Offices in Boston and S Dartmouth, Massachusetts
Financial Planner • Financial Advisor Boston, Massachusetts
I am an Investment Adviser Representative at Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser (RIA) based in Fairfield, IA. I am also registered with Cambridge Investment Research, Inc., an independent broker-dealer with over 3,000 registered representatives nationwide.
Most clients pay fee-only or an hourly rate. The size and complexity of the client’s wealth management and financial and retirement planning determine that fee
I’ve held an industry securities registration for 30+ years and am subject to SEC and FINRA oversight.
Put Your Money in the Hands That Know Best
Life isn’t all about money, but it is an essential tool for building the life you want. Like any tool, the best results are achieved when skilled, experienced hands are in control. I have studied the financial markets for over 30 years. As the new economic ‘normal’ is continually redefined, I always strive to learn more about it and adapt my knowledge.
The result: I can help you make intelligent financial planning decisions for every stage of your life under all market conditions.
Every wise planning decision starts with me listening to you and asking you the right questions, including:
- What are your short-term and long-term financial goals?
- What kinds of financial assets are you working toward?
No Cookie-Cutter Solutions
As a Massachusetts personal financial planner, I have access to many financial products, including mutual funds, ETFs, stocks, bonds, annuities, and life insurance programs. I use these and other products to build custom planning solutions for people according to their needs and goals.
Fee-Only Financial Planner Costs
Over the last twelve years, the government’s interest in financial advisor compensation has dominated the regulatory landscape. It began after the 2008 financial crisis with the Dodd-Frank legislation, which tasked the SEC with reviewing the two ways financial advisors get paid: fees and commissions.
Next came the 2015 Fiduciary Rule from the Department of Labor. It would have required most financial advisors working with retirement plans, including IRAs, to charge a level fee if enacted as proposed. Again, the belief was that the solutions provided to the client would be better because the compensation earned by the advisor was the same, no matter the product recommended.
After much discussion, court battles, and changes, both are now in effect. The Fiduciary Rule no longer imposes a level fee, but it does require a fiduciary standard for most advisors interacting with retirement plans, including IRAs. On the other hand, Regulation Best Interest, another SEC rule, requires finance professionals paid by commission to work in the client’s best interest.
Financial planners working under the fiduciary standard usually charge the client a fee based on the percentage of the client’s assets managed. They might also provide other financial planning services paid for by that fee.
That fee seems to hover around 1% by convention, or it started that way because it is a round number. Anything above seems excessive because clients usually have additional costs for the products, which are not paid to the advisor. Hopefully, the advisor keeps those product costs low by incorporating institutional share classes and index funds.
Instead of an asset fee, a planner could charge the client an hourly fee. However, the recommended product has no bearing on the compensation earned by the fiduciary advisor. However, I find the hourly fee arrangement less common as most people paying for fiduciary advisory services have substantial assets that the advisor charges a fee to manage.
However, the hourly fee arrangement may become more common as both the Fiduciary Rule and the Best Interest Standard place hurdles on advisors, recommending that customers roll over their 401k accounts.
That rollover is what the previous advisor charged for management or a commission earned after recommending a rollover for many people. Because of these hurdles, advisors may recommend that clients keep their money in the 401k and set an hourly fee arrangement to manage it there.
One problem with the commission model was that so many undisclosed conflicts of interest influenced the product recommendations. As a result, too many times, the customer was placed into a higher-cost product. However, many of those conflicts should be gone with the new Best Interest Regulation, making a one-time commission a competitive alternative to ongoing fees for any client whose 401k plan doesn’t offer excellent retirement income or institutional pricing choices.
Financial Advisor Tim Hayes Believes the DOL Got It Right
By striking a balance between new protections for consumers with additional burdens on the financial services industry, Financial Advisor Tim Hayes believes the Department of Labor (DOL) hit a home run with its new retirement advice rule.
Fixing the Law
By eliminating a 1975 rule, made when retirement plans were much different than they are today, the Department of Labor rectifies the contradiction that financial advisors with conflicts of interest are providing financial advice to retirement accounts even though ERISA, the law governing these accounts, prohibits this from happening.
What does the new rule mean for consumers? “If you have a 401(k) or 403b, the advisor fees might come down. If you roll over the 401(k) or 403b to an IRA, the fees in the IRA should be competitive to what they were in the 401(k).
