Fees: Is Cheaper Better?

So You don't like to pay fees? We get that. Neither do we.  We understand that for the most part people do not like to pay fees for many services but going to see the doctor, lawyer, accountant, mechanic, etc. is necessary to find a solution for what ails you. Like those other professions, we charge fees for exchange of value. That value relates to what is arguably the most important element of your life: YOUR MONEY.

In 1998, John added Registered Investment Advisor fee based services, with the conviction that  charging fees , as opposed to the traditional commission based brokerage approach was in the best interest of the clients.  John understood that most investors were not even aware of what they were being charged and in addition to being better informed, he wanted to remove the conflict of interest inherent in selling a product to a client by sitting on the same of the table as his clients.

In the more traditional approach there is a belief that the investor is getting something for nothing. Now let's be clear, nobody works for free. In the world where charges are hidden or characterized as something other than what they are, the professionals at Moore & Burkhardt Wealth Management do not like surprises and we know that clients do not as well. When products are sold there is an exchange of money for services that is often not clear as to how it impacts the investor. John has always believed that clients should be informed about all elements of life and through the fee based approach he could clearly inform clients about what the exact charges would be.

We are sensitive to expenses and take that into consideration as we give guidance, yet we do not adhere to the simplistic philosphy that "a lower expense translates into higher returns". Some investment companies and advisors use this theory as a marketing gimmick to entice investors.  Focusing on one variable will hinder your ability to reach your goals. Rather than find the cheapest option we prefer to find those investments that are best suited to your need. We charge for that and believe that this best serves our client's needs.

We encourage clients to take a look at the fees that they are being charged by their current advisor and compare them to our schedule. We are confident that our fees are competitive and are worth what we charge. Perhaps more importantly we encourage investors to compare the level of service that is provided for a fee. We simply to not hold your funds in an account, let them sit idle or have a computer do periodic trading. We believe that you should be aware of the value of what we provide.

We charge based on the amount of asset upon which we give investment advice and for helping guide the many important areas of your life. Here is what is given for the consideration that we receive:

1) An analysis of your existing financial account and a plan that is created relative to your goals and risk disposition. We often find that client have little understanding of the risks that they have in a portfolio.

2) A financial planning process specific to each client that will help you create the picture that you want life to look like and a plan to help you determine the probability of making that happen.

3) Advice relative to the various elements of the financial planning process including but not limited to: real estate, taxes, investments, insurance, estate planning, Wills & Trusts, etc.

4) Secure On-line access to your financial plan 24/7 with your own password protected log in. The financial planning program, MoneyGuide, has a direct feed from the various investments that we use and the investments are updated daily. You can also link any other bank accounts, credit cards, mortgage, etc. This give us the opportunity to provide you a comprehensive plan for any life goals you may have such as college planning, retirement planning, and estate planning, etc.

 

 

Asset Fee Table

Initial Interview: No charge is rendered for the initial interview for up to 1/2 hour. "initial interview" implies that no advice shall be sought or given but that the Client(s) shall have an opportunity to determine whether they wish to retain the financial advisors at Moore & Burkhardt Wealth Management for advice, counseling or other work.

 

Account Value             Fee Value

$0.00             --------------   1.00% 

$1,500,000    --------------     .90%                              

$2,000,000    --------------     .80%

$3,000,000    --------------     .70%

$4,000,000    --------------     .60%

$5,000,000    --------------     .50%

$10,000,000  --------------     .40%   

 

Accounts less than $50,000 will be charged an additional fee of $15 per quarter.  

Plans requiring extensive review will be assessed an hourly fee in addition to the basic rate, subject to prior agreement by client and the financial advisors at Moore & Burkhardt Wealth Management