How
are you compensated?
We are solely compensated by advisory fees paid by our clients
directly to our firm based on the value of assets we are managing.
By charging a percentage of assets under management, our incentive
to perform well is directly aligned with your investment objectives.
How
much are your management fees?
Our fees are based on a percentage of your account balance, and
they are graduated depending on the size of your account. The
following rates are quoted as annual percentages, although we
bill them quarterly.
|
Account
balances:
|
Fee
Schedule:
|
| From $50,001 to $100,000 |
1.25% per year |
| From $100,001 to $500,000 |
.90% per year |
| From $500,001 to $1,000,000 |
.75% per year |
| Above $1,000,001 |
.50% per year |
How
do I pay you for your services?
At the end of every calendar quarter, after the work is done,
we bill clients for our services. The majority of our clients
choose to have our management fee taken directly from their accounts.
But if you prefer, we will send you a quarterly invoice so you
may pay by check.
Are
the fees I pay deductible on my tax return?
Yes. Section 212 of the Internal Revenue Code permits an itemized
deduction for tax and/or investment advice in the miscellaneous
section of Schedule A. However, we don't give tax advice, and
you should see your tax advisor for the details.
Can
I pay for your advice on an hourly basis instead?
Yes. We will be happy to consult with you about your current retirement
or college savings investments. The charge for this service is
$125 per hour. The consultation is offered on a one time basis
for the purpose of building a model portfolio which would be self
managed.
Do
you invest my money in load funds?
No. Unlike investments that charge sales loads and upfront charges,
we invest our client's assets in no-load and index mutual funds.
We never purchase funds that are sold with a sales charge or commission.
Are
my investments held with you?
No. We are registered investment advisors, not brokers. We do
not hold your assets. Your assets can be held within your own
brokerage account, or directly with a mutual funds custodial agent.
Either way they are held in your name. As a result, any withdrawal
or distribution of assets can only be sent to you.
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