Financial Advisor Fees & Service Models
Our relationship options begin for portfolios of $ 500,000 and above, and include Financial Planning and Wealth Management Services as described on their pages, with no additional fees to PARAGON.
Most clients choose to have their fees billed directly from their accounts so as to have no impact on their monthly cash flow. Performance is reported NET (after) these fees. A primary focus in managing your investments is to keep your investment costs (called "expense ratios" and trading costs) as low as possible to maximize return.
| 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 |
| 5,000,000+ | Negotiable |
Please note our fee schedule is tiered, and is very cost effective. For example, the aggregate fee on a $5 Million portfolio is only 0.75% because the last $2.5 Million is only charged 0.4%, and includes ALL comprehensive wealth management services, including Recession Protocol™, at no additional charge. With PARAGON's low cost portfolios, the total cost of PARAGON's services, including investment costs, often comes in BELOW the expense ratios of many most equity mutual funds.* Sometimes, after a thorough cost analysis of a perspective client's existing portfolio - becoming a PARAGON client may actually cost less than keeping the investments where they are!
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 custodian (Fidelity 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 extremely cost-effective for clients who desire continuous wealth management, and wish to delegate the complex tasks of investment management to a professional firm, and then oversee it from an "owner" standpoint.
We have done extensive market research and are proud that our fees are highly competitive for the level of service that we offer. However, we do not offer an "hourly-rate" or "pay for a plan" service. Considerable research went into this decision. After offering those 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. Also, serving occasional, one-time clients significantly distracts our team from delivering an extraordinary ongoing experience to all clients, all the time.
Financial firms who do offer "one-off" plans or a "do it yourself with hourly consulting" service typically:
Have no way of ensuring their recommendations are implemented correctly and cannot monitor the results of their recommendations
Cannot provide accurate performance reporting
Cannot respond effectively to rapid market or economic changes
Forego investing in the infrastructure and technology necessary to maximize portfolio returns and minimize errors
Are unprepared to step in in the event of their client's death or incapacity
Have little or no relationship with client family members at a time when that relationship is critical
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 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 adviser's time.
Additionally, if you are paying a firm the hour - how truly concerned are they about your wealth? Whether your assets grow or shrink - you pay them either way, so why should they care? On the other hand, a fiduciary firm whose income is dependent upon their clients' success is far more likely to be in tune with the markets and economic factors which drive portfolio growth - or market losses.
If you desire a comprehensive relationship with your financial advisor, we encourage you to see for yourself if PARAGON is right for you.
*Investment Company Institute Factbook www.icifactbook.org
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 and adhere to a fiduciary standard when performing financial planning duties.
Investment Advisory Services Provided by Paragon Wealth Strategies, LLC, a registered investment adviser.