In the Flat Fee Portfolios program, the management fee per account is a fixed monthly fee otherwise known as a flat fee. It does not fluctuate like a fee based on assets under management and is designed to be transparent, simple, and fair. Find out which offering fits your individual situation >>
Since the cost to the end client is fixed, the benefits of compounding accrue to the investor over time. Over a long time period, this can amount to tens or even hundreds of thousands of dollars. See our sample Fee Audit for an example.
At Flat Fee Portfolios we believe very strongly that investors should know exactly what they are paying in real dollars. Learn more about why fees matter >>
How is this approach different from others?
In the investment management industry, professionals are generally compensated in one of two ways. On one hand, a stockbroker might charge a commission to execute a transaction on behalf of a client (for example, the purchase of a mutual fund or shares of stock). The stockbroker is compensated based on the number of buys and sells in accounts, and not for any advice provided to clients. Alternatively, a financial advisor typically charges a fee for advice based on a percentage of the assets managed for a client. In these situations, the fee increases as the size of the account grows and the fee decreases when the size of the account falls. A conflict of interest could occur if a client is seeking advice from an advisor about whether or not to take a withdrawal thereby decreasing the assets in the account. Our approach helps to remove potential conflicts of interest.
Are these the only fees?
Outside of our monthly management fee, mutual funds and exchange trade funds also have their own internal expenses. Additionally, separate transaction costs may be charged by the custodian to place trades in the accounts. Many of the mutual funds and ETFs in our models do not have transaction costs; however some do. Where possible these trades will be executed at a discounted rate with the custodian. Please note that our advisors do not receive any portion of these additional fees.