Aligned interests, low costs

We charge a fee for managing your investments:

• We get a raise when your account increases in value and we take a pay cut if your account declines in value. Our interests are aligned with your interests.
• We do not charge a commission or receive any payments from product providers.
• We do not pay or receive referral fees.
• We do not charge by the hour or for completion of a project.
• We are compensated uniquely for investment performance.

We maximize the investment return to your account

The typical managed account provided through a broker charges approximately 2.00% to manage funds. This expense consists of a management fee that runs from 80 to 125 basis points (.8 to 1.25%) and mutual funds expenses that tack on another 75 to 125 basis points (.75 to 1.25%). An account that pays commissions at a full service brokerage firm usually has costs of at least 1.00% per year depending on turnover and asset composition.

The typical bank or independent advisor will charge a management fee of 80 to 125 basis points (.8 to 1.25%). Because these accounts make limited use of mutual funds they will usually reduce costs relative to a broker, although they may incur a custody fee of around 10 to 15 basis points (.1 to .15%).  The total cost of an individually managed account will typically be north of 1.00%.

We charge 50 basis points (.50%) to manage ETF (exchange traded fund) accounts and we charge 65 basis points (.65%) to manage accounts with individual securities. ETFs typically charge a management fee of 15 to 40 basis points (.15 to .40%). The cost for us to manage a diversified portfolio will usually not exceed 75 basis points or .75%.

We charge our fees in arrears. Fees come directly out of the account unless other arrangements have been made.