|
...................................
Our Investment Approach
Hedge Funds
Asset
Allocation
Investment
Challenges
Dynamic
Asset Allocation
Published
Articles
|
........................................................................................................................
FEE STRUCTURES
We
have found our fee-based practice to be quite competitive given
the comprehensive financial, retirement and estate planning services
provided. Indeed, we employ a sliding scale fee structure that
rewards clients with an incrementally lower fee percentage as
their assets grow. After analyzing client financial portfolios
and implementing composition changes to achieve a dynamic passive
investment style, we have also found that the reduction in our
clients’ existing maintenance expenses from the pre-existing portfolio
typically offsets the cost of our fees. Indeed, according to Lipper
Inc., the median total expense ratio on mutual funds at the end
of 2001 were 1.26%, and this does not include hidden loads and
other miscellaneous processing fees by advisors. Clients that
have retained Montecito Capital Management often find their overall
costs decrease as we shift to a dynamic asset allocation style
of applied exchange traded and index funds - again, studies show
that over 90% of the return is attributable to proper selection
of and allocation between asset classes, our specialty (see portfolio
management). In the end, our clients’ risk-adjusted return
typically increases, their financial plan is established and all
their retirement needs are served to the best of our ability.
As your financial partners, we are engaged as active participants
in every financial decision, from your retirement strategies,
house, car, to your children’s educational needs.
Annual
Fee Schedule:
| Portfolio
Size |
Fee as %
of Portfolio |
| $0-$500,000 |
0.95
|
| $500,001-$1,000,000 |
0.85 |
| $1,000,001-$2,500,000 |
0.75 |
| $2,500,001-$4,500,000 |
0.65 |
| $4,500,001-$7,000,000 |
0.55 |
| $7,000,001-$10,000,000 |
0.50 |
| over
$10,000,000 |
0.45 |
The fee for
ongoing financial planning services is a flat dollar amount that
is also based on the complexity of your situation and our estimate
of how much time it will take us to provide services to you. The
fee is billed semi-annually and is payable at the beginning of
each billing period. If necessary, we can deduct the fee from
your IRA. Fees paid for investment advice that does not relate
to the production of tax-exempt income, or for tax planning (which
includes federal and state income, gift and estate taxes) are
generally deductible as a miscellaneous itemized deduction under
the Internal Revenue Code.
Disclaimer:The information
in this website is based on data gathered from what we believe
are reliable sources. This Web site is intended to give you information,
not investment advice. We do not guarantee its accuracy, nor completeness,
and it is not intended to be the primary basis for investment
decisions. It should not be construed as advice meeting the particular
investment needs of any investor. We may express opinions in this
site and elsewhere about allocating investments between asset
classes. This is NOT a specific investment recommendation to any
person or entity. We do not make 'personal investment recommendations'
to people or entities except to those who have engaged us expressly
for the purpose of providing professional investment advisory
and/or other financial advisory services. The process of making
specific and personal investment recommendations involves a close
understanding of our client’s objectives and expectations. Unless
we have this information, we are UNABLE to make ANY personal investment
recommendations.
wealth management santa
barbara ventura los angeles
|
