Q.
I wanted to ask if you knew anything about Larson Financial….I haven't gotten involved with them yet, only went to a dinner where they spoke at and am meeting with a rep today just to get some more information. I was curious as to your knowledge of this company and any info you could provide.
A.
Before answering your question, I need to do the expected disclosure this blog is famous for. I was vaguely aware of Larson Financial from some of their marketing, but first came in contact with them when I was sent a copy of the book Doctor's Eyes Only by one of their advisors, which I reviewed on the blog. The review was actually fairly critical of the book. Although it contained a lot of good information, in my opinion there was way too much advertising included. One of the authors, Tom Martin, subsequently submitted three guest posts that were published on the blog, Lower Your Roth Conversion Rate, Locking In A Lower Capital Gains Tax and Avoiding The Alternative Minimum Tax. Tom and I have been collaborating on a project recently and he flew my wife and I out to Indiana and took us out to a nice dinner the night before we met for a few hours about the project. I learned a lot about Larson Financial in the process that I thought this blog's readers might be interested in. You should be aware that I have not been paid to write this review and that I do not get paid a dime if you choose to hire a Larson Financial advisor.
A Firm Serving Doctors
Larson is focused on serving the financial needs of physicians and dentists. They have offices in 27 states, but will work with you no matter where you live. They consider themselves the nation's largest financial planning firm exclusively for doctors. The organization is a bit of a franchise format, but with fairly heavy control exerted by the central offices both in advice rendered and in the investment portfolios. So when you hire an advisor, you get his expertise as well as that of the central management of Larson. Upon being hired, each advisor goes through a 2 year “fellowship” (their words, not mine) where he receives additional training, mostly geared toward the unique financial needs of doctors. The individual advisors keep a percentage of the fees they generate from serving clients, and then pay Larson a certain percentage toward overhead and profit. Interestingly enough, the profits at the firm-level are all donated to charity through the Larson Financial Foundation, primarily going to support entrepreneurs in poverty-stricken areas of the world, often leading to wells, orphanages, schools, and medical clinics being established. They also lead medical missions and have often included clients to provide medical expertise.
Financial Planning AND Investment Management
Although most of their clients avail themselves of both services, the company actually provides two separate services, and that separation is clear when you examine their methods and fee structure closely. On the financial planning side, clients first work with an advisor to build a comprehensive plan, then you have quick checkups on a quarterly basis, discussing different topics each quarter. In the Summer, you discuss cash flow, budgeting, employee benefits, insurance, and asset protection. In the Fall, you do tax planning and investment strategy, including your retirement accounts. In the Winter, you discuss major purchases, debt management, education savings, financial goals, and retirement planning. In the Spring you do estate planning, charitable planning, and beneficiary reviews. The financial planning fee also includes contract negotiation and review, a valuable service. If the firm is also managing your assets, you are given quarterly investment updates at the same time as these financial planning meetings. Advisors are also “on-call” between meetings to address additional issues. For additional fees they will also do contract review and negotiation, private practice analysis, and practice management activities. Their tax arm(MedTax) will also do tax preparation for you and your practice. Their law arm (Larson Law Firm) will do estate planning, corporate formation, and asset protection. In short, their goal is to be a one-stop shop for all your financial needs. But they're also willing to work with you a la carte for whatever you need help with.
They Use DFA Funds
In conjunction with the University of Chicago and DFA, they've developed 9 portfolios that they try to fit their clients into as best they can. These range from a 20/80 “Risk Averse I” portfolio to the 100/0 “Highly Aggressive” portfolio. They're really all pretty similar, just with a varying stock/bond percentage. They consider the models proprietary information that they spent a lot of time and money on, so while I've got them in front of me, I've been asked not to share the specifics. Suffice to say, they look like your typical small-and-value-tilted, Boglehead-style, Slice-N-Dice portfolios, composed almost entirely of DFA funds. Tom Martin describes the amount of small and value tilting as just as little bit more than DFA's US Equity Core 2 Portfolio. I'm convinced there isn't such a thing as a perfect portfolio, at least known in advance, but these portfolios certainly meet my requirement of being reasonable. Any reasonable buy-and-hold passive portfolio will work just fine for your retirement, as long as you stick with it over the long-term.
I was pleased to see they use DFA funds. If I were going to hire an investment manager (I'm not), using DFA funds would be one of my requirements. I really like Vanguard index funds, but if anyone was going to give them a run for their money, it would be DFA. DFA funds tend to match or slightly outperform Vanguard index funds over the long run and Bogleheads often debate the merits of DFA vs Vanguard. DFA funds aren't true index funds, but they are passively managed, and are done so in several ways that probably make them a little superior to a true index fund. Some smart people peg the advantage at 0.2-0.3% a year when properly adjusted for risk (remember that DFA funds in general tend to have a riskier value and small tilt). If you ask DFA, they may claim a 2-3% a year advantage. Some of their approved advisors might try to claim a 4-6% improvement, but when you pin them down they're usually comparing small and value tilted DFA funds to non-tilted Vanguard index funds. You can compare funds and come to your own conclusions. DFA's US Large Cap Fund has a 10 year return of 8.24% versus the Vanguard 500's 10 year return of 8.23%. DFA's Emerging Market Portfolio I has a 10 year return of 17.50% vs Vanguard's 16.50%. DFA's Small Cap Value Fund has a 10 year return of 13.04% vs Vanguard's 11.37% (but keep in mind that DFA's product is smaller and more valuey and thus riskier.) Unfortunately, you can't really get DFA funds unless you go through a DFA approved advisor like Larson. Many Bogleheads have concluded that it isn't worth it to them to pay an advisor 1% just to get DFA funds, but if you're going to use an advisor anyway, I think most smart folks would agree that using DFA funds would probably make up for at least part of the asset management fee.
