Slide 6 of 11
Targeting Gen X and millennials: Pamela J. Horack said that while she targets young professionals and working families, many advisers won’t work with a client with $40,000 or less to invest. “If people outgrow me, then that means I’ve done my job,” said Horack, a certified financial planner in the Charlotte, N.C., area whose Pathfinder Planning is part of the XY Planning Network, a group of fee-only advisers that was co-founded by Pinnacle’s Kitces and focuses on Generation X and millennials, also called Gen Y.
Just four ETFs: Horack’s portfolio uses the same four funds that appear in the Vanguard 2045 target-date fund VTIVX, +0.25% except it goes with ETF versions. She doesn’t put as much into stocks as the 2045 fund, and she dials back further by keeping 2% in cash. MarketWatch made it clear to each human adviser that it was asking for a recommended portfolio for an article.
Fees: Horack said she would work on a project basis with this 35-year-old, rather than charging a percentage fee on assets. This client probably would be directed to pay $1,800 for a comprehensive financial plan, she told MarketWatch. That includes a recommended portfolio, retirement plan and insurance review plus budgeting help. (Pinnacle’s Kitces emphasizes that human advisers in general will do more than just manage a portfolio, as they also can offer guidance on home loans, college savings and many other money matters.) Horack said she doesn’t do investment management, so the client would implement the recommended portfolio.