Our Cost
All our services, including both wealth management and comprehensive planning, are included in one fixed fee. Our fee is a sliding scale based on the amount of managed assets, generally about 1% per year for a $1.5M portfolio, with the percentage becoming significantly smaller for larger portfolios. There is no cost or obligation for initial conversations.
We are fee-only: Bob Veres, a well-respected financial planning editor, author and speaker, recently wrote: “a client with a $1 million portfolio will pay at least $20,000 more in various hidden costs to a broker than to a “fee-only” financial adviser, even if both the broker and adviser are charging the same fee amount for planning and investment work.”
[Inside Information, http://www.bobveres.com/. Ken Smetters, Economist at the Warton School, specializing in studies of financial advisors]
Four ways in which the value we provide is worth multiples of our cost
1. Access to better investment choices, including low cost, tax-advantaged Dimensional Funds, available only through an approved advisor.
For example, in almost every asset class, annualized returns of DFA funds have outperformed comparable Vanguard funds over the past 20 years by about 1%.
[https://www.ifa.com/articles/dimensional_fund_advisors_deeper_look_performance]
2. Greater long-term returns and tax savings, through regular rebalancing, tax-bracket optimization, strategic Roth conversions, and tax-loss harvesting.
For example, rebalancing contributes additional long-term annualized returns of about 0.35%. [https://www.vanguard.com/pdf/ISGQVAA.pdf].
3. Savings in stress, worry, and time, so you can simplify your life and focus on what’s important to you.
For many, the peace of mind of knowing you are on track to attain your goals through all the market cycles is invaluable.
4. Savings in costly financial mis-steps we may help you avoid, especially the Big Mistake
Reacting to market swings costs the average investor 2%-4% in annualized returns. [Dalbar research firm, “Quantitative Analysis of Investor Behavior,” https://www.dalbar.com; https://www.vanguard.com/pdf/ISGQVAA.pdf].