Larson Will Manage All Your Accounts
One thing that I thought was pretty cool about Larson is that they're willing to manage and coordinate all of your various accounts, which is pretty important and can boost returns (Larson claims by 2-3%, citing Roger's Tax Aware Investment Management). Right now I have three personal Roth IRAs, a spousal Roth IRA, three 529s, two 401Ks, four taxable accounts, two HSAs, a UGMA account and I'll soon be opening a Solo 401K. I also have two empty traditional IRAs I use for Backdoor Roth contributions and a SEP-IRA I occasionally use. That's 20 accounts, and I've closed 3 others in the last year or so. It wasn't a big deal when all I had to deal with was two Roth IRAs and the TSP, but things get more and more complex as life goes on. Keeping my portfolio balanced across all these accounts becomes a more time-consuming task each year. Larson will work with each of these for you, saving you a significant amount of time, effort, and hassle. They used to email you instructions for those accounts, like your 401K, that they might not have direct control over. However, they've found it works far better to get on the phone with you, have you log on to your account, have you allow them access at the same time, and make any portfolio changes in real-time with their clients. That's a real benefit to someone who doesn't know how to or doesn't want to deal with this stuff. Another cool feature is that they can allow you to use DFA funds within your 401K (as long as it has a brokerage window such as through Fidelity or Schwab), even if they aren't normally available in the 401K.
Larson Is A Full-Service Firm, and They Charge Like It
Larson provides a lot of service, both with regards to financial planning and investment management. But they're not doing it for free (make no mistake, I'd hire them in a second if they were.) They charge fees that I would rate as average to slightly above average. Their financial planning fees start at $375 per quarter ($1500 a year) for an individual, although the fee is waived during training. They don't collect any mutual fund loads since they don't use loaded mutual funds, but they do receive commissions when they sell you a term-life or a disability policy (which is probably the main way residents compensate them for their services.) These commissions range from 40-80% of the first year's premium for most policies. Larson guarantees their financial planning fees in writing each year and expects to save its clients' time and money in an amount more than their fees, otherwise they expect to be fired and refund the fee.
The published investment management fees are:
- <$250K 1.75% AUM
- $250-500K 1.5% AUM
- $500K-$1M 1.25% AUM
- $1-2M 1% AUM
- $2-3M 0.9% AUM
- $3-4M 0.8% AUM
- $4-5M 0.7% AUM
- >$5M Negotiable
Tom Martin doesn't know of a single investor with the firm who is actually paying the 1.75% rate, however. Rates are significantly cheaper if they're managing 401K dollars for your practice. I think it is good that the rates get cheaper as your assets increase, but in my opinion, the rates start too high and they get cheaper too slowly. It obviously doesn't take 2 1/2 times as much effort to manage $3.6 Million as $900K. You have to consider what you're getting though. Keep in mind that many “DFA Advisors” simply won't take you until you get to $500K or $1M, and then just charge you 1% of AUM. At least this way you can get right into your desired portfolio even with just a few thousand dollars right out of residency. A highly-paid physician with a high savings rate won't spend that many years paying more than 1%. Fees are also generally paid “pre-tax,” either as a business expense or from tax-deferred accounts, further reducing the fee.
So, all in, a physician with his insurance in place and a $500K portfolio might be paying $2K a year in planning fees and $6250 in portfolio management fees for a total of $8250. Does that seem like a lot of money? It does to me, that's why I do both my own financial planning and investment management. But if I actually assigned my usual hourly rate to the time I spend doing this stuff, it might look like a bargain. Unlike me, most doctors don't see personal finance and investing as a hobby that is a fun way to spend their time. Although a relatively high percentage of this blog's readers are do-it-yourself investors, the truth is that most doctors desire to and probably should hire a GOOD advisor to help them. I don't have a problem with doctors paying a fair, fully-disclosed fee for good advice and good service. I'm convinced that Larson Financial is giving good advice and will leave it up to the reader as to whether they feel it is being offered at a fair price for them personally. Larson is a great solution for the busy doctor who has little time, interest, or expertise in financial matters.
