We understand that creating and maintaining wealth has always involved managing costs effectively. Common stocks & bonds eliminate additional layers of hidden fees and expenses found in alternative investments. We believe the vast majority of financial advisers create an illusion of providing investment expertise. Most delegate to outside money managers, thus, creating layers of additional expenses and costs for you. We're different.
How We Charge
We are a fee-based practice. Clients choosing the TD Ameritrade platform are charged investment management fees based solely on the amount of assets under management. At the end of the last day of every quarter, we measure the balances of all accounts in your portfolio. During the first week of the new quarter, we charge your portfolio one quarter of your annual fee for our investment advisory services provided in the coming quarter. Transparent.
Our reporting service, Morningstar Office, calculates your historical rates of return, net of the fees we charge, and we report that to you. We compare your results to three alternative benchmarks: (1) An ALLCAP 80(20) / 20 Portfolio (2) The S&P 500 Stock Index, and (3) An ALLCAP 40(10) / 60 Portfolio. Our portfolio management systems provide tax reporting, and complete tax analysis of your accounts. Straightforward.
Your investment costs are watched closely with an eye towards lower expense ratios, lower portfolio turnover in hope to lower transaction costs and an increase in your overall tax efficiency. We differ from many other advisers in that we design our client portfolios to include individual stocks and bonds to accompany an eclectic portfolio of low-cost ETF's and low-cost no-load mutual funds. That's why we believe that our .75% fee is likely less than their .75% fee due to lower potential internal expenses today, and lower potential tax obligations tomorrow.
|Annual Fee Schedule Dated September 25, 2013|
|Assets Under Management||Annual Fee|
|Up to $1,000,000||1.00%|
|Next $2 million||.75%|
|Next $2 million||.50%|
Our minimum relational fee is $1,500.00
“A 2012 study by Cerulli Associates and Phoenix Marketing International found more than 60 percent of investors either did not know how their advisors got paid or thought that the service they offered were free.” A little tip? It never comes free.
"Investors are very sensitive to the fees they pay directly to their advisors, and all but oblivious to the fees they pay indirectly," says Barbara Roper, director of investor protection for the Consumer Federation of America.
We strongly suggest that you learn exactly what you are paying. We can help! Just contact us to REQUEST A FEE AUDIT . Email us your contact information, and we will work with you to ascertain what you are paying – in TOTAL – to have your money managed.
Wealth Management / Financial Planning Services
Clients wishing to engage us in Comprehensive Financial Planning are charged based on the complexity of their planning needs. Our Comprehensive Financial Planning service minimum price featuring Money Guide Pro is as follows: $375 one time charge, and $175 to review your financial plan annually. Comprehensive Financial Planning is available only to Investment Management Clients.
A Hybrid Registered Investment Advisor (RIA) is a financial professional who is registered as both an RIA and a Registered Representative (through their broker/ dealer). This dual registration allows the advisor to function in both a fee and commission based environment.
An Investment Advisor Representative (IAR) is similar in many respects to a RIA. The differentiating factor is an IAR uses a corporate RIA to conduct business through vs their using their own RIA. Walter Pachniuk was a Hybrid Advisor from 1990 through 2004. Today, he acts in a very similar to a Hybrid Advisor with one exception - he uses a corporate RIA.
CERULLI ASSOCIATES, an industry leading market research firm, believes that “Hybrid firms tend to attract more affluent clients, possess higher client retention rates…. clients are increasingly sophisticated and their needs more complex … acting in a hybrid role allows an advisor a broader approach in the services they can provide to their clients” contends CERULLI ASSOCIATES.
(1)Fee or (2)Commission or (3) ½ & ½ - Case by Case by …
We’ll show you the costs for each – and you’ll likely be shocked at seeing the real numbers behind each. The numbers speak for themselves.
Truly ahead of the curve, Walter Pachniuk has acted in the capacity as an IAR / RIA for nearly 25 years. His ability to operate in both investment arenas has provided him the ability to provide his clientele the full spectrum of investment choices.