We Like to Keep Things Simple
Which is why the price for our services is one, easy-to-understand, flat, annual retainer fee.
$5,000 per year ($1,250 per quarter), per client relationship.
The fee includes our holistic financial planning and investment management services.
Why do we provide these incredible services at such a great cost?
We are in this business to be a financial force of good for our clients. We live simple lives and know that we work with a finite number of clients in order to deliver our high-service model. Our clients tend to have $500,000 to $5,000,000 of investable assets. We have designed our firm to cater to this niche, our services do not vary appreciably between clients, so our fee structure reflects our value.
Why do you charge a flat, retainer fee instead of the traditional % of assets under management?
We are fiduciaries, we are constantly seeking ways to provide valuable services to our clients at a reasonable cost and eliminate potential conflicts of interest. There has been a huge shift over the past decade to move away from commission-based advice to paying a % of assets under management. Removing the financial incentive from advisors to churn accounts in order to make more commissions has been a step in the right direction. However, we do not believe the value a financial planner and investment advisor provides should be based on the arbitrary value of a client’s investment portfolio. We know from experience that there is not a significant difference in the work required to serve a client with 1 million in assets vs 5 million in assets. Why should one client pay tens of thousands of dollars more each year in fees?
The difference in costs and lost portfolio growth over time is shocking when you compare our fee structure with the traditional % of assets under management.
•Loss in portfolio value, $460,000
•Additional fees paid, $290,000
The amounts assume a typical 1% fee for a $1,000,000 portfolio compared to our flat, annual retainer fee of $5,000. We are assuming a 7% annual growth rate before fees each year and use a 20-year time frame for this example.