How Family Billing Saved One Family $65,000 Per Year
The following story is a work of fiction, but it does represent the potential savings that multi-generational families can benefit from when working with the Hurlow Wealth Management Group. This case study examines how family billing across three generations results in an annual fee savings of almost $65,000.
How Family Billing Saved One Family $65,000 Per Year
by T. Claire Kest, CFP®, CAP®
Meet the Adlers – The Founding Generation
Albert and Amelia Adler founded the successful Adler Leasing Company in 1994. They began their relationship with Hurlow Wealth Management Group in 2010, starting with an initial investment of $1 million, which was subject to a standard 1% management fee. Between 2010 and 2020, they invested an additional $100,000 annually, using the proceeds from the contract sale of their business.
Through effective investment management and their consistent contributions, their portfolio is now worth over $10 million.
- Expected fee for Albert and Amelia: 0.72% or $72,000
- With family billing: 0.51% or $50,793
- Savings $21,207
Albert and Amelia have three children: Becky Bailey, Clara Clark, and Debbie Davenport.
Becky and Bobby Bailey:
Albert and Amelia's oldest daughter and her husband, built a thriving chain of restaurant franchises. In 2015, they initiated their relationship with Hurlow with a $500,000 investment. Planning for succession, they arranged to invest an additional $5 million upon selling their business in 2025. Their portfolio is now worth $ 6.4 million.
They have three children in their 20's (Billy, Brea, and Blaise), and helped to fund accounts for each of them with a $100,000 introducing the third generation to Hurlow Wealth Management Group.
- Expected fee for Becky, Bobby, and their children without family billing: 0.78% or $52,200
- With family billing: 0.51% or $34,170
- Savings $18,229
Clara and Carson Clark:
Clara (the Adler's middle daughter) was driven by her desire to make a difference and became a teacher. She married a school superintendent, Carson Clark. At the encouragement of her parents, she and her husband became clients in 2017, investing $500,000. They raised two children who also value hard work and education. Charlie and Caroline (now in their 20s) funded their Roth IRA accounts with the proceeds from summer jobs and are now beginning their own careers in the teaching profession. Caroline now has over $50,000 saved, while Charlie has $25,000.
The value of Clara and Carson's portfolio is now approximately $900,000.
- Expected fee for Clara, Carson, and their children without family billing: 1.0% or $9,750
- With family billing: 0.51% or $4,952
- Savings $4,798
Debbie and Drew Davenport:
When attorney Drew Davenport married the Adlers' youngest daughter Debbie, he brought his $750,000 investment to Hurlow Wealth Management Group in 2022. His son from a first marriage, Dillon is only 15, but he has already begun his financial journey with a $7,000 investment into a Roth IRA. Following Drew's father's tragic passing this year, he inherited $2 million.
- Expected fee for Debbi, Drew, and their child without family billing: 0.86% or $27,656
- With family billing: 0.51% or $16,289
- Savings $11,291
Emily Edwards (Drew's Sister):
Drew served as the executor of his father's estate. When his sister, Emily Edwards, asked Drew for a financial advisor recommendation, he described the benefits of working with the Hurlow Wealth Management Group. In addition to the stellar investment returns, he now feels a greater sense of clarity around what he owns and how his money will grow, and he has more confidence in making financial decisions. Recognizing all the benefits, including family billing, Emily became a client and invested her $2 million inheritance, as well as approximately $500,000 she had saved in her 401(k).
- Expected fee for Emily without family billing: 0.88% or $22,000
- With family billing: 0.51% or $12,698
- Savings $9,302
Summary
With over $23 million now under management across this extended family, the Adler family is benefiting greatly from the family's billing strategic approach, which has reduced their effective fee rate from 1% to just 0.51%.
| Family Name | Assets Under Management | Expected Fee | Actual Fee | Savings |
| Adler | $10,000,000 | $72,000 | $50,793 | $21,207 |
| Bailey | $6,700,000 | $52,260 | $34,031 | $18,229 |
| Clark | $975,000 | $9,750 | $4,952 | $4,798 |
| Dillon | $3,207,000 | $27,580 | $16,289 | $11,291 |
| Edwards | $2,500,000 | $22,000 | $12,698 | $9,302 |
| Total | $23,382,000 | $183,590 | $118,764 | $64,826 |
This translates to annual savings of almost $65,000 for the Adler family to receive comprehensive wealth management services. The Adler family's journey with the Hurlow Wealth Management Group demonstrates how the family billing approach creates both financial efficiency and peace of mind across generations. If you would like to see how your family can benefit from family billing, CLICK HERE to schedule and introductory call today. For over two decades, the fiduciary financial advisors at Hurlow Wealth Management Group have helped clients find clarity, make decisions with confidence, and feel comfort in retirement.