Management Fees

Turnkey Asset Management Programs (TAMPS) 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 fee breakpoints.

Managing $250,000 does not take 10 times more work than managing $25,000 and investors should not pay an Annual Fee that is 10 Times Higher simply because they have a larger account.

Financial industry Management Fees and Fee Breakpoints should be much lower.

Investment/planning firms can make it very difficult for investors to find their fees on their website, but investors can easily see the fee schedule for any registered investment advisor on the firms ADV part 2 Disclosure Brochure at Go to the firm tab and type in the firm name and hit search. In “More Details” select “Part 2 brochure”. Fees and Commissions are under item 5.

PTI’s annual fee for research, tracking, reporting, and management.
3/4 of 1 Percent up to $100,000 – Only $7.50 per $1,000.
3/8 of 1 Percent from $100,000 to $500,000 – Only $3.75 per $1,000.
1/8 of 1 Percent over $500,000 – Only $1.25 per $1,000.
For self-directed accounts with no managed fund positions there is a flat monthly fee for research, posting transactions, printing, and mailing monthly updates of $25. However, if the account value is less than $40,000 the monthly fee would be .000625% (3/4 of 1% a year). For example a $25,000 account would pay $15.63 a month not $25.

Points to consider when Comparing Fee Schedules

  • There is No PTI Fee on the value of individual Stock or Bond positions Managed By The Investor.
  • There is No PTI Fee on uninvested Cash in the money market.
  • PTI Fee Breakpoints apply to the Combined Value Of All Family Accounts (Joint, Single, IRA’s, Rollovers, Trust, Custodial etc.) and start at just $100,000.
  • For a family with a number of managed accounts that have a combined value of $300,000 the PTI annual fee would be $1500 (.50%). If these accounts were handed off to 3rd party managers and were not combined to take advantage of fee breakpoints the annual fee could be 1.50% or $4,500. $3,000 More Every Year. This only makes sense if the 3rd party portfolios outperformed the PT Portfolios by at least $3,000 every year, Forever.

    Lower Fees
    are the most direct way to improve performance.