Our Flat-Fee Approach

The individuals and families we serve pay a flat annual fee. This fee is typically between $4,800 and $8,000 per year and is based on the complexity of your unique financial situation. Our flat-fee approach is designed to minimize conflicts of interest, treat clients fairly, and ensure that you receive objective financial advice.

Why flat fees?
Over the past several decades the investment advisory business has slowly shifted away from transactional, commission-based compensation and moved towards asset-based advisory fees. This move has generally benefited investors because it removes the incentive for a broker or advisor to churn client portfolios, or to favor products that pay higher commissions. However, asset-based fees create new conflicts of interest and charge investors based on the value of their portfolio rather than the value of the actual services they receive.

  • Reasonable compensation
    We believe that the fee you pay a financial advisor should be based on the services you receive, not the size of your portfolio. When an advisor charges based on your account balance (typically 1% per year), someone with a $2 million portfolio will pay 4 times as much as someone with a $500,000 portfolio, even if the services provided are essentially the same. Our intent is to change this, at least for our own clients, which is why we have adopted a flat fee structure where we are compensated based on our expertise and the services we provide, rather than on the value of our clients’ portfolios.

  • Conflicts of interest
    Another significant benefit of flat advisory fees is the removal of certain conflicts of interest. The following scenarios demonstrate some of the conflicts that can arise when an advisor is compensated based on the value of your portfolio:

  • Paying off debt- Paying off loans and becoming debt free is a goal most people share. There are various factors to consider when choosing between paying off debt and saving/investing for other financial goals. An advisor who charges based on your account value has a conflict of interest when helping to prioritize these competing goals because paying off debt may reduce the amount of invested assets on which the advisor is paid.

  • Real estate & other investments- Real estate and other alternative assets can be great investments, but an advisor who is paid based on the value of your portfolio is less likely to recommend an investment on which they can’t collect a management fee.