Overview: FeeSmart

Overview: FeeSmart

High fees aren't just a slow and steady headwind to your portfolio. High fees force increased portfolio risks.



I frequently see investors paying asset-based fees to their “financial” advisors that exceed 1%. 1% may not sound like a lot, but when you translate it to dollar amounts, 1% can be quite significant.


Directly From Your Pocket

For example, a $5,000,000 portfolio, at 1%, will cost you $50,000 per year or $500,000 over ten years! This is not to say that independent, objective advice isn’t valuable - because it can be extremely beneficial. However, if you believe in passive investing strategies, any asset-based fee over .5% is a very costly way to pay for that advice.


The Indirect Cost

Another, less obvious way, high fees can hurt you is that many investment advisors will take more risk with your portfolio to justify their fees, which means you now have double the ways to lose!

For example, if you hire an advisor that charges 1% and they invest in the PIMCO Total Return Mutual Fund*, with an annual cost of 0.46%, you now have a total yearly expense of 1.46% BEFORE you earn anything.


A Better Way of Investing

At WealthFactor, we leverage modern technology to efficiently manage investments for our clients and only charge .35%. Rather than hiring PIMCO to buy bonds for you, we’d prefer to invest the funds directly in less risky investments such as Treasuries. You’d get the benefit of professional, institutional quality advice for a small fraction of the cost, all without taking unnecessary risk in the process.

WealthFactor’s focus on fee efficiency maximizes the probability of achieving your investment goals.



Click here for important Disclosures and Disclaimers: https://www.wealth-factor.com/disclosures-and-disclaimers


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Lake Oswego, Oregon

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2020 BY WEALTHFACTOR - All Rights Reserved 

*Important Disclosures and Disclaimers: No assurances can be made that WealthFactor will be able to achieve its investment objectives or avoid losses. WealthFactor is a Registered Investment Advisor. The information on this website is not intended as tax or legal advice. The information on this website is intended for residents of Oregon. This information is not intended to be personalized and as such should not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular investment strategy. WealthFactor is licensed with the State of Oregon and will seek proper licensing or exemption from licensing before conducting business in any state.  ADV Disclosure documents available upon request.  Click here for additional disclosures.  Click here for definitions.