Frequently Asked Questions
What is the cost involved and are there additional fees?
Our comprehensive financial plan is free. If you need to speak with an advisor, it is free as well. There’s no hidden cost! We don’t charge unless you decide to invest with evisor. If you choose to open an investment account with us, the annual cost will be .25% of the assets you choose to have us manage.
How long will this take?
This process should take about an hour. The hardest part is gathering the required information. We advise gathering all income, expense and investment related statements beforehand to shorten the process. Once you have all the required information, the rest is easy.
Do I need to link my accounts?
Unlike many other robo-advisors, we don’t require you to link your accounts in order to provide your financial plan. However, the more accurate the information you provide, the more complete our financial plan will be.
Why does evisor need my personal information?
evisor only needs your personal information if and when you decide to open an account with us. We will only ask for information that we are required to collect per SEC regulations.
Where will my money be held?
All evisor accounts are held by Charles Schwab. Charles Schwab is the largest custodian for Registered Investment Advisors (RIA’s).
Can I speak to an advisor if I need one?
Yes, our advisors are available during business hours from 8.30am to 5.30pm MST. Outside of regular business hours, please send an email with your information and any questions you may have. Our licensed financial professionals generally respond within 1 business day.
How does the plan work?
Our Lifetime Financial Analysis is meant to analyze your financial position as it evolves over time. The plan works by factoring in assumptions about your assets, liabilities, income, and expenses on a current and future basis. We also make assumptions about inflation, your tax rate, wage growth, and expected retirement age; among others. In the end, evisor evaluates the probability of achieving your objectives under different sets of assumptions and considers numerous scenarios that could adversely affect your goals.
What should I be planning for?
Our plan is designed to estimate the likelihood that you will have sufficient cash to support your retirement needs. However, evisor can also help you plan for other occasions such as a home purchase or your child’s college savings.
Can I modify the plan in the future?
Yes, it is very easy to update the plan. You are not ‘locked’ into a plan. For instance, if you have a child and your expenses go up, you are easily able to go back and change your details.
What are some of the assumptions of the plan?
In the initial version of your plan, we use assumptions about your retirement age, life expectancy, inflation rate, salary increase rate, and the expected growth rate of your investments. Don’t agree with our assumptions? Don’t worry, after going through the initial process, you will be able to adjust our assumptions to your preferences/predictions.
Does evisor show when I should retire?
Helping you to know when you should retire is just one of the questions we hope you’ll be able to answer after going through the financial planning process. Our model assumes a retirement age of 65 and will give you recommendations based on that retirement age. If your results indicate that you will have plenty of money at that time, consider re-running the planning tool with a different (younger) retirement age, to help you determine the retirement age that you want to work toward and plan on.
Why do we ask for current expenses?
Our plan estimates your future needs based off of your current expenses. We understand they may change in the future and have built that assumption into our model. If you have any questions about how this assumption works, feel free to reach out to an advisor.
What is the Investment Process and how is the portfolio generated?
evisor follows PRIM, a proprietary, internally developed process rooted in evidence based-science. It stands for Plan, Recommend, Implement and Monitor. Our investment process starts with a holistic view of your overall wealth.
The Plan starts when evisor creates a comprehensive financial profile that identifies your needs, goals, constraints, risk profile and any unique circumstances. Our next step is to recommend a plan for the future; whether it’s a periodic savings plan or a strategic asset allocation plan. Implementation involves opening accounts, setting up deposits and executing the asset allocation. The last step is to monitor the plan through performance and risk reporting, and when necessary, use tactical rebalancing and strategic reallocation.
What investments does evisor offer?
evisor utilizes a systematic approach when selecting investments and managers. Low-cost, highly-diversified mutual funds form the core of our portfolios. evisor also offers a wide array of products dependent on the nature of your needs. The main thing to note is that we’re not an active investment company. That means we’re not stock pickers and we do not try to time the market. We seek to optimize your portfolio allocation to deliver the returns needed to support your goals.
Does evisor have SRI or ESG portfolios?
Yes we do! evisor offers additional portfolios that have ESG characteristics. Environmental, Social and Governance investing includes environmental, social and governance factors along with financial factors. It is also known as Impact Investing or Socially Responsible Investing (SRI). The investments seek companies that have a positive environmental or social impact, among other issues. For example, ESG investing may not invest in companies that are large polluters to the environment.
What type of accounts does evisor offer?
We offer retirement accounts and taxable accounts. Our licensed advisors are also able to consult on your existing accounts, including employer sponsored retirement accounts and education accounts such as a 401k or a 529 plan.
What asset classes do we invest in?
By and large, our portfolios will invest in a broadly diversified portfolio of US and international securities. However, depending on your financial and risk profile, we potentially will include other asset classes such as Real Estate, Preferred Equity, Master Limited Partnerships, Business Development Company’s, and High-Yield securities.
What is an employer sponsored plan (401k, 403b, 457)?
This is a retirement account that is sponsored by an employer, which are funded through direct payroll deductions, making this a simple and easy way to invest. Sometimes, the employer sponsoring the plan will match employee contributions up to a certain percentage, which provides another incentive for employees to participate in the plan. Some common accounts of this type are the 401(k), 403(b) and 457. Additionally, some employers offer the choice between Roth or Traditional contributions.
How can I save for retirement if I am Self-Employed, besides a Traditional or Roth IRA?
Accounts such as a SEP-IRA, Simple IRA, and Solo 401k, are a way for small business owners to set aside more money for retirement, on a tax-deferred basis. If you are a business owner, and you would like to save additional funds for retirement above the $7,000 annual limit to a Traditional or Roth IRA, connect with an evisor specialist to learn more.
What is a 529 account?
A 529 account is a tax-advantaged savings vehicle designed to help individuals save for future education expenses, including but not limited to, tuition. The contributions are post-tax, and grow tax-free. Withdrawals are not taxed, provided they are used for an eligible education expense (https://www.irs.gov/newsroom/529-plans-questions-and-answers).
Can my spouse contribute to an IRA if they don't work?
They cannot, however you are able to make contributions to an IRA on behalf of your non-working spouse. Remember that the source of the contribution must be your own earned income, that isn’t already being contributed to your own IRA or another retirement account. Also note that the contribution for your spouse must be into an IRA in their own name, rather than yours.
What are the benefits of diversification?
Diversification has been called the only free lunch in investing because the risk-reducing benefit of diversification is grounded in mathematics and statistics. Beyond asset classes, evisor diversifies exposure across asset type, geographic market, fund and manager. However, diversification is not just about risk reduction. Investment research conducted over several decades suggests that the vast majority of returns available from investing can be captured through asset allocation. evisor incorporates this research into our portfolio construction process, maintaining strategic exposure to a broad array of asset classes rather than attempting to pick winners and losers.