Fees and Costs

We are a fee-only advisor. We do not charge commissions like your average broker. Fee-only allows us and the investor to have a clear understanding of what they are getting charged for. We do not charge any commissions on any service we provide for our clients. We have listed below different service packages and what the fees are for each accordingly:

Asset Management

Transaction costs

On top of the management fees, a client’s portfolio will also incur transaction costs.  Normally, transaction costs are much higher in the first year than the subsequent years for a client’s portfolio. 

With FPL Capital’s Folio concept, transaction costs depend on how many Folios or which type of Folio a client chooses.  For example, Folio 20 is composed of 15 different Equity and Fixed Income funds, and there will be 15 separate trades.  On the other hand, Folio 100 only has 11 different Equity funds.  Because of the aggressive nature of Folio 100, it has no Fixed Income funds.  We will end up placing fewer trades.

Since we apply a Buy and Hold strategy, a client’s transaction costs will only occur once a year except for the first year.  In a client’s first year, at the beginning of the calendar year, we will place the buy trades, and at the end of the year, we will rebalance accordingly.  Each Folio has a different allocation towards each fund.  To keep the investment objective of the Folio consistent, we place buy or sell trades depending on each fund’s performance.  Some fund allocations might not need any adjustments.  For the following years, client’s Folio will only have adjustments made to it.  The client will not have the cost of initial purchase of funds.

Most of our client assets are held at Charles Schwab.  Under their mutual fund fee schedule for advisors, our clients will pay anything in the range of $29.00 to $49.99 per trade.  The amount charged for the trade depends solely on the size of the transaction.  They charge our clients .48% of the principal amount of the transaction.  However, a client will not be charged anything less than $29.00 or anything above $49.99.

We also use TD Ameritrade.  They charge a flat fee of $24 per mutual fund trade for household accounts over $500,000 and $31 per trade for household accounts under $500,000.

We do not receive any kick-backs for the fees charged by the custodians.

DFA Fund Fees