Fees & Costs
For Investment Advisory
We firmly believe that wire house brokerages and many investment adviser firms overcharge for the services they provide. Moreover, they overcharge for their services in a way that is purposefully hidden or confusing. Most advisers will only tell you about their management fee but you are also paying fees for stock trades and mutual fund management. That does not happen at Veritas Planning Group. We strive to provide excellent investment advice at a low, transparent price.
| Fee Comparison | ||
|---|---|---|
| Industry Average | Veritas | |
| Adviser Fee | 1.22%1 | 1.00% |
| Loads/Commissions | Varies | None |
| Fund Expense Ratio | 0.9%2 | 0.18%4 |
| Trading Costs (SAI) | 1.44%3 | 0.25%5 |
| Total | 3.56% | 1.43% |
This table is for illustrative purposes only and is not representative of any specific investment program, mutual fund, or Veritas portfolio. All fees are based on historical data and current fees may vary.
- Based on Rydex Advisor Benchmarking Study (2008)
- Morningstar FundInvestor newsletter (April 2010)
- Based on March 2007 study conducted by Virginia Tech, University of Virginia, and Boston College. See "Scale Effects in Mutual Fund Performance: The Role of Trading Costs"
- Approximation of expense ratios of funds utilized. Expenses may vary
- Based on account size of $500,000
Advisory Fees
Investment Advisory Fees are those fees an investment adviser charges to profile a client and then construct, monitor, and rebalance the client's portfolio. At major wire houses, these fees can be as large as 1.5%-3.0%.
Loads/Commissions
A commission paid to a broker by a mutual fund when shares are purchased. Fees to watch out for include: Front-End Loads, Back-End Loads and 12B-1 fees.
Fund Expense Ratio
These are the fees that mutual funds and ETFs charge to manage money that is invested in their funds. Active fund managers typically charge between .75%-2.0% for their fund management services. Passive index funds usually charge between .15%-.70% for their fund management services.
Trading Charges (SAI)
Another area where investors get "dinged" is in the fees and expenses listed on the Statement of Additional Information (SAI). These are fees and expenses that result from trading activity (e.g. brokerage commissions, the cost of trading against a spread, etc.).
Adding It All Up ("All-In" Fees)
When added together, the fees associated with brokers and advisers that use an active investment management approach can be overwhelming. In some cases, the "all-in" fees associated with advisers using an active investment strategy can reach 3.0% or more. With Veritas, your "all-in" fees will be substantially lower. That savings goes straight in your pocket. The compounding effect of those savings can be huge over time. With Veritas, you benefit from top-tier active management with an "all in" fee that is substantially lower.