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Declining Fee Schedule Based Upon Aggregate Assets Under Management
The first $1,000,000.00 ............................1.00%
The next $1,000,000.00 ...........................0.80%
The next $1,000,000.00 ...........................0.70% Any aggregate assets above $3,000,000.00 ...0.60%
NOTE: These are annual percentage rates. Fees are billed quarterly, in arrears, based on the market value as of the last day of the calender quarter. The minimum annual fee is $3,000.00 ($750.00 per quarter). These fees are applied to a client's aggregate holdings under our management. Because this is a declining scale, we have provided the following table of effective fees to facilitate a better understanding of how the fees might be applied to your level of assets.
Effective Fees For Different Asset Levels
|
Account Size |
Annual Fees |
Effective Annual Percentage |
|
$250,000.00 |
$3,000.00 |
1.20% |
|
$500,000.00 |
$5,000.00 |
1.00% |
|
$1,000,000.00 |
$10,000.00 |
1.00% |
|
$1,500,000.00 |
$14,000.00 |
0.93% |
|
$2,000,000.00 |
$18,000.00 |
0.90% |
As a prospective client with $ 500,000 potentially under our management, this fee structure means that we need to only improve upon your current performance by 1.0% to justify our fees and you break even. Another way to look at our fees is that if you have a $500,000 account and your investments actually grow by 11.00% in a given year, then your net performance will be approximately 10.0%. As a convenience to our clients, all performance reporting is shown net of fees.
The fee-only advantage:
- Our only compensation comes directly from our clients, which minimizes conflicts of interest.
- Your best interest is in our best interest – we are both motivated to see your assets grow over time.
- Both client and advisor can be on the same side of the fence.
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