It looks like there are several people in this tread that are happy with Fross and Fross. They seem to have several hundred clients in TV and spend significant time marketing their services.
Can someone enlighten us on the following:
- Are they a fee-only advisor or fee plus commission? (
FEE ONLY)
- Are they a fiduciary for you the investor? This is huge and I highly recommend that you only work with a fee-only fiduciary advisor. Here is a good article that highlights the differences.
Does Your Broker Make You Broker? | Terry Savage
- What types of investments are in your portfolio? Mutual funds like American Funds, ETF's or other investments? (
MF, ETFs, Bonds, REITs ...would vary depending upon a clients need) Do you have A shares, B shares, C shares or no load funds? (
Typically "I" or "Advisor" class funds - no commission or back charges) Do you pay 12b-1 fees back to Fross and Fross?(
All 12b-1 fees are rebated back to your cash balance)
- Do they compare your portfolio to a custom benchmark/ index every quarter so you can track performance? (
YES....You can work with them to determine the best benchmark to use...not everyone is for full charge growth ) This will help you determine if they add value over time.
- It looks like they also sell insurance? Do they try to sell you equity indexed annuities or other high commission insurance products?(
They are licensed to sell insurance or annunity products. Each clients situation is much different than the next so its hard to generalize. If a client needs some guaranteed income (or downside safety)an annunity may fit their need, this however, is not their primary sell.
- Who do they custody your money with? Where is your money held? Is it at Schwab, Fidelity, TD Ameritrade or someplace else? (
SII Investments)
- Here is their firm brochure. It looks like they are part of SII Investments, Inc. They are required to give the firm brochure to every client and prospect once per year. Are people really paying this high fee schedule or are you getting some sort of TV discount for "private wealth management for select individuals"? At this tiered schedule you would pay $21,249 per year for $1 Million (this is very expensive)!!!! What are people actually paying? (
The fee schedule(s) you included are part of SIIs package, however in addition to these schedules there is an option for a FLAT fee. Fross and Fross uses a 1% annual flat fee...which is very reasonable for a managed account.)
Fross and Foss firm brochure from SEC
IAPD - Part 2
Standard Linear Fee Schedule - from SII Investments, Inc ADV2 brochure 2013
Portfolio Value Maximum Annual Fee
$0 - $49,999.99 2.75%
$50,000 - $99,999.99 2.75%
$100,000 - $249,999.99 2.50%
$250,000 - $499,999.99 2.25%
$500,000 - $749,999.99 1.90%
$750,000 - $999,999.99 1.75%
$1,000,000 - $1,249,999.99 1.75%
$1,250,000 - $1,749,999.99 1.50%
$1,750,000 - $1,999,999.99 1.40%
When it comes to investing, details matter. We hope to learn more about their approach. Thanks