WHAT IS FEE-ONLY?

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
COMPENSATION METHODS USED BY OTHER ADVISORS

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

FLAT FEES

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

WHY FLAT FEES MATTER

For example, with a $500,000 investment, the low cost of our advice is only $1,000 annually vs. the industry average of $5,100 (1.02%).

Over a 10-year period, with compounding, that means $83,956 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 $500,000 in an equity index fund (VTI) over a 10 year period. Portfolio rebalanced annually and fees were reduced quarterly.