Fees
We charge an annual advisory fee. It’s a flat percentage of the assets we are managing for you.
We can charge a separate fee for financial planning in your first year. But this may be waived at our
discretion.
Other costs may also apply, like fund expenses.
Other Fee Structures
In contrast to our annual advisory fee, other advisors often have a pricing structure that combines two
different types of charges:
1. TRADING FEES
Clients in our advisory accounts do not pay separate transaction charges when we buy or sell an investment for you.
In other models you are charged a commission each time your advisor trades for you. These commissions would be in addition to the the underlying costs of executing the trade.
2. SALES CHARGE
Other advisors may purchase a particular version of a mutual fund known as A-Class Shares. These pay the advisor an up-front commission. This reduces the initial amount invested.
Again, these figures are averages, not specific to every investment or advisor. Your actual costs may be higher or lower.
Typical A-Class ‘front load’ fees range from 3.75% to 5.75% of the value of investment, according to Investopedia.
Actual fees will vary depending on the funds selected and any breakpoint discounts that may apply.
In addition to the upfront commission, A-Class mutual funds also typically charge what’s known as a 12b-1 fee each year, which is paid to the broker who originally sold it to you, for as long as you own it.
12b-1 fees are typically 0.25% a year, according to industry columnist Michael Kitces.