Our fixed retainer fees range from $4,000 to $12,000 per year per client relationship and include complete advisory services.
According to a 2019 study, the industry average investment advisory fee is 0.96% annually*. This means that an investor with a $2 million portfolio may pay $19,200 annually to the advisor managing the investments ($3 million = $28,800 annually; $4 million = $38,400 annually, etc.).
Through experience, we have found that it does not cost a firm more to manage a $4 million portfolio than a $2 million portfolio. So why should clients pay more to receive the same services?
We offer simple and transparent flat-fee advisory services based on the complexity of your financial situation and the services we provide, rather than on your assets.
The difference between a typical 0.96% investment advisory fee and a flat annual retainer fee over a long period can be overwhelming. Suppose we assume a 7% return on a portfolio **. In that case, a 0.96% advisory fee can cost an investor with a $2,000,000 portfolio over $1,000,000 in lost returns over twenty years compared to a flat annual retainer fee of $8,000.
*2019 RIA Industry Study: Average Investment Advisory Fee is 0.96%. www riainabox com resources/2019-ria-industry-study-average-investment-advisory-fee-is-96-percent.
**A hypothetical example assumes a 7% return on a $2 million portfolio with a 0.96% advisory fee vs. an $8,000 flat fee. Actual results will vary.
We may offer the advisory fee based on a percentage of assets under management, rather than a fixed fee, equal to 1.00% – 1.25% per annum, in situations where a fixed fee may not be appropriate (e.g., the minimum fixed fee exceeds 1.25% of the assets to be managed).
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Octo Capital, LLC is an SEC-Registered Investment Adviser.
31600 Telegraph Road, Suite 200, Bingham Farms, MI 48025
Phone: 248-731-7729
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