Heck, I like this stuff and am only at 4 accounts total, but I can see how the number of accounts can grow leading to a slightly more difficult time keeping them all balanced. That is one of the reasons why I am avoiding tilting/slicing/dicing and pretty much trying to keep the same funds in each account if I can – Lifecycle in the TSP and Vanguard Target Retirement in IRAs. Unfortunately the fiancé’s 401(k) does not have Vanguard funds as an option so we when with a close approximation. I may lose a point or so on returns, but I also am much more easily able to manage them myself and save on the management fees.
Be careful of Jack Vogel, he is a con artist who believes he is the wolf of Wall Street.
You mean the late Jack Bogle? You may be the only person in the world who thinks he’s a con artist or the wolf of Wall Street.
I actually have a meeting setup with Jack Vogel! Can you tell me more?
I have used Larsen since residency (5 years now). Other than that, I don’t have any incentive to sell you on Larsen. I like learning about this stuff but don’t have time or desire to do it myself. Larsen has been great for me. They don’t push products and are open to my suggestions/strategies. I think their fees are reasonable for the services they provide. I guess that’s for everyone to decide, but for me it has worked out well and I’m confident about their services and where I stand financially at this point in my career.
I recently “hired” Larson Financial after reading their book and researching them on-line. I have no financial experience but would like to learn and thought I would give them a try. Unfortunately, I did everything over the phone as they dont have an office near me and somehow we had a miscommunication. I had clearly (in my mind at least) asked if there were any extra fees for corporate formation and contract review and was told it was all inclusive with with their quarterly fees. Then I talk to their lawyer and he’s telling me its an extra $800 to form a LLC etc. My Larson agent claims he told me it was extra. Maybe he did but like I said, that’s not what I heard. I promptly fired the group as an $800 “miscommunication” is not something I was comfortable with in a group that was going going to manage a lifetime of money for me. In his defense he offered to take $800 off the first year fees to compensate, but it was still the principle of the matter. I think their programs and offerings are very complete and they would probably do a great (albeit expensive) job at what they do. I however will not be doing business with them or anyone if I cant sit down face to face and get everything in writing beforehand.
Hi Craig,
I appreciate your candor and apologize for the misunderstanding that happened. It was actually my personal right-hand guy you were talking with and I was helping behind the scenes with a couple of items on your behalf. My guy is genuinely the most rock solid guy you could ever meet and my wife has specific instructions to work with him if anything ever happens to me. He’s also assigned as a co-trustee of all funds for my kids if something happens to both my wife and me. I share that to articulate how much faith I have in his personal integrity.
He felt terrible about the misunderstanding and I can provide first-hand testimony that it wasn’t intentional. After you brought your concern to his attention, he came to me immediately asking for approval to personally eat the cost. He wanted to take full responsibility for the situation even though his recollection wasn’t completely aligned with your concerns. I greatly appreciate your fair report of everything and that provides me with further evidence that you’re the type of guy we hope to grow with.
We always desire to make our processes better and we do our best to learn from any misunderstandings that occur. I always say that I don’t like surprises when it comes to the money I’ve been entrusted with – whether my own, or clients’.
As a result of your specific experience, we asked our compliance team to revise our client agreement to make it even more clear that our legal, tax, and investment management services are distinct from our financial planning services. It used to be a paragraph in the agreement, but now we have an entire separate form. We also ran a firm-wide training to make sure that all of our advisors are spelling this out very clearly with all clients right up front to try to avoid any surprises in the future.
I hope you’ll give us another opportunity to serve you someday. Unfortunately, we are not always flawless but we desire to fix it fast and treat people the way we want to be treated anytime surprises occur.
If you choose to come back to us in the future, your planning fee is waived in full for the first 2 years. No pressure, but the door is always open!
Thanks, Craig. You’re a good man and I hope we’ll have the chance to serve you without surprises moving forward.
Also, on behalf of our entire company, thank you for the kind words and vote of confidence. We are honored to serve more than 5,000 specialists around the country – many of them recognized as leaders in their field.
We agreed to take the White Coat editor all the way behind the scenes at Larson Financial because we think the White Coat blog is one of the best educational resources around.
Getting to know the editor on a more personal level gives me the confidence to claim that he’s more knowledgeable than 99% of the advisors I’ve encountered. He asks the hard questions that most advisors don’t want to hear. It was definitely cool to see his passion first hand and we are honored to continue to provide timely guest posts to the blog.
Thanks for this great post. I’m an anesthesiologist and a long-term client (approaching 5 years) of Larson Financial. I like finance more than some but I’ve always appreciated Larson’s ability to free me from having to worry about my portfolio and whether my investments were doing as well as they should be. They do the heavy lifting for me so that I can focus my energy on my family and work.
Just to comment on some previous comments, I can vouch that the advisors I have interacted with at Larson have exceeded my expectations. My wife and I can tell they care about our family and not just our money. Anytime a mistake has happened, they have stepped up immediately to fix it. We even had an incident in our practice where a big oversight happened in our 401(k) plan. It wasn’t Larson’s fault at all, but they stepped up and took responsibility to help keep peace in our practice. Just a firsthand example I witnessed of the quality of these guys.
