Reducing the fees associated with retirement planning is one step that can help to maximize returns. MDRN Capital, a full-service firm that provides financial planning for the modern world, is helping clients in that area by providing complete and personalized virtual retirement planning.
“My vision for MDRN Capital was a completely virtual firm that could provide the convenience clients wanted while also meeting their ongoing investment needs,” explains Aaron Cirksena, Founder and CEO of MDRN Capital. “But I also knew it could deliver far more than convenience because going virtual would do away with many of the costs associated with having a physical office. MDRN Capital’s virtual model empowers an environment in which we could serve our clients more efficiently and pass the savings on to them.”
MDRN Capital’s clients have fully embraced the model. They enjoy the added convenience of virtual retirement planning and appreciate the cost savings Cirksena and his team offer.
“Adopting a completely virtual model allowed us to do away with the overhead expenses that stem from operating a brick-and-mortar office,” Cirksena shares. “As a result, we are able to create a lower fee solution for our clients. When compared with a typical advisor operating under a conventional model, our investment management fees on the entire client portfolio tend to run 30 to 40 percent lower on average. Additionally, the savings we create allow us to add services like estate planning, tax planning, and tax preparation for our clients at no additional cost.”
Embracing the methods of the modern world
The vision for MDRN Capital emerged during the COVID-19 pandemic, when Cirksena was forced to connect virtually with his financial clients. As the effects of the pandemic waned and offices opened again, he assumed his clients would be eager to get back to in-office meetings. What he found, however, was that his clients had come to appreciate the convenience of virtual advising.
“My clients expressed preferring the comfort and convenience of virtual meetings to the hassles associated with in-office advising,” Cirksena recalls. “They didn’t miss sitting in traffic and searching for parking spaces. Even the clients who lived only a few minutes away told me they would rather meet via Zoom than join me for a face-to-face meeting in our nice Class-A office space.”
Cirksena saw the obstacle as an opportunity. Rather than finding ways to entice clients back to the office, he decided to take his services to them. That decision led to the launch of MDRN Capital.
Eliminating high management costs
Investors will typically pay between 0.2 percent and 5 percent for management fees. Actively managed funds typically require higher fees, while those that are passively managed demand less.
Even a small reduction in management fees can have a significant impact on retirees seeking to maximize investment returns. For example, $250,000 earning 7 percent over 20 years will grow to $967,421.12. Factor in a 1 percent fee, and growth is limited to $801,783.87, but raising the fee to 2 percent causes earnings to fall to $721,034.70.
The MDRN Capital model minimizes management fees, maximizing retirement earnings. It also makes meetings more efficient, giving advisors more time to optimize their clients’ strategies.
“A virtual model allows our meetings to be direct and focused,” Cirksena says. “You and the MDRN team are face-to-face on each call, with no distractions or barriers. Our platform provides clear and easy access to all of the documents we need on shared screens. It’s reliable real-time financial planning that meets you where you are.”
Creating a comfortable advising environment
Virtual advising fosters a convenient and efficient advising environment and ensures Cirksena’s clients are comfortable throughout the process.
“The meetings we have with our clients are establishing a vision for their future,” Cirksena says. “For that type of important financial conversation, we want our clients to be comfortable enough to share from their hearts. Virtual conversations facilitate that level of comfort. Our clients are at ease, sitting in their favorite chair in their home or their office, drinking their favorite coffee from their favorite mug. We could never orchestrate that with in-office meetings, no matter how nice our office was.”
As fiduciaries, Cirksena and his team are committed to prioritizing their clients’ best interests. The virtual model they have adopted allows them to do that on many levels, providing a platform that minimizes inconvenience while maximizing returns. It’s an approach that empowers investors to thrive even in the face of modern challenges.
