Do you know how much youâ€™re paying in investment management fees?
PORTFOLIO Professional Investment Management - One Fixed Price
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Let’s talk about investment management fees. As an investor, you are most likely paying your financial advisor a fee based on the value of your portfolio. The larger your accounts grow, the more you pay in management fees – with no end in sight.
It doesn’t have to be this way.
sa-cred cow (noun): An idea, custom, or institution held, especially unreasonably, to be above criticism or questioning.
THE SACRED COW In our opinion, the “sacred cow” of the financial industry is how financial advisors are paid. Years ago, advisors were compensated by large commissions generated from transactions – buying and selling. One unfortunate outcome of that pricing model was that churning could occur. As a client, you could never be certain if an advisor was executing a transaction that was truly in your best interests or if there were less noble motivations at play.
Under this structure, the advisor simply charges a percentage, based on the size of your portfolio, as a management fee. This did have the desired effect of aligning the investor’s and advisor’s interests – if the portfolio grew, they both profited; if it declined, they both suffered. There’s still an issue in many investors’ minds, however. The advisor’s fee never stops growing. The fee percentage might reduce as the portfolio gets larger, but the actual amount of money you pay continues to go up.
This gradually changed for the better. Commissions started to be replaced with “fee-based” pricing models. Consider an example of what a typical advisor’s fee schedule could look like:
Portfolio size x Fee rate = Advisor’s Fee $ 500,000 1.50% $ 7,500 $1,000,000 1.25% $ 12,500 $2,000,000 .90% $ 18,000 $3,000,000 .75% $ 22,500 $5,000,000+ .50% $25,000 +
Why is it this way? Because it’s just the way everyone does it.
WE’VE CHANGED THE RULES Through One Price Portfolio, we’ve given investors a new option for how to pay for professional investment management. Our services are at a fixed price for any size portfolio, and are primarily a benefit to investors who have portfolios in excess of $1 million. The One Price Portfolio may be appropriate for you if you desire: 1) 2) 3) 4)
Professional investment management. Highly customizable investment solutions. A world-class level of personalized service. An advisor who limits the size of his/her clientele so you’re not just a number. 5) A cost-conscious approach to obtaining these services.
no investment strategy can guarantee success, ours “While has a focus on helping minimize downside risk during major
OUR INVESTMENT PHILOSOPHY As an independent investment firm, we have no allegiances to specific investment companies nor do we produce our own proprietary products. This enables our clients to rest assured there are no hidden agendas when we create portfolios to meet their unique situation and goals. While no investment strategy can guarantee success, ours has a focus on helping minimize downside risk during major corrections while still looking to participate in up-markets. Also, because a portfolio’s true return is a balance between performance and fees, we use a cost-conscious approach when selecting investments.
corrections while still looking to participate in up-markets.
FEE ANALYSIS Deciphering how much you pay in investment management fees can be next to impossible â€“ let us do it for you! Once you are armed with this information, you will be able to make an informed decision about whether to leave your portfolio with your current advisor or transfer it to the experts at One Price Portfolio. See below for an example of a Fee Analysis Report.
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With One Price Portfolioâ€™s fixed $11,000 annual fee, complicated fee structures are a thing of the past. For accounts under $1 million, our standard fee of 1.25% will apply. If you would like a complimentary analysis of your portfolio, please fax or mail copies of your statements to: One Price Portfolio Attn: Fee Analysis Dept. 13710 FNB Parkway, Suite 105, Omaha, NE 68154 Or Fax to (402)753-3083
SCHEDULE OF SERVICES As a client of One Price Portfolio, you will be entitled to: 1) Dedicated wealth advisor with a limited number of clients so you (and your accounts) receive the attention you deserve. 2) Dedicated service & support team 3) Proactive investment management of all accounts 4) Scheduled phone reviews (technology is available for internet based face-to-face meetings if desired)
5) Unlimited email/phone correspondence 6) Quarterly statements 7) Use of firmâ€™s online technology center
a) Web-based and mobile account look-up & consolidated reporting center
b) Aggregation of outside accounts (i.e. bank accounts, mortgages, credit cards, etc.)
c) Budgeting and expense tracking
d) Vault for electronic safekeeping of files
8) Weekly market commentary and other informational correspondence 9) A la carte pricing for financial planning and other additional services.
