Translate:
Fiduciary Wealth Manager & Fee Only Financial Planning Advisor
ONGOING ENGAGEMENT - FEE SCHEDULE TABLE
FOR EXAMPLE:
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.
- $1,000,000 x 0.80% + $1,750,000 x 0.60% = $2,750,000 * 0.673%.
Clients with $22,000,000 AUM are billed .568% annually, 0.455% annually.
- $1,000,000 x 0.80% + $4,000,000 x 0.60% + $17,000,000 x 0.40% = $22,000,000 * 0.455%.
Competitive Fee Analysis - fee ONLY financial advisor
Financial Advisor Cost: Our clients are likely to pay a much lower fee!
- Some financial advisors arrange clients’ investment accounts such that the overall annual fee could reach around 2% for an account size less than $1M. UAK Diversified thinks it shouldn’t be that way and will strive to keep the client’s total annual fee as low as possible at around or well below 1%..
- The only source of revenue for UAK Diversified's investment management service is the asset-based fee at a predetermined fee rate schedule.
- The client is responsible for the other expenses associated with holding exchange traded funds or index funds, which is significantly lower than typical financial advisors' recommended mutual fund products.
- We are fee only certified financial planner (TM).
Most of Other Financial Advisors...
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).
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.
UAK Diversified's Advisors...
Directly invest in stocks and bonds (0% additional management fees), Frequently utilize Diversified Index Funds (As low as 0.05% fees), Diversified ETF solutions* (0.16% fee for a moderately allocated portfolio).
Moderate portfolio used for above illustration with all fees considered. We know how to invest your money more like large insurance companies or banks would with their money.
product, Asset under management fee affects your retirement
0.79% more all-in annual fee = 31% less wealth accumulation!
Conclusion:
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.”
Assumptions:
- Vangard's expected return on 60% stocks and 40% bonds portfolio.
- Starting balance of the portfolio is $100,000.
- Competitors' fee is a median fee based on recent Certified Financial Planner's survey.
- Using the Actuarial Mortality Table, a client invested with UAK around age 45 and invested for 37 years.
- Investment account within a qualified account (various IRAs) for tax assumption. RMD (Required Minimum Distribution) ignored.