For what it’s worth, I think you’re missing out, Craig! Hit me up if you’d like a first-hand reference.
There are several DFA using advisors who charge more reasonable fees based on effort not the absurd assets under management fee structure mentioned here. The AUM tradition comes from the ACTIVE management world, but in passive investing the effort is much less time consuming than an active manager and not really related to the size of the portfolio. I pay around 0.1% of AUM for my DFA advisor and as my money grows it will go DOWN, not up.
I’ve definitely seen lower AUM fees for “DFA advisors” but never anything quite that low. Is this some special arrangement you have or one available to the general public?
The low percent is because they only charge an hourly rate and my portfolio is fairly large (3M) There are two companies who have fixed fees and use DFA that I know of and many that charge low AUM fees from 0.25% to 0.45% which would be preferable to someone with a smaller portfolio. While they may.not provide all of the same basket of services Larson does, you don’t really need all of that all the time and can get things like insurance and estate planning done by paying an occasional hourly rate for a fee only advisor for far far less than the ever increasing amounts you pay out to these AUM schemes every year.
That explains it. 0.37% was the lowest AUM fee I’d seen from an advisor using DFA funds, and that advisor requires a $500K minimum account and a $3700 minimum annual fee.
Portfolio Solutions uses DFA And has a very low AUM percent charge. EVANSON ASSETT MANAGEMENT and CARDIFF both charge by the hour and use DFA funds and do not have $3700 minimums
I agree that there are “DFA advisors” who charge a lower AUM fee. Portfolio Solutions does have a minimum fee ($3700 per year). Evanson estimates it’s typical fees at $2000-5000 per year, although they estimate that is 0.05-0.15% of AUM (about the same rate as Betterment which doesn’t offer DFA funds.) They generally require a minimum of $500K (unlike Larson which will start working with you as a resident.) Cardiff estimates their fees at $3000-6000 per year on average and are fixed, not a percentage of AUM. I really like their philosophy about fees:
“Billing at [the levels many index-based advisors bill at] may translate into a $700 to $1,000 hourly rate or more. Passive and index investment managers perform important services, but billing $700 to $1,000 per hour is nonetheless excessive for helping investors formulate a plan, stay on track toward financial goals, and avoid foolish financial decisions. These fees are over and above what most other professionals earn in other high paying occupations like medicine, engineering and the law. It defies common sense that an investor should be penalized by higher fees because they have more assets, or because markets are doing well. Furthermore, unless advisory percentage charges decline over time (highly unlikely), investors will pay much more to their advisors as their assets grow.”
They don’t have a minimum, but a $3000 fee on a $50K portfolio is obviously going to retard growth pretty severely. I’ve had several advisors tell me privately that this is about what it costs to manage a portfolio and make any kind of decent profit (~ $3K a year). I was very surprised to see an asset manager doing it for significantly less (FPL Capital Management AKA financialplanning.com, a long-term advertiser on this blog, who do it for as little as $1K a year.) They also use DFA funds (among others) and as near as I can tell, are one of the cheapest ways, if not the cheapest way, to get access to DFA funds.
I think if you’re paying in the $3-5K range for asset management you’re getting a fair deal. If you’re paying 10 times that, the advisor had better be doing something else for you that you see as providing that kind of value. I understand why Larson’s asset management fee structure starts so high (it really does cost a certain amount of money to manage a portfolio and make a reasonable profit when you’re taking people with basically nothing onto your service), but I think the percentage of AUM charged should decrease in a faster manner than it does. A $5M portfolio at 0.7% is $35K a year under their fee structure. Is it fair to basically “undercharge” you for a few years (it might take a relatively low-paid doc a decade before his AUM fee is more than $3K) and then “overcharge” later to make up for it? Depends on your point of view. It’s obviously worth it to many docs (as evidenced by all the Larson-Love among its clients seen in the comments section.) The truth is that investors looking for the lowest possible fees aren’t usually the same ones looking for a “full-service” advisor like Larson. That’s okay. There are many roads to Dublin. You might have to save a little more or work a little longer if you use a full-service firm, but you also don’t have to learn about all this stuff nor hassle with it, and that can be a real value for a lot of people. I don’t mind people paying a fair price for good advice, but bad advice can’t be priced low enough to be worth it, and that’s most of what’s offered out there from those who bill themselves as financial advisors. I think an investor will likely do well with any of the firms mentioned in this comment. These are some of the very few good guys out there in an ocean of bad guys. The real value offered by a firm specializing in physicians probably isn’t in the asset management, but in the financial planning. There’s nothing keeping you from using Larson for financial planning and FPL or Cardiff Park for asset management if you want to try to get physician-specific “full-services” at a lower price. I suspect most docs who want a full-service firm want everything under one roof though.
We worked with Larson while my wife was a resident. It took them 7 or 8 months to have our life insurance policies in place from the time we said, “go.”
We met with a younger guy a few times, discussed, what seemed at the time (as well as now) very little and cancelled the arrangement.
