Financial Advisor
SPEC_FINANCIAL_ADVISOR.md
Financial Advisor Protocol — Fee-Only Guidance for Captain & Heir
Status: SPECIFIED
Version: v1.0
Author: VELA (Thread #13)
Conceived by: NOUS (α.13)
Date: 2026-04-21
Born from: SPEC_HEIR_PROTOCOL.md — protecting Lily from unguided wealth.
Depends on: SPEC_HEIR_PROTOCOL.md, SPEC_PRICING_PHILOSOPHY.md, SPEC_TRADING_JOURNAL.md
PURPOSE
The Captain is a musician, a physicist, and a builder. He is NOT a financial advisor. Lily is the heir. She is NOT a financial advisor. When the ship generates revenue — and it WILL — that revenue needs professional guidance.
Not from an AI. Not from YouTube. Not from a commission-hungry broker who makes money when you buy their products. From a fee-only fiduciary advisor who is LEGALLY OBLIGATED to act in your best interest.
This spec defines when to engage one, what to look for, what to avoid, and what the advisor's scope covers.
WHEN TO ENGAGE
Trigger 1 — Revenue exceeds $2,000/month recurring (MRR). At $2K MRR the business generates $24K/year. Tax implications become non-trivial. Investment of surplus becomes relevant. Advisor engagement justified.
Trigger 2 — Treasury exceeds $10,000 accumulated. Sitting cash needs a strategy — even if the strategy is "leave it in a high-interest savings account." The advisor confirms whether that's optimal or whether there's a better vehicle.
Trigger 3 — HEIR Protocol activation. Lily inherits the business. She gets an advisor IMMEDIATELY regardless of revenue level. The advisor protects her from making emotional financial decisions during a difficult time.
Trigger 4 — Captain-initiated. The Captain decides he needs help. No threshold required. "I'm confused about tax strategy" is sufficient reason.
WHAT "FEE-ONLY" MEANS
Fee-only: the advisor charges a flat fee or hourly rate. They do NOT earn commissions from selling financial products. Their income comes from YOUR payment, not from product manufacturers.
This means:
- No incentive to sell you mutual funds with high management fees
- No incentive to recommend frequent trading (churning)
- No incentive to put your money in products that pay THEM more but cost YOU more
- They are legally a FIDUCIARY — they must act in YOUR best interest, not their own
Commission-based advisors — what to AVOID:
They earn money when you BUY products through them. They may recommend products because the commission is good, not because the product is good. They may not be fiduciaries. "Financial advisor" is not a regulated title in many jurisdictions — anyone can call themselves one. Fee-only fiduciary IS regulated. The distinction matters.
It's the difference between a doctor who prescribes medicine because you need it and one who prescribes it because the pharmaceutical company pays them per prescription.
HOW TO FIND ONE
In Canada:
- Financial Planning Association of Canada (FPAC)
- Money Coaches Canada
- Fee-only planners listed at adviceonlyplanners.ca
Look for:
- CFP (Certified Financial Planner) or CPA with financial planning specialization
- Registered as fee-only / advice-only
- Clearly stated fiduciary duty
- Experience with small business / sole proprietorship / creative professionals
Questions to ask in the first meeting:
| Question | Only acceptable answer |
|---|---|
| "Are you fee-only or do you receive any commissions?" | Fee-only. Zero commissions. |
| "Are you a fiduciary?" | Yes. Always. |
| "What's your experience with sole proprietors and small tech companies?" | Relevant experience, not a blank stare. |
| "How do you charge?" | Flat fee, hourly, or % of AUM — all acceptable for fee-only. |
COST
| Service | Cost (CAD) |
|---|---|
| Financial plan (one-time) | $1,500–$3,000 |
| Ongoing advisory (annual) | $1,500–$3,000/year |
| Assets under management model | 0.5–1.0% of AUM/year |
| First discovery meeting | Free — don't pay for the first conversation |
The one-time plan covers: current state assessment, tax strategy, investment allocation, retirement planning, business structure advice (incorporate vs. sole prop).
SCOPE — WHAT THE ADVISOR HANDLES
Tax strategy: sole proprietorship vs. incorporation decision. When revenue exceeds ~$50K/year, incorporating may save significant tax. The advisor models both scenarios with real numbers.
