Understanding Fees

Fees are frequently a concern with persons seeing to hire a new advisor.  I will adhere to transparency so that you are clear about how much you are paying so you can evaluate if my service is worth the fee.  This is all about you.

Here’s a tidbit for you: Most investment advisors charge close to the same asset management fee.  After all, we all know the marketplace.  You want to know not only what the advisor or firm is charging, but also the investment managers as well.  I’ve seen firms charge 1.5% AND place clients assets in funds that are charging 1-3% in addition.

Portfolio Management

I charge a sliding scale fee based on the total amount of money under management.  All fees are negotiable.  The minimum annual fee is $15,500. There are no hidden fees.  There is no hidden compensation.   Investment managers charge fees in addition to my fee; therefore, I work with investment management companies that are client centered who have very low fees.  Investment management is a commodity, therefore prices are driven down as more people enter the marketplace.

My portfolio management fee schedule is as follows:

  • $0 – $1,000,000                        1.5%
  • $1,000,001 – $3,000,000        1.0% plus above
  • $3,000,001 – $5,000,001         0.85% plus above
  • $5,000,001 +                              0.75% plus above

As an example, the calculation for an account valued at $2,500,000 would be:

  • $1,000,000 @ 1.5% = $15,000
  • $1.500.000 @ 1.0% = $15,000
    •            Total: $30,000 (1.2%) + investment company management fees.

Clients who engage portfolio management services receive comprehensive planning services as well.

Modular Consulting Services:

I also offer our modular or general consulting services that are provided on a fixed or hourly fee basis in accordance with the following fee schedule:

Fixed Fees: A fixed fee of $6,000 is assessed where a client contracts me for broad based financial planning or consulting services. Under such arrangements, I require payment of an initial retainer of 50% of the estimated fee in advance of services rendered, with the balance due on presentation of the financial plan. A $6,000 plan entails approximately 24 hours which includes:

  • The initial information gathering session
  • The financial plan preparation
  • The subsequent action plan presentation meeting and discussion with client,
  • One follow-up meeting

Hourly Fees: If you have specific needs such as business coaching, I assesses an hourly rate of $250 for consulting related services and/or modular financial planning. Such fees are due on completion of the services; however, other fee paying arrangements may be established depending on the amount of time required to complete the requested services. All such terms will be clearly set forth in the executed agreement for services.

Details about all services and fees can be found on our Form ADV which can be downloaded by clicking this link.  Form ADV