In the early 1990’s the investment industry was changed forever when the deregulation of brokerage commissions led to the creation of Discount Brokers. In addition to offering Much Lower Fees and Commissions these new firms let individual investors hold No-Load Mutual Funds and Exchange Traded Index Funds (ETF’S) in the same account making it possible to easily invest into markets and specific sectors worldwide with No Minimum Investment and Very Low Expenses.
Fund investments are Completely Liquid have Full Disclosure of their Expenses and Performance over different time periods can be Much Less Volatile than individual stock positions and make it easy to Diversify Portfolios of any size. Over the years funds have become by far the most popular investments for individual investors conservative, long-term Retirement, Trust, and Custodial portfolios.
Performance Tracking Inc. (PTI) is a family-owned registered investment advisory practice that was founded in 1992 to offer individual investors true Discount Brokerage Services and Managed Fund Portfolios at the Lowest Possible Cost.
Managed Fund Portfolios are offered by virtually every bank, insurance, brokerage, or financial planning firm. These accounts can charge fees of 1.5% or More of the total value of the account Every Year and Breakpoints For Reduced Fees don’t typically apply until the account value is at least $250,000. The value of multiple family accounts (IRA’s, Trust, Custodial etc.) are not usually combined to reach these important fee breakpoints.
Managing a fund portfolio of $250,000 does not take 10 times more work than managing a $25,000 portfolio and investors should not pay an Annual Fee that is 10 Times Higher simply because they have a larger account.
Management Fees and Breakpoints should be much lower.
Financial Planning is very important for everyone, but investors should Beware of Salespeople who are under pressure from their firm to use the “Planning Process” as a tool to sell managed accounts with Very High Fees. There is no evidence that paying higher fees leads to consistently higher returns than the simple, low-cost Performance Tracking Strategy described under “PT Portfolios”.
Portfolio Management and Financial Planning should be viewed Independently.
PTI is a Fiduciary without any of the Conflicts of Interests that continue to be a problem in the brokerage, insurance, and financial planning industry. Accounts are held at TD Ameritrade Institutional/Charles Schwab Advisor Services. Research is provided by Morningstar Inc., Performance Reporting by Captools Inc.