The Fee-Only Difference

One of the most important questions to ask any finance professional is “how do you get paid?”.   As a fully transparent fee-only advisor, we take no commissions on any products our clients invest in.  This is very important in removing any incentive to push products.

Rather than charging any up front commission, a fee-only advisor makes money by either charging:

a.) an asset-based fee charged as a percentage of assets under management, or

b.) a performance-based fee charges as a percentage of profits on accounts manager, or

c.) an hourly fee invoiced on a per-service or per-project basis.

Our fixed management fees start at 1.5% per year of assets under our management, and can be reduced with size or loyalty discounts.  Alternately, clients may instead choose to pay a performance fee of 25% of the total return on their account above the previous high water mark (explained here) with no fixed fee.  We also manage accounts with a combination of these two fee structures.

Brokerage execution and custody fees (if any) are extra and charged separately by the broker, but we choose to work with firms like Interactive Brokers, Saxo and Vanguard to keep these fees at a minimum.