Management Fees

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.

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

Lower fees are the most direct way to improve the long-term performance of any portfolio. 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 www.adviserinfo.sec.gov. 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.
There is a flat $25 monthly fee for accounts that only hold self-directed individual stock or bond positions.

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.
  • If all family accounts are not combined an investor could easily pay an extra 1% or more in annual fees. This would be an additional $1,000 for families with combined accounts worth $100,000 and cost families with account values over a million an unnecessary $10,000 or more Every Year.