Fees & Service Models
Our client relationship begins with fee-only investment management (we earn no commissions on any financial products of any sort). Most client relationships include financial planning, retirement planning, and holistic wealth management which includes retirement income planning, tax optimization, risk management, loss prevention, and legacy planning (also known as estate planning). It is not possible optimize a client's investment experience without the underlying planning which answers the questions of how to manage a portfolio - and why.
Our relationship options generally begin for portfolios of $ 500,000 and above, and include portfolio management, proactive communications, ongoing economic and financial workshops, basic financial planning, and dynamic performance reporting through a website that you can access 24/7. For investors who desire a holistic approach, Financial Planning and Wealth Management Services are available as described on their pages for no additional fees.
Our Fees are as follows. Most clients choose to have their fees are billed directly from their investment portfolios and has no impact on their monthly living expenses. Performance is reported NET (after) these fees. As fees have an effect upon overall return, one of our main focuses in managing your investments is to keep your investment costs (called "expense ratios" and trading costs) as low as possible in order to maximize your return. Investment Adviser fees are considered an investment expense, and may be tax deductible depending upon your situation. Consult with your tax advisor.
|Managed Asset Level, in US Dollars||Annual % Fee|
|0 - 1,000,000 ($500,000 Minimum)||1.25% on first 1,000,000|
|1,000,000 - 2,500,000||1.00% on next 1,500,000|
|2,500,000 - 5,000,000||0.40% on next 2,500,000|
For more information on PARAGON's investment strategies, please see the How We Invest page.
Monthly/Quarterly Retainer Option
Occasionally, a client may not have significant assets available to transfer to our custodians (Fidelity Institutional, or TD Ameritrade Institutional) for management - but would still benefit from wealth management services. Perhaps their money is "tied up" in 401(k) plans, private business accounts, dynasty trusts or foundations, or they are high income earners desiring to build wealth. If this is your situation, we can still work together. We will provide our services for a negotiated retainer that is agreeable to both parties. It works very similar to a subscription to any other service, and can be paid by bank draft, credit card, or invoice.
We DO NOT offer an "hourly fee" or a "project fee" (pay for a financial plan) option. Our services are designed to be cost-effective for clients who desire ongoing planning and optimization, and wish to delegate the complex task of investment management to a professional firm, and then oversee it from an "owner" standpoint.
We have done extensive market research and know that our fees are highly competitive for the level of service that we offer. While we are fee-only, we do not offer an "hourly-rate" or "pay for plan" service. Considerable research went into this decision. After offering a "pay for a plan, do your investments yourself, then check back with us in a few years" option in the past, and watching those clients struggle and lag behind our other clients in virtually every area of financial success, we eliminated that service option. In our opinion, this service model distracts our team from delivering an extraordinary service and investment experience to all clients, all the time.
Firms who offer "one-off" plans or a "do it yourself with hourly consulting" service may often:
- Have no way of ensuring their recommendations are implemented
- Be unable to provide accurate performance reporting
- Have no way to respond effectively to rapid market or economic changes
- Forego investing in the infrastructure and technology designed to maximize portfolio returns and minimize errors
- Be unprepared to step in in the event of their client's death or incapacity
- Have little or no relationship with client family members
- Struggle to coordinate with a client's other professional advisors (CPA, attorney, etc) because the relationships are not already in place
- Deliver a lower level of client service because they are distracted by miscellaneous, time-consuming "one-off" projects instead of proactively focusing on their clients' well-being
- Have clients avoid calling, emailing, returning phone calls, or asking questions because they don't want to get a bill for the advisor's time.
Simply put, our experience has taught us that hourly work and one-off planning is an inferior service model, and we do not offer it.
If you desire a comprehensive relationship with your advisor, we encourage you to see for yourself if PARAGON is right for you.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
Investment Advisory Services Provided by Paragon Wealth Strategies, LLC, a registered investment adviser.