For portfolio management, we charge a flat initial amount (minimum $1,000) to review your investments, your goals, financial condition and risk limits, and then design your portfolio.
For the ongoing management process, where we work within the strategy that came out of the review and design process, we charge flat monthly fees based on the time we expect to spend on your portfolio, not the size of our account.
The minimum monthly fee is $300, for uncomplicated accounts with a limited number of positions, and without unusual design, research, monitoring, reporting or other handling requirements, and with a single account, and no requirement to coordinate strategy with other investments held in other accounts that are self-managed or managed by other advisors.
Fees generally range from $300 per month to $3,000 per month. Accounts that require prior approval of each trade, or that require extensive reporting and written reports, or that involve large amounts of telephone, email or face-to-face time cost more than those that have less of those activities. In any event, our flat fees are typically highly cost competitive with those of advisors who base their fees on a percentage of assets.
We agree on a monthly amount and work within that for a year. Annually, we make a mutual review of the fees for upward or downward adjustment.
For investment coaching, we charge by the hour, subject to a 12 hour minimum retainer at the current rate of $150 per hour ($1,800 retainer).
Alignment of Interests: We do not sell any products, and are not affiliated with any product sponsor or dealer. We do not receive any compensation of any kind from any source other than our fees as described above. Fees are paid directly by you -- we do not take fees from your account -- you send us our fee by separate check.
Advice and Consent: We do not accept fully discretionary accounts -- we require that you participate in the review and approval of a suitable approach, within which we will work; and to approve any fundamental modifications to the plan, approach to securities selection, or risk control measures.
Fee Determination: The amount of the flat monthly fee for management is dependent on the nature and scope of the work you request. We design and manage unique portfolios for each client and do not put you into generic model portfolios. We would make more money if we did that, but that would not be in your best interests.
The greater the complexity of your investments and the management of them (number of institutions holding assets, number of accounts, number of positions, frequency of reporting, scope of reporting, visitation and travel requirements, extent of market and security discussion, etc.) are factors that go into our fixed flat monthly fee determination.
Renewal Fees: Our monthly fee is re-examined each year, or upon material change in the nature or scope of work required.
Billing: Management fees are paid monthly in advance. We do not invoice. You self-administer payment of the same amount each month.
Termination: The management relationship may be terminated at any time without further obligation for additional payments, however, all amounts previously paid are earned and non-refundable as received.