Example:
You invest $500K for 20 years and earn an annualized 8% gross (before fees) return. If your annual fees and costs are 3% (5% net), you would accumulate approximately $1.326 million at the end of 20 years. If your fees and costs are only 1%, you would accumulate roughly $3.81 million over the same period. - a 46% increase.

Fees Matter

Please look at the chart to the right, which illustrates the impact of annual fees on investment growth. The difference in costs may be minor year-to-year, but the long-term effect can be substantial. One problem is that many investors do not know the total fees for managing their investments, with or without an advisor. In addition, different types of investments have unique costs (e.g., mutual funds, annuities).

Higher fees applied to your investment strategy usually result in lower returns unless your investments produce above-average returns to compensate for the additional costs. An overwhelming body of academic evidence supports that earning above-average returns is difficult enough, let alone earning an excess amount to cover the extra costs.

My philosophy has always centered around straightforward, common-sense principles that ensure my clients have efficient access to the public capital markets. I use institutional, low-cost investments, the same type that large pension plans and endowment funds use.

We are a fee-only registered investment advisor firm. Our annual fees are, on average, 1.0%, with lower rates available on larger balances. Please see our website for more information.