We are compensated on
a fee-only basis, calculated as a percentage of
client assets under our management. This is an all-encompassing
fee, including all aspects of our 10-Step Service
Process.
Here is our management fee schedule. Note that larger
accounts are charged a significantly lower fee percentage.
| Account Balance |
Annual Fee |
| Up to $199,999 |
1.85% |
| $200,000 to $499,999 |
1.25% |
| $500,000 to $999,999 |
1.00% |
| $1,000,000 to $1,999,999 |
.90% |
| $2,000,000 to $2,999,999 |
.80% |
| $3,000,000 or greater |
.70% |
The annual fee for plan services
will be charged as a percentage of assets within
the plan. Typically, the annual fee will be 75%
(seventy-five percent) of the above quoted fees
for investment management services, but generally
not not higher than 1.00% (one percent) for account
set up through the RPSPs.
There are no other hourly charges
or "nickel and dime" fees. We do not receive
commissions or referral fees, so our complete independence
is assured.
How our service affiliates are compensated:
_ BAM Advisor Services is paid directly by us for
the services they provide to us.
_ Schwab Institutional and Fidelity Investments
which provides custidial services on client accounts,
changes a transaction fee of about $35 for purchases
and sales of mutual funds.
_ Dimensional Fund Advisors is compensated through
the internal expense ratio of their funds. For a
typical portfolio, this cost is about .37% of assets.
Our Fees are Reasonable
Investors currently using a stock broker's separate
account managers or proprietary mutual funds are
frequently paying twice the total cost of using
KB Investment Advisors.
Even do-it-yourself mutual fund investors may have
higher costs. The annual internal expense ratio
of the average mutual fund is about 1.53%, a price
that includes no personalized advice.
Our clients, on the other hand, enjoy:
_ a long-term planning relationship with an experienced
CFP advisor
_ a written investment plan
_ tax management and rebalancing assistance
_ a globally diversified portfolio
_ access to Dimensional Fund Advisors institutional
funds
_ Schwab or Fidelity's custodial services
They receive these benefits for a total cost that
is no greater than buying most mutual funds over
the phone on a do-it-yourself basis.
