Fees

FIXED FEE SCHEDULE:

Investment plan plus ongoing portfolio management for married couple/domestic partners: $2,500/year payable in quarterly installments, in arrears.

Investment plan plus ongoing portfolio management for individual: $2,000/year payable in quarterly installments, in arrears.

Clients choosing the investment plan plus ongoing portfolio management services receive the plan development service described below (no additional charge for the plan) plus an ongoing relationship where the firm assists with implementation of the plan. These clients are requested to engage the firm with the intent (but not the requirement) to maintain the relationship for at least one year. Clients will be billed at the end of each calendar quarter, prorated appropriately where the engagement did not include the entire previous quarter. If the contract ends, clients will be billed at the time of termination rather than at the end of that calendar quarter.

Investment plan for married couple/domestic partners: $1,900, payable upon plan acceptance.

Investment plan for individual: $1,400, payable upon plan acceptance.

An investment plan contains a customized investment policy and a recommended set of investments coordinated across the client's various investment accounts. It also has a proposed action plan for which the client assumes sole responsibility for implementing. Investment plan clients are encouraged to contact us with questions about their plan for up to one year after the plan is accepted.

HOURLY FEES

In most cases we recommend that clients choose one of the fixed fee options as they generally allow for more effective service as well as a lower total cost to the client. However for hourly rate engagements that might be appropriate in some situations, typically fees are $200/hour.

Introductory 60-minute client meetings are provided at no charge and with no obligation. Should we later agree to formalize an advisory relationship, the applicable fee schedule is described on this page. Because our recommendations often reduce investor costs (expense ratios, taxes, transaction fees, commissions, etc.), a commensurate improvement in after-tax returns is likely over the long term and many clients discover the cost savings outweigh the fees paid to Pragmatic Portfolios, LLC.

Pragmatic Portfolios, LLC designed its unique flat fee-only pricing model in order to best serve our clients:

  • To help ensure our loyalties are directly aligned with our clients' situations, goals, needs, and objectives. By charging only flat fees, serving the best interests of our clients is our only goal. We have no incentive to recommend changing form or custody of assets, other than where it would best serve the interests of our clients.
  • We are not forced or pressured to recommend only a specific provider’s investment options. Instead we are free to recommend only investments we truly believe are in the best interests of our clients.
  • Another benefit of our fee structure is we're ready, willing, and able to provide advice on client accounts not directly under our management.
  • Our pricing model allows us to steer clear of complicated (and expensive!) investment vehicles and instead focus on the those that are likely to be of more benefit to investors over the long haul.

Among the fee arrangements described on this page, the firm focuses primarily on the Investment Plan Plus Portfolio Management service.

All fees are negotiable. For client relationships that don’t fall cleanly within the categories described on this page, the firm will negotiate a fixed fee appropriate for the particular situation. In certain cases, we may modify our fees or provide some pro bono services depending upon client circumstances. In particularly complex client situations the fixed fees may be somewhat higher than the standard rates listed on this page.

HOW WE COMPARE

Our fees compare very favorably to those of most other advisers. For example, many investment advisers and brokers have a portfolio management fee structure based on a percentage of assets under management (“AUM”). AUM-based fees don’t make sense to us, as our level of effort does not change proportionately with AUM. Often times the level of advisory effort is similar whether your AUM are $500,000 or $5,000,000, so we do not our vary fees proportionately with AUM. Therefore when your investments grow, the fees to Pragmatic Portfolios as a percentage of AUM shrink dramatically. Please see the following table for examples comparing our low portfolio management fees to those of an adviser charging 1% of AUM annually:

Client Type Assets Under Management ("AUM") Annual Portfolio Management Fee of Pragmatic Portfolios, LLC (includes plan design) Annual Portfolio Management Fee of Another Adviser That Charges 1% of AUM (may or may not include plan design)
Single $100,000 $2,000 (2.00%) $1,000 (1.00%)
Single $300,000 $2,000 (0.67%) $3,000 (1.00%)
Single $1,000,000 $2,000 (0.20%) $10,000 (1.00%)
Single $3,000,000 $2,000 (0.07%) $30,000 (1.00%)
Single $5,000,000 $2,000 (0.04%) $50,000 (1.00%)
Couple $100,000 $2,500 (2.50%) $1,000 (1.00%)
Couple $300,000 $2,500 (0.83%) $3,000 (1.00%)
Couple $1,000,000 $2,500 (0.25%) $10,000 (1.00%)
Couple $3,000,000 $2,500 (0.08%) $30,000 (1.00%)
Couple $5,000,000 $2,500 (0.05%) $50,000 (1.00%)

In addition to our fees, clients will also incur management fees and other expenses charged by mutual funds and exchange-traded funds that may be bought for client portfolios. Custodians may also charge fees and commissions to clients.

Please see our Frequently Asked Questions for further information on our fee structure, or contact us if you have any questions.