Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Portfolio Management of Pooled Investment Vehicles
- Portfolio Management for Businesses or Institutional Clients
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Pooled Investment Vehicles
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Fixed Fees (Other than subscription)
Painted Porch Advisors LLC Overview
Painted Porch Advisors LLC is a fee-only registered investment advisory firm based in Santa Barbara, California. The company has been in business since 2021, offering a range of investment advisory services to individuals, small businesses, institutional clients, and pooled investment vehicles. As a fee-only firm, Painted Porch Advisors LLC receives compensation solely from clients and doesn't earn any commissions from the sale of investment products. The firm's main focus is investment advice, offering services such as financial planning and portfolio management. Their portfolio management services cover a variety of clients, including businesses, small businesses, or institutional clients, as well as individuals with different needs. This comprehensive service range is aligned with the firm's goal of providing all clients with personalized investment solutions tailored to their specific investment objectives. At Painted Porch Advisors LLC, clients receive holistic and objective guidance that is free from potential conflicts of interest. Their experienced advisors strive to provide clients with an exceptional investment experience, and to educate them through the financial planning process so that they can achieve their long-term goals confidently. Painted Porch Advisors LLC is committed to its clients' best interests and endeavors to build a solid track record of successful investing.
Painted Porch Advisors LLC caters to a diverse clientele, ranging from individuals seeking financial guidance to high net worth individuals aiming to optimize their wealth management portfolios. Additionally, the firm serves pooled investment vehicles, facilitating their investment and asset management endeavors. When it comes to fee structures, Painted Porch Advisors LLC offers flexibility in options, catering to the specific needs of each client. Depending on the nature of the service provided, the firm may charge a percentage of the assets under management (AUM) or fixed fees. This bespoke approach ensures that clients receive optimal value for their investment and provides transparency in fee structures. Overall, Painted Porch Advisors LLC is committed to delivering financial solutions that are tailored to the clients' unique financial goals and objectives.
Typical Clients, Fee Structures & Investment Minimum
Unfortunately, the Part 2 Brochure for Painted Porch Advisors LLC does not mention anything about the firm's investment minimum. It is unclear what the minimum investment requirement is for potential clients.
How This Office Can Help Carpinteria, CA Residents
Painted Porch Advisors is a boutique financial advisory firm located in Carpinteria, California. The firm aims to assist its clients in achieving their financial goals through personalized financial planning and investment management. With Carpinteria being a beach town, many of the firm's clients may be facing unique financial challenges such as seasonal employment income, fluctuating expenses due to tourism, and a high cost of living. Painted Porch Advisors works with these individuals to develop tailored financial strategies that take into account their specific needs and circumstances. The firm offers a range of financial planning services including retirement planning, tax planning, estate planning, and investment management. The team at Painted Porch Advisors has extensive experience in helping clients navigate the unique challenges that come with living in Carpinteria. They understand the local economy and its nuances, which enables them to develop effective financial plans that address the specific needs of their clients. Overall, Painted Porch Advisors is an invaluable resource for anyone looking to achieve financial security in Carpinteria, California.
Services Offered by Painted Porch 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 Painted Porch 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
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.
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
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.
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
Painted Porch Advisors LLC is registered to service clients in the following states:
- California
- Florida
- Nebraska
- Oregon
- Texas
- Washington
Disciplinary History
Painted Porch Advisors LLC does not have any disclosures. Please visit it's Form ADV for more details.