To “specialize” in doctor’s needs as a financial adviser is a misleading. They simply realize that most docs are likely to have money and perhaps need their services.
I wasn’t impressed with what we got.
Sorry to hear about your experience, Mike. If you’re willing, shoot me an email with some additional info so I can delve further into any quality control issues. It sure shouldn’t take 7-8 months for insurance underwriting. Normally 1-3 max.
To your comment about specialization, I have to respectfully disagree. There are a lot of issues that are mostly unique to physicians – AMT taxation, malpractice, continual contract negotiations, $250k in student loans, having an average of 10+ retirement accounts, Stark laws, etc.
When I was more “green” in our industry, I genuinely thought I could serve anyone well. Quickly learned that this was not the case. I didn’t even know what Stark laws or RVUs were 10 years ago and now 1/4+ of my time is spent dealing with production requirements or ancillary opportunities. Most advisors are unconsciously incompetent when it comes to serving physicians.
To Paul’s comment, I would submit that the asset management is usually the easiest part of what we do but that it can’t be done properly if ignoring the big picture of someone’s financial life. A simple risk assessment is mostly worthless in telling me how a client’s funds need to be allocated. The much more difficult elements are the external factors that cause physicians to lose money or miss meeting their objectives. I’ve come to believe it is impossible for us to do a good job at managing the assets if we don’t have a full grasp of the big picture of what’s going on in the physician’s life. Most money we see physicians losing is not a result of a terrible investment decision, but rather because they haven’t properly coordinated their financial life across board. The accountant, attorney, and planner are rarely in the room together and this inevitable leads to errors that cost tens of thousands of dollars.
Great example: I’ve fixed no less than 30 incorrectly completed form 8606 in the past month. Most of those were done wrong by a well meaning CPA. The end result is that each of these clients would have paid taxes on the conversion of their back-door Roth IRAa. That’s $4,000+ per year in un-owed taxes that many CPAs are missing.
For physicians that take the time to pay attention to this stuff, I have no qualms with them doing it solo or paying a little bit for someone to hold their money. But most doctors don’t take the time to make sure this stuff is being properly coordinated and that’s where we come in at AUM rates that are far lower than any competitor I’m aware of providing the same high level of service. For any high-income specialist, I know we can provide whatever level of service we are providing for a cost that is far lower than their time is worth.
If a physician already knows all of the right questions to ask, he or she doesn’t need me. That’s rarely the case though (I ran into one case like this in 2012). I get paid a little bit to manage assets, and far more to know the right questions to ask.
Example: Most other DFA firms have no clue how to manage the 403(b)s and 457 plans at most teaching hospitals even though that is where a bulk of physician money resides. It took us 2.5 years to crack the behind the scenes red tape to get DFA access in these plans. Even then, we learned something totally new about Fidelity 401(k)s last week that we’ve never seen another firm pay attention to. It was just because we kept asking the hard questions to make our client’s lives easier.
I’m a resident. I had been trying to work with Larson Financial on some disability insurance, but their contact always took forever to get back to me on anything and was not very good at answering my questions. So far, not impressed.
Also, several of my colleagues who were interested in Larson felt the same way and have been turned off by it.
It’s because residents are relatively broke, and they’re looking for the big payout. Did he just say “asset management” is the “easiest thing we do”??? That’s scary! Because they collect the fees whether they make or lose money.
I am a Surgeon and Larson Financial Group and its affiliates have been extraordinarily helpful in reviewing the options and rates available for our disability insurance ensuring that we get the optimal coverage available. They set up a discount for our practice and saved me 30% of the premium.
My wife and I are both physicians and thought we would share our experience. At first we were skeptical. We shopped out a bunch of companies and got several quotes on our own. This process took hours and days. Then we went to Paul Larson. He showed us several quotes and directed us towards the best option for our situation. He was also very knowledgeable about the myriad riders and details that can make this a very complex process with potentially long term consequences. We still crosschecked him. We spent the next several weeks reevaluating everything. After wasting a lot of time, we finally realized Paul was right all along. Hopefully our story will save you time — just do what Paul says. Or double check Paul, and still end up doing what Paul said in the first place. Either way, you can’t go wrong!
My husband & I have been clients for a couple of years and have been very impressed with the level of service and expertise offered by Tom & Andy. We, too, were skeptical at first because of the distance from their offices to our home, but our relationship exceeds anything we ever had with our local advisors. Larson has saved us money, made us money and become trusted advisors and friends. Even our accountant commented that he was impressed.
They have truly gotten to know US and our values and plan for our financial future with that in mind–even when it has repeatedly meant giving money away or purchasing real property in lieu of investing.
Highly recommend.
I am a physician and have been working with Larson Financial for nearly 2 years. I started working with them towards the end of my residency. I had spent a lot of time researching other firms and advisers and had actually gone with another adviser earlier in my residency, only to get several accounts set up and life insurance and never to hear from them again. I’m sure many folks have had this experience.
