Quote:
Originally Posted by Plinker
Fees are very high and returns mediocre. Far better off in a low cost index ETF.
Equity and Blended Accounts
Amount of Assets Annual Management Fee
First $1 million 1.25%
Next $4 million 1.125%
Additional amounts over $5 million 1.00%
Your Assets Annual Fee Amount
$1MM $12,500
$5MM $57,500
$10MM $107,500
In addition to these fees, clients may also pay brokerage commissions, other custodian fees.
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As I understand it, they don’t take a percentage of the increase in your portfolio. Rather, they base their fees on the total value of your portfolio.
So if you have $1,000,000 at the start of the year and the market goes up 1%, you would have $1,010,000 at the end of the year but they would take 1.25% of $1,010,000 or $12,625. You would have $997,375 at the end of the year. If they are that good, they should be willing to base their commission on the increase in value.