A MAGNET FOR RETIREES: Arbor Wealth welcomes new residents seeking “fee-only” investment advisory relationship

A recent study cited Walton County as one of the five fastest growing relocation retirement areas in the United States. In what way and how often, we wondered, do new residents seek a local “Fee-Only” investment advisory relationship? For answers, we sought out Margaret R. McDowell, founder and Firm Principal of Arbor Wealth Management, LLC, a “Fee-Only” Registered Investment Advisory Firm located directly on Highway 98 in the Tops'l Commercial Center near the main entrance to Sandestin.

Question:  Are you visiting with many potential clients who are new to the area?

Arbor Wealth:  Quite often.  South Walton is a magnet for retirees from Houston to Dallas, from Shreveport to Baton Rouge; from Memphis to Nashville; and from Birmingham to Atlanta.  Recently we have noticed an increase in appointments with snowbirds who are becoming permanent residents.

Question:  Why do new residents look for a local “Fee-Only” investment advisory relationship?

Arbor Wealth:  Many reasons. Most savvy investors are familiar with the “Fee-Only” model and are extremely pleased to find a “Fee-Only” firm here locally. And the predicted extended low-return environment is motivating investors everywhere to seek professional management. Issues related to preservation of wealth, growth and income generation handled in person provide a sense of security to the investor. Primarily, people want to see and personally interact with the person that handles their investments, rather than deal with a 1-800 number. 

Question:  What does “Fee-Only” mean?

Arbor Wealth: A “Fee-Only” firm like Arbor Wealth Management sells no products, accepts no commissions from any source, is compensated solely by and serves as a fiduciary to its clients, and maintains no proprietary interest in any fund. It’s a conflict-free investment environment. The investor and the advisory firm sit on the same side of the table.

Question:  What is income generation?

Arbor Wealth:  It’s our specialty niche here. We work almost exclusively with high net-worth clients and most high net-worth investors want to live off their investments as much as possible and avoid depleting their principal. We invest almost entirely in dividend-paying stocks and bonds that pay coupons and create a systematic, periodic monthly income — money-linked to the client’s checking or savings account.  We call it a replicated paycheck.

Question:  What is a fiduciary?

Arbor Wealth:  A fiduciary is held to the highest standard of client care and is required legally, morally and ethically to act in the client’s best interests. Wirehouses and broker-dealers are not fiduciaries.

Question:  Do you have a minimum account size?

Arbor Wealth:  Our minimum account size is $250,000 of investable assets.

Question:  Do you charge for other services besides wealth management?

Arbor Wealth: No. All our other services, including financial planning, are included in our monthly management fee. The client’s encrypted monthly statement details exactly what our management fee was and how it was calculated.

Question: How do you provide for your client’s other needs?

Arbor Wealth: It’s actually one-stop shopping, or what we like to call 360 degrees of client care. We maintain a professional relationship with Lisa Y. Pitell, the founder of the Pitell Law Firm, for estate planning; and with Dawn M. Paul, CPA, for tax planning and tax preparation. There is no renumeration exchanged, however.  We just want our clients referred to competent and reliable professionals.

Learn more at www.arborwealth.net.