Also during residency I started a website for urologists to help create a more efficient way for employers and job seekers to connect without having to go through expensive 3rd-party recruiters. As I started that site, I became increasingly aware of general financial illiteracy amongst many physicians. The transition from residency/fellowship to working as a physician is an important time to make sure you have your financial house in order. I had long wanted to team up with a reputable financial firm to help develop educational content for my site. At the same time I was very cautious in whom I recommended. After meeting Paul Larson and researching Larson financial, I felt that they would be a good fit. Though, I didn’t want to recommend a firm with whom I didn’t trust with my own finances. After having worked with Larson Financial for over one year and being very pleased with all of their work, I started collaborating with my adviser, Lauren Law, and Larson Financial to write informative content for my site in the form of guest blog posts. So my disclosure for this post is that I use Larson financial to help me manage my finances and they provide content for my website. I do not receive any financial remuneration.
My wife and I have been very pleased thus far working with Larson. It is very obvious that Lauren cares much more than just about our finances but about the goals we have in life and how to best design a way for us to achieve them. I personally have a lot of interest in finances and business, but I realize my weaknesses and know that I need someone that is going to keep a close eye on my finances and make sure we’re doing the things we need to be doing. Lauren has been exceptional in her timeliness in following up with me on any questions I have. What I appreciate most is that I always receive an email, following any conference call or meeting we have, that details all we talked about and sets out our plans and objectives moving forward. I am sorry to hear about some of the experiences mentioned in previous posts, but Lauren and the folks at Larson have always followed through on everything they have said they’re going to do. Lauren has helped several of my colleagues and they all have been pleased and thank me for referring them to her.
At the end of the day, I trust them to help me in managing my finances and planning for my future. If I didn’t, I wouldn’t have them providing content for my site. If anyone would like to send me an email with particular questions about my experiences with Larson, you can email me: [email protected]
I have been a practicing surgeon for more than 10 years in a busy academic practice, and although I understand the importance of social media have been somewhat slow in becoming involved in the process. As the first time I have ever contributed to a blog, you need to know that it is because I am a big-time believer of Larson Financial and specifically my personal contact, Lauren Law.
Concrete savings and gains are only part of the huge gains that my wife and I have seen. The ability to trust in someone who: double checks specific donations to an SEP and individual IRA / conversion to ROTH; specifically evaluating previous transactions and coverting them to less costly funds–AFTER a specific date to avoid further charges; periodic and timely communication as well as always quick followup; ….these are just some specific examples.
My relationship and experiences with Larson have truly been exceptional and am happy to communicate with anyone via [email protected]
As a CPA, I was initially skeptical when my husband (a physician) suggested we attend a dinner where Larson representatives were presenting their breadth of services (especially as I have given and attended numerous similar events in my 12 years in public accounting and am all too familiar with the practice of the “elevator pitch”). We have now been working with Larson for 5 years and are quite impressed with the financial services tailored specifically to meet the unique needs of physicians. Initially, we were extremely pleased with and grateful for the risk management and insurance advice the firm provided for us during residency for no charge – as mentioned in the above post. As two people who DO see personal finance and investing as a hobby that is a fun way to spend their time – we too have found ourselves with multiple accounts and complex financial issues to manage and little time to do so as life gets busier and busier. The longer we work with Larson, the more impressed we are by the firm’s commitment to their clients and to making a difference in the world. They have absolutely saved us time and money in the last 5 years. We have and will continue to recommend Larson to physician and dentist friends and family.
I have been using Larson for the past year and a half. I attended a dinner with Randy Larson and some other folks and liked what I heard. My past experience with “financial planners” was fairly dismal. Therefore, I would talk to my dad, who is retired and does his own financial planning as a hobby/interest. I would apply the principles he taught me … with very mixed results. I simply didn’t have time to do my own investing. I hired a fellow from our church, who was a day-trader and aside from the time it took to do taxes with that many trades, just about broke even.
When I started meeting with the Larsons, I immediately felt like they approached financial matters like I approach medicine, with fervor and with the patient (client) as their first concern. As I have met with them more during the past year, I have never felt pressured to contribute more to this or that, to re-direct funds from here to there or any of the common ways financial people try to increase their fees.
I think there are several things which set this group apart. 1) they are really good at their job. They really search for “hidden” benefits such as a fund which allows you to withdraw principal instead of just gains from your retirement vehicle. 2) the quarterly report I receive is clear and distinguishes real from unrealized gains, lets me see how I’m doing and (as important)how they are doing. 3) the Larson brothers are clearly men of faith. Unlike my “church contact”, they blend their faith with extreme competence and social action. The Larson Foundation has a model which I have seen work in other ways … “teach a man to fish”. They help start businesses which can designed to be locally managed, locally produced and self-sustainable. Regardless of one’s beliefs, it would be difficult to find fault with the good works which this group does, without hitting anyone over the head with a Bible. 4) They manage everything, coordinating taxes, retirement, investments, planning for college, houses, etc and even how to blend my fiance’s finances with mine.
In short, a busy physician cannot do financial planning adequately by him/herself. The Larson group is an excellent group to work with. I recommend them as strongly as I can to all of my physician friends.