GETTING STARTED We specialize in making the transition process from your current advisor to One Price Portfolio as seamless as possible.
Contact us for a confidential discussion about your current portfolio and to visit about what you want to accomplish. During this brief visit, we can both determine if we are a good fit for one another and we will be happy to answer any other questions you may have.
Fee Analysis (optional)
If you wish, we will conduct a complimentary Fee Analysis on your current portfolio to determine how much you are paying your financial advisor and how that compares to One Price Portfolio. We will need current copies of your investment statements to complete this process.
Using information you provide to us, our Service Team will prepare new account and transfer paperwork for your signature. Paperwork will be overnighted to you and back to us at our expense.
Once your accounts are in place, you will have your initial review with your new Wealth Advisor to ensure everything is to your satisfaction. This review will include a discussion about your investments, an overview of our technology for your use, and anything else that needs to be covered.
QUESTIONS AND ANSWERS Below are several common questions and answers about our program.
Q: By offering a fixed management fee, what is your incentive to grow my portfolio? A: Our business is built on relationships. If we provide a service our clients find valuable, they’ll be
happy. When our clients are happy, they refer other people to us. Our incentive, then, is to take care of each and every client to the best of our ability. If they prosper, we’ll prosper. We firmly believe our One Price Portfolio is a “win-win-win” scenario: you benefit from a flat fee while getting professional investment management; anyone you refer to us could also potentially save thousands of dollars in management fees each year; and we benefit by growing our clientele with more ideal clients.
Q: Can you manage a $5 million dollar portfolio with the same efficiency as a $500,000
account and still be profitable by charging a fixed fee?
A: Yes, we can. A decade ago it was much more labor intensive to manage portfolios as they grew
which is why advisors needed to charge higher fees. Today, with the technology we have at our disposal, we are more efficient than ever before which allows us to charge a fixed fee and still maintain enough profit to provide comprehensive services.
Q: How do you provide a high level of service for clients who live in different cities? A: People are more on the move in today’s world than ever before, and we’ve been able to stay
connected to our clients in other locations very successfully. We utilize phone, email, mail, and any other available means to stay in touch with our clients on a regular basis, according to their preferences. Our online technology center enables our clients to stay informed as often as they like . We are also available for in-person meetings.
OUR VISION Frustrated by Wall Streetâ€™s big bonuses and excessive advisor compensation models, Phil is on a personal mission to provide world-class wealth management strategies for a fraction of the price, and without compromising service or performance.
ABOUT US One Price Portfolio is an independent, national wealth management firm specializing in managing investment portfolios for a fixed fee. We serve as a Fiduciary on our managed accounts so our clients can rest assured we have their best interests in mind. Phil Wood, President and founder, has been in the financial services industry since 1988 and holds many industry registrations. In addition to overseeing the strategic direction of the company as a whole, Phil continues to be a practicing Wealth Advisor. Committed to providing the highest possible level of service, the firm matches new clients to a team of specialists. This team includes a dedicated Wealth Advisor, Relationship Manager, and Service Associate to take care of each clientâ€™s unique needs.
If you would like a complimentary fee analysis on your current portfolio or more information on our services, please contact us. It would be our pleasure to assist you.
PORTFOLIO Professional Investment Management - One Fixed Price
firstname.lastname@example.org 13710 FNB Parkway, Suite 105, Omaha, NE 68154 Toll Free (855)331-0371 Fax (402)753-3083
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Securities and advisory services offered through SII Investments, Inc. Member FINRA/SIPC and a Registered Investment Advisor. One Price Portfolio is a division of Wealth Partners, Inc. and is not affiliated with SII Investments, Inc.