An uncomplicated FLAT fee structure...
0.75% (.0075) Annually for account balances totaling less than $1,000,000
0.5% (.005) Annually for account balances totaling $1,000,000 Plus
*** Fee Negotiated for account balances totaling over $5,000,000
This fee structure is designed to be half of the industry standard of 1.5%
When the client accounts make more money, we make more money.
Department of Labor Example:
If you have $25,000 in your retirement account, and make no further contributions, this account returning an average of 7% over the next 35 years with 0.5% annual fees, your account will total $227,000! But if the annual fees are the standard 1.5% annually, the account balance after the 35 years is only $163,000.
That 1% difference in fees leaves you with 28% LESS money!
You sacrifice NOTHING for the lower fees we charge.
Our low overhead and debt free operation allow for this low fee posture. This is pure strategy. The large firms with their large over head mandating their high commissions and fees can't touch our pricing, or beat our experience, we should know, because we were employed by those firms. We hope our prospective clients see the merit of our wisdom, and realize it is an example of our capabilities, and not feel they would receive sub par services.
Let's say you go to an Advisor that wants to allocate your money in various mutual funds & fund families in an asset allocation model. If there is an 'up-front' 5.5% commission, you will have 5.5% LESS money working for you out of the starting gate! Changing those allocations occasionally (rebalancing) is part of TRUE investment management. When the Advisor of these firms sells part of one allocation fund and buys more of another fund, that aforementioned 5.5% fee is assesed on the new amount being bought. Also, when you are paying those huge fees upfront, and a massive tragedy should strike, that advisor is actually bound by ethics, because your fees can't be refunded, to keep you in and ride out the probable market fall, rather than take your accounts to cash or modify the model. Lastly, what if after paying that fee upfront, that advisor starts charging the typical management fee of 1.5 % per year, a year later? There's another very important element you need to be aware of regarding fees. The specifics depend on your individual situation. Most Financial Advisors make this mistake unknowingly, or overtly! We can discuss this in detail when we meet.
Our fees are assessed over the whole year, NOT UPFRONT, and ONLY on the money/balances held in the client's investment accounts at our firm. There are no retainers. We do not charge a fee for guidance on client's money held in their employer's 401K, 403B, 457, pension, etc. plans.
"I had a client tell me in our first meeting that they wouldn't mind paying TOP DOLLAR for expert advice. My reply was, why not pay half that fee for expert advice?" I got the impression he wanted to pay a higher fee just to 'feel' better.
Steve Casull, CEO Casull Financial Advisory