My Security Licenses
Passing the exam qualifies candidates as both securities agents and investment advisor representatives.
The exam measures the degree to which each candidate possesses the knowledge needed to offer the products of investment and insurance companies, including the sales of mutual funds and variable annuities.
What’s the Difference Between Financial Advisors and Financial Planners?
There is no financial planner in the regulations. Instead, there are investment advisor representatives and registered representatives. ‘Financial planner’ is more of an industry term for someone who looks at your entire financial picture. Some financial planners are fiduciaries, and others are not. Some charge a fee, some are compensated through a commission, and some receive both.
A private organization offers a designation certified financial planner (CFP). Since 2018, all holders of that designation are required by the organization to be fiduciary. But the 40 Act determines if someone is acting as a fiduciary. Hence, the organization requires that anyone who wants to hold that designation be willing to fall under the 40 Act.
There is also the National Association of Personal Financial Advisors (NAPFA), a directory where you can find a fee-only advisor in your area. Financial advisors pay annual dues of $249 to belong to NAPFA, plus a one-time, non-refundable processing fee.
Financial Planning Services
As a Massachusetts financial solutions advisor, I help individuals and businesses reach their goals. With no proprietary product requirements or quotas, you benefit from objective advice.
- Wealth Management, Financial Planning, Retirement Planning Advice, rollover IRAs, 401k, 403bs, annuities, 529 plans, etc. I can also help with your life and disability insurance.
- Provide mutual fund and exchange-traded-funds (ETFs) due diligence selection process screening 10,000+ funds down to a couple hundred eligible for use in your portfolio. The process screens for manager tenure, fees, performance, and style.
- Advise companies on their 401k plans, SEPs, SIMPLE, 403b, ESOP, and Defined Benefits Plans. Help with group life and disability.
- Help executives and partners design their deferred compensation plans and critical employee insurance,
Fee-Only Financial Planner
- Fee-Based wealth management
- Fee-only financial planning
- Financial products for retirement, rollover IRAs, individual 403bs, trusts, and all non-retirement accounts
- Life insurance products and needs analysis and product design, including term life insurance, whole life insurance, universal life insurance, variable life, and disability insurance
- Risk tolerance review
- Fi360 Proposal Report – Compare your current account to a generated portfolio based on your risk tolerance score.
- Tax-reducing products and strategies such as municipal bonds, annuities, net unrealized appreciation, and selling specific shares of stock
Benefits of a Personal Financial Planner
- You will understand investment concepts. I talk in a familiar language, not financial jargon.
- You can make educated investment decisions with the help of my objective, independent research.
- I am free to collaborate with you and advise you objectively as we design a comprehensive financial plan to address your concerns and establish a path to your goals and dreams.
- You can trust and confide in me, as I will understand and prioritize your financial priorities and goals. I will serve you in a relationship.
- You will not have to explain your financial history again and again to a series of new faces; I will be here for you.
Comprehensive Financial Planning Process
- Gather Financial Data – fact finder, tax forms, brokerage statements, retirement account statements, mutual fund, and annuity statements, insurance policies
- Establish Financial Goals – college funding, comfortable retirement, income needs, second home, travel
- Analyze Financial Information – mutual fund and exchange-traded-fund (ETF) due diligence, retirement planning, asset allocation, risk tolerance analysis, beneficiary audit, tax-reduction strategies
- Recommendations – product solutions, stocks, bonds, mutual funds, exchange-traded funds, annuities, life insurance plans
- Monitor and Update – annual reviews, twice-a-year email updates, monthly brokerage statements, CIR statements, online reporting of your accounts
My Professional Designations
Individuals who hold the AIF® designation have:
- Completed the AIF® Designation Training;
- Passed the AIF® designation exam;
- Met the designation’s prerequisites and qualification and conduct standards;
- Accrued a minimum of six hours of continuing professional education, with at least four hours coming from fi360-produced sources;
- Attested to a code of ethics.
Individuals who hold the CRPS® designation have:
- Completed a course of study encompassing design, installation, maintenance and administration of retirement plans;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and to apply theoretical principles to life situations;
- Pledged adherence to the CRPS® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
CRPS® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
Individuals who hold the AWMA® designation have:
- Completed a course of study encompassing wealth strategies, equity-based compensation plans, tax-reduction alternatives, and asset-protection alternatives;
- Passed an end-of-course examination that tests their ability to synthesize complex concepts and apply theoretical concepts to real-life situations;
- Agreed to adhere to the AWMA® Standards of Professional Conduct, and are subject to a disciplinary process in that regard.
