Our Fees in Comparison to Other Options:
We are paid by you, not by fund companies or anyone else. This means you can be assured we are independent, objective, and working in your best interest. We are motivated by your success, not the mutual fund companies who pay the highest commission rates.
Some advisors charge a fee for investment management and layer on an additional fee for financial planning. We don’t believe in piling on the fees, so our clients receive both investment management and comprehensive financial planning for one cost-effective rate.
Other Option #1 – Go it Alone:
You do all your own financial planning, portfolio construction, and monitoring/rebalancing of your financial plan and investments. Does this sound like fun? Is this how you want to spend your valuable free time? If not, there’s an alternative that shifts the work off your shoulders and may save you money at the same time. Consider, would you rather pay a 1.27%* fee for no advice or a 1.11%* fee for unlimited advice?
In 2012, the average expense ratio for a mutual fund investing in a blend of stocks and bonds was 1.27%*. In addition, you may also pay a load or commission fee on top. Not to mention, mutual funds are really poor communicators that don’t offer personalized advice or any financial planning.
The blended expense ratio range for our portfolios is currently 0.07% – 0.11%*. Adding our initial advisor fee of 1.00% (your effective fee percentage may be lower), our total expense range might be 1.07% – 1.11%. And you get a dedicated advisor and customized comprehensive financial planning in the deal too. There’s no limit on advice, so ask away!
These numbers don’t even mention the time you will save. How much would your life improve if you could shift more time and focus towards family, friends, hobbies, community, and charity? You can’t delegate these priorities, and even if you could, you’d never consider it. On the other hand, hiring a qualified financial planner frees time and energy for the people and activities you value the most. Plus, I’m willing to bet you find these priorities much more enjoyable than developing and maintaining your financial plan.
Other Option #2 - Hire a Competing Advisory Firm:
Instead of the solo route, you could hire someone to oversee your financial plan. In this case, would you rather pay 1.32%* or 1.00% to your fee-based advisor? In 2010, fee-based advisors in North America charged an average percentage of 1.32%*. In comparison, our fee is 1.00% on the first million of managed investments and decreases from there.
Further breakdown of average fees charged by fee-based advisors in North America dependent upon client household asset size:
|Household Assets||Average Fee Charged*|
|$100,000 – $250,000||1.60%|
|$250,000 – $500,000||1.47%|
|$500,000 – $1 Million||1.32%|
|$1 Million – $2 Million||1.17%|
|$2 Million – $3 Million||1.07%|
*Investment Company Institute®. 2013 Investment Company Fact Book. 2013. pp 80. In 2012, the average expense ratio for a hybrid mutual fund investing in a blend of stocks and bonds was 1.27%.
*As of December 31, 2014, the net expense ratio range for Jarus Wealth Advisors LLC Model Portfolios was 0.07% – 0.11%. Adding the initial advisor fee of 1.00% (effective average fee charged may be lower), our total expense range is 1.07% – 1.11%.
3PriceMetrix. 2011. “Fee & Managed Asset Pricing.” pp 5 – 6.
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Jarus Wealth Advisors LLC
7545 Irvine Center Drive, Ste. 200, Irvine, CA 92618
Phone: (949) 556-3669