings. But we move at your pace. The timeline proposed on our Process page is just a suggestion.
But a financial plan is never done. It should be a living document that changes over time as you, your goals, and your circumstances change. So financial planning is really a life-long engagement.
As part of your Ongoing Planning subscription, each quarter I’ll monitor your progress toward your goals and help you implement the Action Items we prioritized. Then annually, we’ll meet formally for an hour to check in.
As my client, you’re free to call or email me anytime. I’ve also opened up evening and weekend time slots for virtual meetings. You shouldn’t have to take off work to meet with your financial advisor. I’m here to serve: Let me work around your schedule.
The CERTIFIED FINANCIAL PLANNER®, or CFP®, designation is a highly respected credential in the financial planning and investment management industry. It signifies I have
- earned a bachelor’s or higher degree (in my case, an MBA and a Master’s in International Business);
- completed an approved educational curriculum on financial planning topics and a capstone course;
- worked at least 6,000 hours under a credentialed professional;
- passed a six-hour examination administered by CFP Board, the body that governs the CFP® marks and credential;
- maintained my credential by meeting 30 hours of continuing education every two years, including a 2-hour ethics course; and
- satisfied and committed to CFP Board’s Code of Ethics and Standards of Conduct.
You can learn more about the CFP® credential HERE. And you can review my standing with the CFP Board on their website.
As a CERTIFIED FINANCIAL PLANNER®, I have committed to being a fiduciary, which means I must act in the best interests of my clients, placing them even above my own. Your Client Agreement with me will document my obligation to you.
The term fee-only reflects my commitment to accept compensation only from you, my client. For example, I don’t accept commissions for selling insurance or investment products. That way, when I recommend an insurance policy, an investment, or some course of action, you know it’s solely because I think it’s what’s right for you.
Personal finance is so complicated, it’s critical that I stay at the forefront of my profession. First of all, as a CERTIFIED FINANCIAL PLANNER®, I am required to take 30 hours of continuing education courses every two years, including a 2-hour ethics course. And as a Certified College Financial Consultant, the topic of at least four hours of my continuing education each year must be related to education planning. But I am also a member of the National Association of Personal Financial Advisors (NAPFA), a professional organization that requires 60 hours every two years. In satisfying these requirements, I try to select courses or educational activities that are directly relevant to my current or prospective clients.
I am constantly reading various relevant books (about planning or the investing world) or professional publications. And through various sources, I stay abreast of news items and potential legislation that could impact clients.
As a member of NAPFA and the XY Planning Network (an association of fiduciary advisors that have committed to serving Gen X and Gen Y clients), I have access to forums where planners and advisors help each other, usually on complex or uncommon planning situations. Even when they aren’t relevant at the moment, I usually review them so I can learn the details of edge cases I may encounter in the future. Occasionally, I attend conferences or symposiums to educate myself and learn from other finance professionals.
Finally, I occasionally participate in work-study groups consisting of great advisors, analysts, and investment managers in my personal network. We meet to support each other by sharing planning ideas or investment research. In effect, I am supported by a great network of fellow practitioners.
Yes. Even though I’m based in Folsom, California, near Sacramento, I can work with clients from other states if they’re comfortable working virtually.
In fact, most of my local clients prefer to work with me virtually as well. It’s just so convenient for everyone to avoid driving to and from a physical office.
I’ve found that working with folks using various innovative technologies like virtual meeting apps and a secure file vault has been productive and often more efficient than in-person. For example, I’ve found it much easier to show clients their interactive digital financial plans by sharing screens virtually than in person on a tablet or laptop.
Yes. I truly require no investment minimum.
If you’re early in your saving journey or your wealth is locked up in a business, land, property, or some other illiquid asset, don’t worry. We’ve structured our business to democratize access to planning and investment advice.
In your case, we’d charge flat planning fees based on your unique advice needs, then a traditional asset-based fee to manage your investment portfolio, but only on amounts above $50,000. Until you exceed that threshold you can benefit from our Investment Management service free of charge.
An Initial Financial Plan will cost between $3,000 and $8,000 depending on the complexity of your financial advice needs. Half is due at the signing of your Client Agreement, half is due upon receiving your completed plan.
Your Ongoing Planning subscription begins immediately after the initial planning is complete. It costs between $300 and $1,200 quarterly, again based on complexity.
On our Services & Fees page, there’s a calculator you can use to estimate your fee.
We charge a separate asset-based fee for Investment Management. However, we don’t charge on the first $50,000 of your portfolio because you’re already paying a quarterly planning fee.
Additionally, once your managed assets reach certain levels, your Investment Management fee can offset a portion of your planning fee to align your total fees with the industry average. At your preliminary consultation, which we call a Discovery Meeting, we can commit to a quote based on your situation.
Yes, we usually structure Advanced College Planning as a one-time project, possibly with hourly follow-ups in future years. (Although this kind of planning is typically offered as part of our ongoing comprehensive financial planning and investment management services.) We want to help the college affordability crisis as much as we can. We may be able to cap your fee at 10% of your student’s project Student Aid Index. Contact us for more details.
We can craft initial financial plans as a project-based engagement. While you will not benefit from a continuous relationship with a wealth manager or receive monitoring or implementation assistance, project-based planning could still be appropriate if your financial situation is unlikely to change in the next few years. Fees will be the same as the initial planning fees for our full-service clients ($3,000 to $8,000 depending on complexity).
Keep in mind, though, that the result of such projects will be a snapshot in time. Even when you think your financial situation is stable, in my experience big changes occur more frequently than we think, and usually when we least expect them. Project-based planning also does not include digital access to a financial plan updated in real-time nor continuous access to our client portal/net worth tracker. Any additional implementation assistance or updates after the initial engagement requires a planning subscription or follow-up hourly sessions.
Yes, if you prefer you can engage me on an hourly basis. This work can consist of informal “Ask-Me-Anything” sessions, a more formal financial check-up, or additional advice requests following a previously completed project-based planning engagement. Just note that hourly financial planning is a limited engagement that will not include the delivery of a comprehensive financial plan, although I may be able to provide written reports to help you manage your finances, depending on the predetermined scope. Hourly planning is usually only appropriate when your financial situation is straightforward, or you are just beginning your saving journey but have important questions you’d like to ask a financial advisor on focused areas of your finances. My hourly rate is $250.
We have special expertise in impact investing and values-based investing, which we discuss on our Impact & Values page.
But we also try to extend our clients’ reach or make a positive impact on the world directly in four additional ways:
- By putting our firm’s assets behind letter-writing campaigns related to causes interested clients care about
- By working mostly virtual and maintaining a low carbon footprint (both professionally and personally)
- By providing pro bono advice to underserved communities (currently I volunteer with AdvisersGiveBack and the NAPFA Foundation’s College Affordability Project
- And by donating 10% of our investment management fees to charitable organizations making a difference
I understand how important a decision choosing a wealth manager is. Few other people will know you as well, and even close friends may not be familiar with your finances. And ideally, it’s a choice you make only once.
That’s why I want to give you as much time with me as I can upfront. We’ll want to make sure our personalities match, we get along and like each other, we’re on the same wavelength, and we feel a high level of mutual trust and confidence in each other. These intangibles are essential for future success.
I suggest we start with a free, no-obligation consultation to get acquainted: FIND A TIME TO MEET