AWMA® designees renew their designation every two years by completing 16 hours of continuing education, reaffirming adherence to the Standards of Professional Conduct, and complying with self-disclosure requirements.
CFS designation is awarded upon passing an examination on mutual funds, ETS, REIT’s, closed-end funds, and similar investments. Advanced studies on topics include:
- Fund analysis and selection;
- Asset allocation;
- Portfolio construction;
- Sophisticated investment strategies for risk management, taxes, and estate planning.
San Diego, CA, November 13, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the only nationally recognized tax designation, CTS™ (Certified Tax Specialist™). This graduate-level designation is conferred upon candidates who complete an 135+ hour educational program focusing on personal income taxes and methods to reduce tax liability. The combined top state and federal bracket can easily exceed 40%.
San Diego, CA, September 1, 2020 – The Institute of Business & Finance (IBF) recently awarded Tim Hayes with the estate planning designation, CES™ (Certified Estate and Trust Specialist™).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on trusts, wills, probate, retirement benefits, caring for children, and what should be done after the death of a loved one. Over $50 trillion is expected to pass from one generation to another during the next half-century.
The Accredited Portfolio Management AdvisorSM, or APMA® program, is a designation program for financial professionals. The program educates advisors on the finer points of portfolio creation, augmentation, and maintenance. Students will gain hands-on practice in analyzing investment policy statements, building portfolios, and making asset allocation decisions.
San Diego, CA, May 12, 2020 – The Institute of Business & Finance (IBF) recently awarded Timothy Hayes with the only nationally recognized annuity designation, CAS® (Certified Annuity Specialist®).
This graduate-level designation is conferred upon candidates who complete a 135+ hour educational program focusing on fixed-rate and variable annuities. Several trillion dollars are invested in annuities; it is estimated that at least one-third of all annuity contracts are not titled correctly.
Why I Remain Duel Registered
I remain registered as an investment adviser representative and as a registered representative. Most of my business is as a fee-only investment advisor representative, where I charge a client a fee or an hourly rate for my advice. I like this arrangement because it is not product-based, and I can get paid to provide ongoing advice to my clients.
However, I keep my registered representative license because when I compare a commission product, it makes more sense for the client. For example, a new client who is 25 years old wants to purchase a Roth IRA with $6,000—I cannot imagine charging them a fee for the next forty years.
Also, I like to use American Funds for some clients with big 401k or 403b accounts, if I recommend that they roll over their money. If their 401k account balance is over a million, they pay no sales charge. And American Funds has some of the lowest management fees for actively managed funds. They also offer excellent funds for customers interested in generating retirement income. But I need to have a registered representative licensed to provide this option.
What to Do Now
If you have an IRA and work with a financial advisor, now is an excellent time to review the financial planning arrangement, fee or commission, best interest, or fiduciary. Also, if you are thinking of rolling over a 401(k) or 403(b), ensure your decision is consistent with the new rule.
Suppose you happen to administer a retirement plan for an employer: Ensure that any advisor compensation is aligned with the new interpretation from the DOL and the new rule from the SEC.
Fee-Only Financial Advisor, Fee-Based Advisor Near Me
I will provide expert and highly personalized financial planning, retirement planning, and wealth management from my Boston or Dartmouth offices when you need an independent financial advisor in Massachusetts (Boston and Greater Boston, Salem or the North Shore, Hingham or another town on the South Shore, Andover and the Merrimack Valley, the Metrowest including Southborough, or the Southcoast, Martha’s Vineyard, and Nantucket)
These are the opinions of Financial Advisor Tim Hayes and not necessarily those of Cambridge Investment Research. They are for informational purposes only and should not be construed or acted upon as individualized investment advice.
Fee-Only Financial Planner, Hourly Rate, or Commission
Most clients pay fee-based or an hourly rate. The size and complexity of the client’s wealth management and financial and retirement planning determine that fee.
Advisor Financial Planning
Fee-Only Financial Planning
Financial Planning Services
Best Interest Regulation