We charge fees in three different ways.
We don't receive any compensation from sale of insurance or investment products.
We are only compensated by our clients, not from insurance companies or brokers. Our recommendations are objective and in the best interest of our clients. Our expertise and services are the hallmark of UAK Diversified, not some “innovative products” by an insurance company that richly compensates non-fee-only 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.
We look forward to joining National Association of Personal Financial Advisors (NAPFA) and XY Planning Network (XYPN), which exclusively accept fee only financial advisors, as a member in the very near future.
Clients with $650,000 in assets under management (AUM) would be charged 1.00% annually initially, 0.80% annually after 20% discount.
Clients with $2,750,000 AUM are billed .841% annually, 0.67% annually after 20% discount.
Clients with $22,000,000 AUM are billed .568% annually, 0.455% annually after 20% discount.
We are fee only financial planners in Minneapolis. We also serve the Saint Paul and Rochester areas.
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.
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 the full full 20% fee discount applied. We know how to invest your money more like large insurance companies or banks would with their money.
Unlike many of our competitors which put client's money in mutual funds that charge around 1%~2% annual fees, we don't offer mutual funds. 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 fee is only about 0.1% to 0.3%.
We can offer our clients “Institutional” or “Advisor” share class mutual funds instead of 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 products to his clients and that he did it in such a way that more wealth could belong to the clients' portfolio.
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.”