My husband and I have been using Larson Financial for nearly 5 years and we have recommended our advisors Todd DeKruyter and Tom Martin to several colleagues and each of them has thanked us for giving them a solution to their financial questions. I really trust our advisors, but we do take comfort in that they have all the intel of Larson financial behind them. You’re not hiring one guy to make all the decisions and you’re never gonna get a call from your advisor with a “hot tip on a stock” and claim to make you millions overnight. They are here to help your financial stability and long term gains. They learn your goals- (do you want to save enough to pay for kids college? what about post graduate studies?).
When we were building a home it was nice to never have to worry about where to get they best lot loan, construction loan and final mortgage. I’m sure each advisor is different, but in terms of response time- I have never had to wait to get in touch with someone when I needed. I love that my advisors are so responsive and they are not billing me from the time they pick up the phone!
I came to know about Larson Financial about 3 years ago through a colleague. At that time, the hospital administration was putting together a new compensation package for us and we decided to use Larson Financial help us negotiate with our administration. After having seen their product during that process, I decided to use them for management of my personal finances and I have been more than satisfied. I am based in Arizona but I deal with the home office in St. Louis and it has been a seamless process. I met with Paul Larson during the process of negotiating with our hospital and now meet with Jeff Larson regularly to discuss my quarterly reports. Having worked with 3 other financial advisors in the past, I certainly feel I have met the kind of advisors I was always looking for. They definitely care about more than just money and are trustworthy. I also work with the CPA who is part of their team and I feel that they pay for themselves in reducing taxes and saving a ton of time. I enjoy working with them because they are thorough, organized, responsible and do what they say they are going to do. For an OCD person like me, they serve my needs perfectly.
I have worked with Larson Financial for almost 2 years now and have been extremely impressed with how thorough the firm is managed. I have never had a reason to suspect my money is not being invested wisely; in fact, I believe they are an incredibly trustworthy firm, and I have never second guessed my decision to work with them. Another great thing about this firm is that I have never felt or been treated like a “number.” My financial planning with Larson has been personalized to my goals, and I have always been treated respectfully in my dealings with them. When I have a question or two regarding management of my money or in any other matter, they have always been prompt in their response and patient in explaining why they recommend managing my accounts in a certain way. I have spoken with other colleagues who have used other firms, and the rate that I am charged is fair for the market; but in addition, the freedom I have in allowing them to manage my money with good return on my investments and allowing me to use my time as I want rather than worrying over the market has validated that what I pay to the firm is easily paid back to me. This is a firm that has earned the reputation of being trustworthy, personal, and exceptional in investment strategy. I highly recommend them.
My wife and I have worked with the Larson group for the past three years. We were able to meet with a local representative in our home to review our existing portfolio and insurance coverage. Immediate cost saving were recognized as a single doc (rather than group rates) for our insurance coverages. Paul Larson has always been available when a quick question arises and I have never felt any question or request is beneath him. I hold a great deal of trust in Paul and his staff (Trina and Melissa) to not only look out for our best interests in investments but also assist in new ventures. We have recently set up an LLC with Larson’s assistance and found the process seamless. Since our portfolios inception, Larson’s fees have been easily been covered by gains. The staff regularly reviews my 401-K despite the management of such from an outside firm (due to a corporate arrangement). I routinely refer friends and colleagues to Paul Larson personally as I continue to be impressed by his attention to detail and values.
I am currently a General Surgeon for the United States Air Force stationed abroad. I started working with Larson Financial a few years ago near the end of my residency. I would say that finances and management are hobby of mine and my experience was probably a little more broad than most when I met the Larson group. I had multiple financial advisors, insurance advisors, brokers, attorneys, etc. in my life as I progressed through the financial stages. After meeting with Larson Financial on several occasions what surprised me the most was that they had a solid and complete understanding of the financial package for an individual, specifically physicians.
Physicians aren’t just a group of people who have more money than most. There are many complexities within our portfolios, taxation, liabilities, practices, and plans of which I had no knowledge even with my history of being involved deeply with finances. Where Larson Financial makes the greatest impact is in that they are not interested in selling you a “Larson product”, rather, each portfolio and plan is designed around each client… there is only a “Doctor Smith Family” plan or “Doctor Jones Personal” plan.
Furthermore, from the standpoint of a concierge financial service I have experienced everything from simple assistance with taxes , insurance, and investments to my advisor essentially orchestrating and negotiating the refinance of a home I didn’t live in that was 10,000 miles away for my current location. During this process I simply provided affirmations and signatures and this process was completed with ease and in the best way possible financially. Someone above commented that there was some delay in finalizing insurance plans with their Larson agent. I would say that any prolonging I have experienced was due to the Larson group finding the best possible outcome and deal for me by comparing and even having insurance companies (etc.) compete for my policy… this is a delay I will gladly wait on. Larson cares more about their clients than their money as evidence by the fact that they take a special interest in meeting even the low income or early income young physicians finishing residency. I have encountered no more trustworthy group of financial advisors with whom I have worked.
