How We Are Compensated For Our Services
We are offering three portfolio options to our clients. The portfolio options include 1.) An Individual Stock Portfolio, 2.) An Exchange Traded Funds (“ETF”) Portfolio, or 3.) A combination of the two. The three portfolios each come with different pricing structures. For an Individual Stock Portfolio, we will charge you an annual management fee of One percent (1%) of your assets under management, payable quarterly. For an ETF Portfolio, we will charge you an annual management fee of Zero point Six percent (0.60%) of your assets under management, payable quarterly. For a combined ETFs and Individual Stocks Portfolio, we will charge you an annual management fee of Zero point Eight percent (0.80%) of your assets under management, payable quarterly. We also offer financial planning consultation for $150 per hour. Our fee is generally not negotiable, but may be in special cases.
How We Bill For Our Fees
Our clients pay us a quarterly management fee. You may choose to pay by check, or have us deduct it from your account. We calculate quarterly fees on the ending value of your account as of the quarter’s end. For example, fees for the third quarter (July 1 to September 30), are calculated based on the value of your portfolio as of September 30, generally excluding the value of any special assets. We send you an invoice each quarter that shows how we calculate your fee. Our invoices include a portfolio appraisal that shows the value of your account. When you pay our management fee directly, payment is due by the 15th of the first month of the next quarter. When you allow us to deduct fees directly from your account, we typically will do so during the beginning of the first month during the first quarter (for example, for the 3rd quarter, we deduct fees around October 15th). Financial planning consultations fees will be due when services are rendered.
Termination Of Investment Advisory Contract
You may terminate our investment advisory contract at any time, without previous notice. We have the right to do the same. We do not charge a fee to leave our platform, however, Scottrade may charge a small transfer fee if you transfer your assets outside of Scottrade.