At ValueAligned we offer a simple and competitive advisory fee based on your portfolio’s size. It is designed to be easy to understand and we believe it puts your interests first.
We are only compensated by the fees our clients pay us. We receive no hidden fees, kickbacks, or commissions. We don’t sell products. Your fee is based on the assets we have under our management. We have a fiduciary obligation which includes trying to keep your fees as low as possible.
Our fees are billed monthly, in arrears. Fees are based on the total value of your assets under management on the final day of the prior month.
You will incur trading fees directly billed by the third-party custodian housing your portfolio. But our goal is to work to keep these brokerage charges as low as possible since our revenue is based on your portfolio’s size.
Many advisors and brokers can charge commissions on products they sell in addition to management fees. We don’t buy products for you. We buy shares of great companies directly making up a portfolio of your stocks. We don’t buy mutual funds, Exchange Traded Funds (ETF), annuities, or any other product.
When comparing investment and advisory services, misaligned fee structures can jeopardize your retirement income.
Suppose you have exactly $500,000 in your IRA under management today. We take the value of your assets ($500,000) and apply it to the fee schedule to get an annual fee of 1.0%.
When we multiply $500,000 by 1.0%, your annual rate is $5,000.
To calculate your bill for this month, we divide $5,000 by twelve (12), which is $417. The monthly fee is billed directly through the accounts at Folio Institutional, or another brokerage firm or custodian. Since asset values change, we perform this same calculation each month.
What do we mean when we refer to “assets under management?”
These are accounts with a bank or broker which can be moved (transferred) to our custodian (Folio Institutional, a Goldman Sachs Company). This would include personal investment accounts, trust accounts, IRAs, and other types of investment accounts, including retirement plans (401k, 403b). For these clients, the monthly fee is billed directly through the accounts at Folio Institutional.
Regardless of how many assets are under management, we always start with planning.