Pricing Schedule/Information
What Makes Us Different
Our take on financial planning and money management is a refreshing
approach that you’ve likely not heard of before. In addition to our online platform,
which makes our service extremely affordable and convenient, one of the primary
things that make Plan & Act different from most other services is that we do NOT
accept commissions from the funds we recommend as part of your investment strategy.
Instead, clients pay a management fee for our service, which enables us to be their
objective and independent partner in the financial planning and money management
process.
Following the holistic approach of the Cambridge financial
planning system, Plan & Act takes all of your assets into consideration when making
our investment recommendations. It’s these "Assets Under Advisement" that determine
the cost for the service. These assets generally include items such as cash, stocks,
bonds, mutual funds, retirement accounts (including IRAs and 401k accounts), etc.
Our process ensures that we take a complete inventory of all
of the various assets you own and then, from a “big picture,” our system will help
to determine the best mix and allocation for you and your family. Because there
is an obvious lack of “commissions”, this fee-only approach ensures that we remain
objective in our recommendations and maintain our fiduciary status, keeping your
best interests in mind at all times.
The Danger of Commission-Based Investment Advice
While some fund companies provide financial incentives to
investment professionals on the sale of their products (i.e. “commissions”), it’s
difficult to claim true financial independence and objectivity when you’re getting
compensated by the very products that you are selling. Even when the product is
indeed the best fit, there’s always the “hint” of the commission influencing the
recommendation. When your personalized Plan & Act Financial Plan recommends a particular
investment product, you’ll take comfort in knowing these recommendations are being
made because we believe they are in YOUR best interests. No commissions. No incentives.
Just sound financial advice that puts you first.
Be assured that before ANY fees are charged, you'll be provided
with an easy to understand list of what assets will be under advisement by the service,
and as such, how any fees will be calculated.
What Does It Cost To Have Plan & Act Manage My Money?
The fee Plan & Act charges clients depends on the amount of
Assets Under Advisement. If your total assets are $500,000 or less, you will be
charged 0.75% per annum. If you have more than $500,000, the fee is then based on
a tier structure, and amounts in excess of $500,000 are charged a reduced rate of
0.50% per annum.
To help clarify what this means to you, we’ve created the
table below as an example so you can see the difference between someone with less
than $500,000 (Client A) and also someone that is over that amount (Client B).
Example:
|
|
Assets Under Advisement
|
Fee Basis
|
Cost
|
|
Client A
|
$250,000
|
$250,000 @ .75%
|
$469
|
|
Client B
|
$650,000
|
$500,000 @ .75% plus
$150,000 @ .50%
|
$1,125
|
Detailed Breakdown
Since the cost of any service is important, we want to make
sure everyone is on the same page. Below are some more detailed explanations of
what some of these terms mean.
Assets Under Advisement – These are the total assets
that a client has which can be advised by the service. Examples would include (but
may not be limited to) stocks, mutual funds, money market accounts, retirement accounts,
401k, etc.
Fee Basis – Calculated on a “tiered” basis, the first
$500,000 of assets is charged 0.75% per annum and assets in excess of $500,000 are
charged 0.50% annum.
Cost Calculation – In the above example, Client A has
$250,000 in assets that will be under advisement by Plan & Act. They are charged
$250,000 x 0.75% = $1,875 annually, or $468.75 per quarter. Client B, on the other
hand, has $650,000 of assets that will be under advisement. They are charged the
“tiered” rate, and charged $500,000 x 0.75% ($3,750) plus $150,000 x 0.50% ($750)
for a total of $4,500 annually, or $1,125 per quarter.
Payment Methods - All fees are billed quarterly and
can be paid directly out of your investment account, credit card, PayPal or direct-debited
from your checking account.
Additional Fees? – While there may be other transactional
or account-related fees charged as part of the money management process, it’s important
to remember that as your independent and objective financial partner, Plan & Act
does not benefit financially from these fees. Remember, NO commissions are accepted
by Plan & Act as part of our service. We keep your best interests in mind at all
times, not how much in fees we can make by selling a particular security or investment
product.
Our Commitment
Plan & Act is committed to providing a comprehensive financial
planning and money management service that protects our clients' financial interests
for an affordable, easy to understand fee. For questions on becoming a customer
and other account-related information, please refer to our Client Agreement for
complete details. Or, sign up for your own Personal Financial
Plan to get started today!