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Advisory Fees are based on your investment assets. The total amount for the fee calculation does NOT include: assets considered for your cash reserve (checking accounts, savings accounts, etc.), individual stock already owned owned prior to establishment of advisory relationship, fixed account pensions (STRS, PERS, CSRS, SERS, company pensions). The monthly fee associated with your investment assets will then continue until your next annual review for which a new calclulation of your total investment assets will be made. If for some reason your investments go up (inheritance) or down (withdrawals) by more than one level between reviews, the monthly advisory fee will be adjusted accordingly and a new service agreement will need to be signed. Under $50,000 ($250 one time fee until more investment assets are accumulated - would still go through the same process but quarterly monitoring and ongoing adjustments would not be necessary) $50,000 to $100,000 ($50/month) $100,000 to$150,000 ($75/month) $150,000 to $250,000 ($100/month) $250,000 to $350,000 ($125/month) $350,000 to $500,000 ($150/month) $500,000 to $750,000 ($175/month) $750,000 to $1 million ($200/month) over $1 million (0.25%/year)
Payment options for advisory fees include one or a combination of the following: Credit Card (withdrawn automatically each month)
Checking Account (withdrawn automaticallly each month) Invoice (sent each quarter) Investment Account (withdrawn each quarter) |
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'Personalized' Mutual Fund |
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Another component of which fees are paid to Objective Financial Planning is the PERSONALIZED mutual fund we will be building. Although additional fees are paid, the overall expenses compared to using typical mutual funds will be less in most all cases. The reason is that the average mutual fund charges more than 1% whereas a group of individual stocks carries only the transaction costs ($7 to buy or sell your position at Scottrade, Inc.). Therefore, on a $50,000 investment that includes 10 individual stocks, the cost is $70 to establish your positions ($7 per buy times 10) or about 0.14%. Objective Financial Planning charges 0.50% to manage your 'mutual fund' for a total of 0.64%. Even if each stock was replaced one time throughout the year, total expense only goes up to 0.92% which is still less than your average mutual fund. - Average Stock Mutual Fund Expense Ratio 1.24%
- YOUR 'Mutual Fund' estimated Expense range 0.55% to 1.00%*
*depends on invested amount and transactions over the course of the year |
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