Are you ready to say goodbye to AUM fees? We thought so.
Advisors charging based on Assets Under Management (AUM) like to say that they do better when you do better. While this is certainly true, their fees will grow simply because your portfolio grows over time, regardless of their efforts. In fact, every time you make a deposit you increase the fee you are paying. Are they doing more work for you to earn these fees?
We have a better way.
As part of our financial planning process, we will utilize Modern Portfolio Theory to create a diversified portfolio for you using low-cost ETFs. The tax-efficient portfolio will be designed to be held for the long term with minimal trading required. You place the trades in your brokerage account, but we can assist if needed. You decide how often you would like us to review your holdings or create rebalancing trades. We recommend quarterly or semi-annual reviews, but it’s up to you. An investor with a $1 million portfolio could save thousands of dollars in annual fees versus a 1% AUM model.
We also feel it’s important to consider all your investments as part of the financial planning process. This includes your employer sponsored retirement funds, your home or other real estate, or your business. We will make recommendations around these assets and model their future value to help you understand their place in helping you reach your goals.
Lastly, when appropriate, we can assist clients in selecting non-public investments like private equity, private credit or hedge funds.
We offer a free, no obligation assessment of the fees you are currently paying for your portfolio management. Schedule a time to discuss this.
Chris holds the Accredited Portfolio Management Advisor (APMA) designation, signifying completion of graduate level course work focused on the finer points of portfolio creation, augmentation, and maintenance. He reviewed closely held businesses and private placements held in trusts at one of the country’s largest banks. He also has experience in derivatives trading.