Fees matter. The financial industry is quite good at hiding fees and making them appear smaller than they really are. Some get compensated from the funds in which they invest for their client. We do not. Some take commissions. We do not. Some advisors or their firms, buy bonds and mark up their price and then sell them to their clients making a profit as a dealer. We do not. We believe our fees are competitive with all fee-based advisors who have individual relationships with clients. However, they are still significant.
Our fee schedule is based on assets under management which is a common industry practice. However, we encourage buyers to think of the fee as a proportion of the profits they expect to make. If an advisor charges 1% and the client expects to make 5%, then the advisor is enjoying 20% of the profits. In today’s world of low returns on cash and bonds, advisory fees are significant. In keeping with our opinion that our clients should make informed decisions, clients should know there are lower fee options online from so called “robo-advisors” such as Betterment and Wealthfront.
|Assets Under Management||Annual Fee||Quarterly Fee|
Our fees are billed quarterly in arrears based upon the market value of the Assets on the last day of the quarter. The Annual Fee shown above is for informational purposes. The calculations apply the rates shown in the Quarterly Fee to the Assets.
We require a minimum fee of $1,000 per quarter. The minimum is waived for the first quarter. Red Tortoise will never charge a quarterly fee in excess of 0.50% (2% annually) of the assets under management.