Advisory Services and Fees
SFG earns its compensation by providing investment advisory and financial planning services. Fees are earned as a percentage of assets under management.
Investment management services fees are as follows:
Assets Under Management Annual Fee
$0 - $500,000 1.00%
$500,001 - $1,000,000 0.80%
$1,000,001 - $3,000,000 0.60%
$3,000,000 + 0.40%
This is a tiered fee schedule such that a $500,000 account would have fees of $5,000 per annum, a $1,000,000 account would have annual fees of $9,000 ($5,000 + $4,000) and a $3 million account would have annual fees of $21,000 ($5,000 + $4,000 + $12,000).
A client who hires SFG for investment management services will also receive financial planning services as part of a comprehensive program. The minimum account size for investment management services is $500,000 and the minimum annual fee is $5,000. In addition to the management fee for SFG’s services, the client is also responsible for, but not limited to, trading costs, commissions, mutual fund expenses and mark ups or mark downs.
Investment or Brokerage Discretion
SFG has the authority to determine, without obtaining specific client consent the securities to be bought or sold and the amount of the securities to be bought or sold. SFG does the majority of its trading through the institutional arm of Charles Schwab & Co. Due to the size of the relationship that SFG has with Schwab our clients trade stocks through Schwab at a flat rate of $9.95 per trade and there are no trading fees for mutual funds in most cases.
SFG does not receive any forms of referral fees, commissions, rebates, 12b-1 fees or bonuses from any outside sources. The only compensation we receive is from our client and is fully disclosed.