Furthermore, this truly is a one-stop-shop for financial needs. To anyone who has commented above or will comment below: if you’re under the impression that the “concierge service, one-stop-shop for financial needs ” means that you won’t pay for an attorney, tax preparation, or closing costs for a mortgage, then I would recommend you evaluate your naivety with the financial process. The concierge service included is such that allows you access to the resources trusted and proven by Larson Financial so that they can provide these to their clients in a streamlined, goal directed, and cost-effective fashion. Bottom-line, if you use an attorney to set up an LLC, expect to pay attorneys fees—that should make sense to you—but expect that the attorney you are working with is on your side and providing you the best care and fiscal deal, as Larson financial would otherwise not recommend them.
From the standpoint of cost, yes, advice costs money and management costs money, but not having to think about the safety of my finances, future, and investments is worth every penny that I have paid and that has subsequently been saved in tax savings and time management. Never has Larson acted on their own accord without my consent or a discussion, and each time we discussed plans they have followed through with exactly what they say they are going to do, NO games.
I think as physicians probably our greatest mistake is believing that we are smart enough to manage this process. Smarter enough to understand?, yes… but smart enough to do by ourselves and get the maximum benefit?, NO! Rest easy in knowing that working with Larson gives you the freedom to enjoy your practice, maximize on your income, minimize your debts and liabilities, and have the peace of mind that the right thing is being done for your finances. These are a trustworthy group of people with whom I have entrusted my and my family’s financial future. I went in very skeptical, and admittedly only attended the dinner for the free meal—as I “had it all figured out”—However, when the rubber met the road, Paul and his team proved to me that they knew exactly what they were doing and could do even more than I expected. When it finally hit home was when my most trusted financial advisor in my life, my father, said to me “if I had people like Larson 30 years ago, I’d be in a different place.”
I’m just one client, with no reward in promoting Larson Financial or “kick-backs.” I recommend them to all of my friends because I want my friends to have the same peace and prosperity. As you read these comments, try to steer away from individuals’ pride and complaining and look at this company objectively from the standpoint of cost and savings and ask yourself this: What is the price for the mental and emotional freedom, as well as peace of mind with your finances worth to you? Something tells me you’ll find that it is worth every dollar you save working with Larson.
Leland Webb, MD
General Surgeon, USAF
I have worked with my Larson advisors for almost 5 years now, and Larson has been nothing but a perfect fit for me and my family. The medical profession is one that requires you to throw all of yourself into it, and that often leaves little time for other things, like managing your finances or even investing the time to learn how to handle them. But my Larson advisors have proven to be trustworthy partners – they listened to my goals and have worked hard to help me accomplish them and show me great progress. It’s nice to work with someone who doesn’t push you in one way or another, but rather does what they say they’re going to do and always keeps the needs you’ve outlined at the forefront. They have worked with my accountant each year to ensure tax planning is being addressed year round, have kept in touch with my attorney to file crummy letters on my trusts, my church to coordinate equity donations, etc. – this goes much further than just the Larson team – they coordinate my whole team of all kinds of advisors to make sure that nothing gets left out and everyone is on the same page. Having a team I trust to take care of these matters not only gives me confidence, but leaves me a lot more time to spend doing other important things…like enjoying my family. And that’s just my experience with my advisor team; my colleagues have good experience with others and everyone my wife and I have interacted with are genuinely good people. Paul talking with me about the company’s charity efforts blows me away – you can’t put a price on that kind of integrity. I only wish I had met Paul, Jeff, and company many years earlier.
As a fairly new client of Larson Financial (2 years) I have had nothing but positive experiences with them. Our advisor is available pretty much 24/7 (even answers emails and texts at 9pm) and meets with us whenever we are able: during off hours like 7 and 8 pm weeknights. She is very flexible and understanding of physician’s work schedules.
She has been involved in EVERY aspect of our financial decisions (especially coming straight out of fellowship) and has mortgage hunted for us, insurance quote hunted, and even changed my name on my accounts when i was married! Both my husband and I trust them with our finances and have had no reason to doubt the services they have provided for us so far.
They do have a tiered payment system, however, we have found that what they have saved us in time, savings, and taxes has more than covered what they bill us. I recommend them to all of my fellows and residents that are interested, and so far have not heard that anyone has been disappointed.
Howdy! This is kind of off topic but I need some guidance from an established blog. Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about making my own but I’m not sure where to begin. Do you have any ideas or suggestions? With thanks
It’s easy to set things up. For someone good at figuring it out himself, just start googling stuff. Now making money at it and actually getting people to read it, that’s the hard part.
I am an attorney and practice in the area of estate planning where I have had the opportunity to work with Tom Martin and other planners at Larson Financial, as we have mutual clients. I know Tom Martin, both personally and professionally, and I have been impressed with his attentiveness to his clients. He is sincerely interested in his clients and their families. Tom strives to keep the best interests of his clients in mind, while trying to provide the best value possible. I have truly enjoyed working with him and the other planners at Larson Financial.