Many investors don't fully appreciate the impact fees play on the their portfolio. Typically the most prevalent concern is the friction of fees on return, but we believe a bigger and more costly issue is the additional risk.
Because mass advisors, banks, and brokerage companies need to justify their high fees, they are more likely to add risk with the hope of higher returns. This extra risk is easy to hide in bull markets, but when things change, as we've seen over the last few weeks, that extra risk becomes very costly.
Because of our highly efficient, process driven operations model, we don't need to charge clients to support a massive infrastructure. This means we can offer an industry leading, ultra low .35% on the first $10 million in assets an and a mere .10% on assets above that.
Our fees are lower than what many mutual funds charge and significantly less than the 1.1% average most advisors charge.
Did you catch our last piece also on the impacts of high fees? Click here
Transcript:
0:05 Hi, Bill Woodruff, Founder and Chief Investment officer at WealthFactor. 0:09 Today I wanted to spend a little bit of time on why we have the fee structure we do, which is is is very unique relative to the industry and what I call the mass advisor. 0:23 High fees force more risk and risk taking in investment portfolios. So we charge .35% on the first $10 million of assets, and then .10% thereafter. The idea from a fee perspective isn't to try to undercut the mass advisory universe, it's more of a reflection of by charging lower fees, the investment advice that can be provided, isn't forced to take risk. 0:55 This concept of attempting to avoid unnecessary risk taking is one that's not easy to identify during periods where markets are doing well. As we looked at how we might build portfolios, the higher the fees went, the greater our need to take risk for our clients was. 1:17 A simple and low fee investment advice service solves many of those problems. Across the industry, those with highfee business models are forced to invest in areas where there's more potential for return, and when there's more potential for return, there's more risk.
About WealthFactor: A Lake Oswego based investment adviser and wealth manager serving local high net worth and ultra-high net worth investors. Founded on the idea that high fees force unnecessary risks when providing investment advice. By leveraging the investment methodologies of the largest passive and rules-based asset managers, WealthFactor seeks to pass on the benefits that efficiency provides through financial technology on to its clients. WealthFactor offers custom investment advice services conveniently through separately managed accounts in each investor’s name. For more information visit www.wealth-factor.com.
About Bill Woodruff: WealthFactor’s founder has been investing in publicly traded financial markets for over 20 years. His career includes founding an alternative investment manager, launching and managing a mutual fund and serving as a managing director of a publicly traded investment manager. With over a decade of experience serving high net worth investors Bill's skillsets uniquely blend an understanding of investor needs with an extensive background in financial markets and investing.
Disclosures
