Fiduciary, Independent, Fee Only Financial Advisors
We charge fees in two different ways.
What is a "Fee Only Financial Advisor". We serve Minneapolis, Saint Paul and Rochester areas.
Many financial advisors aren't legally required to act in your best interest. Instead, they only have to do what's suitable for you.
"Big name" brokerage firms like Merrill Lynch and Wells Fargo may sell proprietary products even though they may not be the best product for you. This may create a conflict of interest and could increase your cost.
They receive hidden commissions and third-party payments for selling products in addition to the fees they may charge.
They are generalists often focusing on investing alone with little consideration for your retirement goals, taxes, and income needs.
As a registered investment advisor, our advisors are held to a fiduciary standard legally requiring us to act solely in your best interest.
We don't sell proprietary products and only select investment vehicles from the available universe of securities that are we know to be most suitable and efficient for our client’s needs.
Our financial advisor fees are simple and straightforward based on a predetermined percentage of your assets under management or a fixed financial planning fee. We never charge commissions.
We specialize in retirement income planning and investment management with special attention to taxes, income, and preserving wealth in retirement.
We are only compensated by our clients, not from insurance companies or brokers. Personal care and services are the hallmark of UAK Diversified, not some “innovative products” by an insurance company that richly compensates non-fee-only "captivated" advisors.
The fee we charge our clients is commonly called the Asset Under Management (AUM) fee. The AUM fee includes ongoing financial planning and investment portfolio management/reviews as well as reviews of other key components of your financial strategy, such as insurance, estate, education funding, tax strategy, etc. We may charge an hourly rate for special projects on business tax and financial strategy consultation when it becomes an unusually large commitment.
The percentage is set as annual, on a quarterly basis in arrears. AUM fees are based on a percentage of the assets under management and are paid in January, April, July and October, pro-rata if applicable. Fees are assessed based on the account asset value(s) on the last business day of the billing period.
Clients with $650,000 in assets under management (AUM) would be charged 0.80% annually.
Clients with $2,750,000 AUM are billed .841% annually, 0.67% annually.
Clients with $22,000,000 AUM are billed .568% annually, 0.455% annually.
Frequently use expensive products for clients but higher compensating for advisors (Mutual funds with around 0.8~1.2% fees, structured securities, various platform fees) in addition to the very high Asset Under Management fees (a.k.a. AUM fees). Source: Employee Fiduciary and kitces.com
Despite the high fee, it is very hard to beat the market with mutual funds. So typically, investors don't get what you pay for with mutual funds.
Directly invest in stocks and bonds (0% additional management fees), Frequently utilize Diversified Index Funds (As low as 0.05% fees), Diversified ETF solutions* (0.05% fee for a moderately allocated portfolio).
*A typical Investment portfolio used for illustration. Actual overall product expenses may increase if a client requests for specialized investment products, such as environmental, social and governance (ESG funds).
A small difference in fees can make a world of difference over time through the power of compounding. Below is a demonstration of how a small difference in the all-in-fee (advisor's asset under managed fee plus product fee) can result in a not-so-small difference over a long period of time.
0.79% more all-in annual fee = 31% less wealth accumulation!
We are fully transparent fee only financial advisors. Please, visit us for your financial and investment planning needs. We serve clients in Minneapolis, Saint Paul, and Rochester areas with a competitive asset under management fee.
For $100,000 starting portfolio, with competitors' higher fee...
By 10th year, investors would have saved about $15,000 on fees. That is 8% more investment balance for UAK clients!
By 20th year, investors would have saved about $62,000 on fees. That is 16% more investment balance for UAK clients!
By 30th year, investors would have saved about $191,000 on fees. That is 25% more investment balance for UAK clients!
By 37th year, investors would have saved about $389,000 on fees. That is 31% more investment balance for UAK clients!
“Know your total fees (AUM and Product Fees), because it will be a major investment return factor.”
Unlike many of our competitors which put client's money in mutual funds that charge around 1% annual expenses, in addition to AUM fees, we don't typically offer mutual funds. [Source: The Balance and Fidelity] 90% of mutual funds don't outperform respective market indexes (S&P 500 index, Aggregate Bond index, Russell 2000 small company index, etc). Investments that UAK Diversified recommends to our clients are all cost efficient exchange traded funds or index funds that tightly perform around the market indexes. And the total product expenses is only about 0.03% to 0.1%.*
We offer our clients “Institutional” or “Advisor” share class mutual funds, which typically have much lower annual expenses than A, B, and C share class mutual funds (which have large embedded fees to compensate the middleman and financial planners every year). Clients who really want to invest in actively managed mutual fund will be able to invest in “Institutional” or “Advisor” class shares to keep the lowest possible fees (without any sales load). Further, we offer complementary full financial planning with robust Monte Carlo simulation to best assess the highest probability strategies for the investors/clients’ retirement wealth building success. Legally, UAK Diversified is not allowed to predict the future about investment performances. But Ujae, as co-founder, can say this: that he can confidently tell his sons when they grow up and come to work with him, which he hopes and prays for, that he did his best to provide the best advice to clients to help them accumulate wealth and reach their goals.
*Clients' special requests for specialized investment products may increase the product expenses. Such request include but not limited to, "smart beta funds", "environmental, social and governance (ESG) funds", and "alternative" funds etc...
All written content on this site is for information purposes only. Opinions expressed herein are solely those of UAK Diversified LLC dba UAK Diversified Wealth Management and our editorial staff. The information contained in this material has been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by UAK Diversified LLC dba UAK Diversified Wealth Management a Registered Investment Advisor in the State of Minnesota. UAK Diversified Wealth Management is not affiliated with or endorsed by the Social Security Administration or any other government agency.
The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Minnesota or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.
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These materials have been independently produced by UAK Diversified LLC. UAK Diversified LLC is independent of, and has no affiliation with, Charles Schwab & Co., Inc. or any of its affiliates (“Schwab”). Schwab is a registered broker-dealer and member SIPC. Schwab has not created, supplied, licensed, endorsed, or otherwise sanctioned these materials nor has Schwab independently verified any of the information in them. UAK Diversified LLC provides you with investment advice, while Schwab maintains custody of your assets in a brokerage account and will effect transactions for your account on our instruction.
We are Fiduciary, Independent, and Fee only financial advisors. You can expect Objectivity, Open Communication, Accountability, Discipline, and Coordination. We are Registered investment advisors serving Saint Paul, Minneapolis, Rochester, and near Twin City areas. Email me for Nationwide.