Fees
We do not sell you any financial products or get paid by commissions, transaction charges, or revenue sharing. We only work for you and we are only paid by you.
As fee-only & fiduciary financial advisors, our sole compensation is the management fee you pay us. We do not sell any products or earn commissions. Unlike the majority of advisors, we have an incentive to keep your investment costs low. See “Why Fees Matter” here.
P&A Fee Schedule:
| Annual Fee | Asset Min | Asset Max |
| 1.000% | $0 | $500,000 |
| 0.875% | $500,001 | $2,000,000 |
| 0.750% | $2,000,001 | $5,000,000 |
| 0.625% | $5,000,001 | $10,000,000 |
| 0.500% | $10,000,001 | $25,000,000 |
| 0.375% | $25,000,001 | and up |
We will typically combine assets we manage by “household” so that all accounts held by a client, spouse/ significant other and any minor children or dependents will be aggregated together for fee billing purposes. The advisory fee will be a blended percentage rate based on the total household assets under management at the end of each quarter using the tiers shown in the table above. For example, if a household’s total balance is $1,500,000 at the end of the quarter, the annualized blended fee rate will be 0.917% ($500,000 is billed at 1.00% and the amount above that is billed at 0.875%, and so on.) Under household tiered billing the percentage fee charged on each account will automatically adjust each quarter as the assets managed by P&A increase/decrease based on changes in market value, deposits, or withdrawals.
+ Additional Investment Expenses
Mutual funds and exchange-traded funds (ETFs) have their own internal expenses. This is known as the expense ratio and it covers the management of the fund. Our clients also pay their own trading commissions, however, our preferred custodian, Charles Schwab, has eliminated trading commissions on U.S. stocks and ETFs, effective October 7, 2019. Other non-U.S. stocks and ETFs may still incur a trading commission ($4.95 to $12.95 per trade). A handful of mutual funds we use charge a transaction fee of up to $49.95 to buy or sell. We do not participate in any transaction charges or commissions charged to our clients. It’s in our interests and yours to minimize these expenses, while still addressing opportunities for diversification in your portfolio.
The investing strategy used for your account(s) will determine these additional internal expenses. For example, an ETF portfolio with a 75% stock and 25% bond allocation will have an all-in cost (our fee + fund expenses + trading commissions) of around 0.93% per year. An individual stock and bond account will have an all-in cost of roughly 1.05% per year. We are happy to show you an estimate of your all-in costs for each account prior to you becoming our client, as each portfolio is unique.
- Additional Investment Expenses
Our financial planning services are available to current investment management clients on a complimentary basis.
