AdvicePeriod “Partner Advisor of the Year” (2019)
AdvicePeriod “Planner of the Year” (2018)
AdvicePeriod “Fastest Growing Partner Advisor” (2017)
Todd Butler, CFP® is a Partner Advisor with AdvicePeriod. For more than 20 years he has delivered customized and creative financial strategies and exceptional client service. Todd and his dedicated team work with individuals, families, and same-sex couples. He counts among his loyal clients numerous entrepreneurs, corporate and studio executives, educators, doctors, and attorneys.
Todd, a Partner Advisor, spent eighteen months searching for a firm that aligned with his philosophy about planning and investing. After exhaustive interviewing and fact-finding, he was discouraged to find that almost every firm had the same approach to wealth management; traditional, conservative, and antiquated. It was then that Todd finally discovered the solution he had been looking for- AdvicePeriod.
AdvicePeriod seemed to be at least three to five years ahead of the wealth management industry, it was innovative and technology-driven. So, in 2017, Todd was able to move 100 clients from his previous firm to AdvicePeriod. Further, AdvicePeriod allows him to uphold his fiduciary duty of putting his clients’ interests first. He feels fully supported and benefits from robust resources but ultimately has the freedom to manage his relationships and runs his own business.
Not only did Todd want a firm that was rapidly evolving and changing, he wanted one that aligned with his core beliefs. First, he wanted a firm that believed in passive low-cost index investing, rather than one primarily using an active management strategy. Todd thinks that trying to pick the hottest stock or the hottest sector is counterproductive and results in clients paying more fees and receiving lower returns on their investments. Secondly, he believes that technology is the future of wealth management and a firm that can provide the best available technology will allow advisors to proactively manage a client’s total balance sheet. Lastly, Todd wanted his clients to pay lower total overall costs than they would at a traditional firm. His transition to AdvicePeriod was clearly beneficial for both his clients and him.
While financial advisory work comes with substantial responsibility and stress, AdvicePeriod allows Todd the freedom to live a more balanced life. When he is away from work, Todd enjoys surfing, fishing with his sons, and spending time with his family.
Insight from Todd:
On fixed fees:
The overwhelming majority of advisory firms charge their clients a percentage of the assets they manage which often presents a conflict of interests. Compensation drives behavior in every profession and when you run the typical investment advisory firm where you’re charging a percentage of assets, you may, if you’re not ethical, advise the client to do something that is not in their best interest. When you charge clients fixed or flat fees, you materially reduce those conflicts of interest. Your recommendations are not driven by an increase in compensation, they’re driven by always doing what is right for the client.
An environment where we could see stocks go down 35 to 40 percent is where the benefits of fixed or minimum fees become clear. The average advisor, who does not use fixed or minimum fees, may see their income decline with the market at the worst possible time. In that type of arrangement, you not only suffer the impairment of a drastically reduced income but you also see a significant increase in your workload. It’s a terrible way to run an advisory firm. By having fixed fees that don’t fluctuate with market volatility, you stabilize the firm, you stabilize the revenue and you are able to effectively service your clients and avoid having to lay off staff. It’s the worst time to furlough the workforce because of the resources needed to help clients get through a really difficult time in the market. AdvicePeriod imposed a flat fee structure so that our business is always stable, benefitting both sides equally.
- (424) 355-0232