Fee-only advisors do not accept any fees or compensation from brokerage firms, mutual fund companies or insurance companies.
- Compensated solely by their clients.
- Fewer inherent conflicts of interest
- Fee structure varies by advisor—annual retainer, hourly or a percentage of your investment assets
Fee-Based: compensated by a combination of advisory fees and commissions on the sale of financial products that may be used to implement their advice
Commissions can include:
- Upfront sales charges, surrender charges or trailing commissions including 12b-1 fees on mutual funds
- Commissions on the sale of annuities or life insurance policies
Commission-Based: compensated by commissions only
OUR APPROACH
We are one of the few Fee-Only advisory firms in the nation currently implementing a Flat Fee structure.
Instead of charging a percentage of assets under management, we utilize a cost-effective compensation structure by charging a fixed dollar amount (flat fee).
Annual advisory fees range between $1,000 and $5,000, depending on client’s desired level of service and customization.
ADVANTAGES
Objective advice
Eliminates conflicts of interest
Transparency of interest
Clients are never “locked” into an investment or advisory contract
Total portability – Clients can simply “de-link” through custodian
Account values increase, fees stay the same
High-net worth investors are not penalized for having large accounts
For example, with a $1,000,000 investment, the low cost of our advice is only $1,000 annually vs. the industry average of $10,200 (1.02%).
Over a 10-year period, with compounding, that means $177,138 more in your portfolio working for you.
- Industry Average Advisory Fee (1.02%)
- Net Portfolio Balance
- $1,000 Flat Fee
- Net Portfolio Balance
Hypotheticals are based on an initial investment of $1,000,000 in an equity index fund (VTI) over a 10 year period (01/01/2007-12/31/2016). Portfolio fees were reduced quarterly.