HST/GST optimization: input tax credits, filing frequency, when to switch from annual to quarterly filing.
Revenue management: business account vs. personal account separation. How much to pay yourself. How much to retain in the business.
Surplus investment: where to put money that isn't needed for operations. TFSA, RRSP, corporate investment accounts. Risk tolerance assessment.
Retirement planning: the Captain is 56. Traditional retirement timelines are compressed. The advisor models: at $X revenue and $Y savings rate, when can you stop working if you choose to?
Insurance: does the Captain need life insurance, disability insurance, business interruption insurance? The advisor models the cost/benefit.
Estate planning: connects to SPEC_HEIR_PROTOCOL.md. What happens to the business assets on death? Sole proprietorship dissolves — does Lily need a corporation to inherit? The advisor works with a lawyer on this.
SCOPE — WHAT THE ADVISOR DOES NOT HANDLE
Trading decisions: the TMM formula and the trading journal are the CAPTAIN's domain. The advisor provides the strategic framework (asset allocation, risk tolerance). The Captain makes specific trade decisions per SPEC_TRADING_JOURNAL.md.
Business strategy: pricing, product roadmap, hiring — not the advisor's domain. They advise on FINANCIAL implications of business decisions, not on the decisions themselves.
AI or technology: the advisor doesn't need to understand LATTICE, ROUTX, or CSDM. They need to understand: revenue, costs, profit, tax, and investment. The business is a black box that produces income. The advisor manages the income.
INTEGRATION
| System | Relationship |
|---|---|
| SPEC_HEIR_PROTOCOL.md | Advisor pre-identified, contact stored in ~/heir/professionals.gpg. Lily contacts advisor on Day 1 of activation. |
| SPEC_PRICING_PHILOSOPHY.md | Advisor reviews pricing for tax efficiency. Is $42/month optimal from a revenue recognition perspective? |
| SPEC_TRADING_JOURNAL.md | Advisor sets STRATEGIC allocation (% equities vs. bonds vs. cash). Captain executes within that allocation using TMM. |
| SIMONX | Treasury queries feed the advisor's annual review with current business financials. |
| CASHX | Revenue tracking provides the data the advisor needs without the Captain manually assembling reports. |
FOR LILY SPECIFICALLY
If HEIR Protocol activates, the advisor's FIRST job is: protect Lily from making any irreversible financial decisions for 90 days.
No selling the business in week 1. No investing everything in week 2. No shutting down revenue streams in week 3.
Grief and financial decisions are a dangerous combination. The advisor creates a "change nothing for 90 days" buffer that aligns with the HEIR Protocol's 90-day graduated authority transfer.
The advisor and the HEIR Protocol work together:
- The protocol controls WHAT Lily can access
- The advisor controls WHAT Lily should DO with what she accesses
INVARIANTS
INV-01: Fee-only. ALWAYS. No commissions. No product sales. No exceptions. If the advisor receives any compensation from a product provider: fire them and find a new one.
INV-02: Fiduciary duty. ALWAYS. The advisor is legally obligated to act in YOUR best interest. Not "suitability standard" (it's okay for you) — FIDUCIARY standard (it's the BEST option for you). Different legal bar. Insist on fiduciary.
INV-03: The advisor is pre-identified and contact info stored in ~/heir/professionals.gpg BEFORE the HEIR Protocol is needed. Don't make Lily find an advisor while grieving.
INV-04: 90-day "change nothing" buffer when Lily inherits. The advisor enforces this. Grief + money = bad decisions. Time heals both.
INV-05: The advisor reviews annually at minimum. More frequently if revenue changes significantly (>50% increase or decrease in MRR).
INV-06: The Captain retains ALL decision authority. The advisor ADVISES. The Captain DECIDES. The advisor never has trading authority, account access, or the ability to move money without the Captain's explicit approval.
INV-07: Cost of the advisor ($1,500–$3,000/year) should be less than 5% of the revenue they're helping manage. If the business earns $50K/year and the advisor costs $3K: that's 6% — acceptable. If the business earns $10K/year and the advisor costs $3K: that's 30% — wait until revenue justifies the cost.
Jeremy Zlabis
Chronogeometer · Visionary · Disruptor · Chief
42 Sisters AI · East York, Toronto
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