We believe evidence, not emotion, is paramount to investing prudently. Our approach to asset management is based on:
- The principles of Modern Portfolio Theory
- The research of renowned Nobel Laureates such as Eugene F. Fama, Harry Markowitz, Merton Miller, and Myron Scholes
- Extensive research and findings from the Fama/French 3-Factor Model, which are based on over 70 years of historical data
We value decades of research over news cycles and Wall Street fads; perspectives from Nobel Laureates over talk show hosts. We take prudent risk management very seriously, and believe it is generally misunderstood on Wall Street.
Our asset management also includes objective, transparent investment advice—free from the serious conflicts of interest inherent to larger financial institutions. As such, clients avoid investments with sales loads and surrender penalties. We have no proprietary products, sales quotas, or public shareholder influence. Additionally, we have a fiduciary duty to always place clients’ interests ahead of our own, further differentiating us from typical banks, trust companies, and brokerage firms.
At Tackett Wealth Management, “putting the client first” is not a catchy marketing line; it’s the essence of who we are.
Fee Summary For Investment Supervisory Services
| Total Supervised Billed Assets | Annual Fee |
|---|---|
| $750,000 – $999,999 | 1.00% |
| $1,000,000 – $1,999,999 | 0.90% |
| $2,000,000 – $2,999,999 | 0.80% |
| $3,000,000 – $4,999,999 | 0.70% |
| $5,000,000 – $9,999,999 | 0.60% |
| $10,000,000 or more | 0.50% |
Fees for investment supervisory services, often referred to as advisory fees or management fees, are based on the above floating flat rate fee schedule. Examples, in accordance with the above floating flat rate fee schedule:
– A client with $900,000 in total supervised billed assets would pay an annual rate of 1.00%.
– A client with $2,100,000 in total supervised billed assets would pay an annual rate of 0.80%.
– A client with $3,000,000 in total supervised billed assets would pay an annual rate of 0.70%.
A $750,000 portfolio minimum asset level exists; however, portfolios under the minimum may be accepted at our discretion.
Portfolios below our minimum may incur a higher annual fee than described in the above table. For further details, please review our complete fee schedule found on Form ADV Part 2 or your Investment Advisory Agreement.
Fees for Financial Planning Services
Depending upon the complexity of the situation and the needs of the client, the rate for creating financial plans is between $1,000 and $10,000. The fee may be reduced for clients who hire the firm for ongoing investment supervisory services. All fees are subject to negotiation.
Negotiated Fees and Minimums
All of our fees, client minimums, and fee minimums are subject to negotiation; factors involved include whether the client is an employee or independent contractor of our company (or a family member related to same), our desire to serve clients in need of the assistance of our services who otherwise cannot afford our services, the size of the relationship, whether future additions will be undertaken to accounts upon which advice is provided, the level and type of advisory services provided and likely to be provided in the future, and the relationship between the advisor and the client. Generally, our principals and employees are not charged fees on either their accounts or those of immediate family members.
Fee-Only Compensation
We are a “fee-only” registered investment advisory firm. This means we do not accept commission or any form of compensation for the sale of securities or other investment products. Only the client pays us for the advice we provide. As such, we do not ever recommend investments that have sales loads, surrender penalties, 12b-1 fees, etc.
This fee-only compensation ultimately gives us skin in the game. If your assets increase in value, our compensation increases; if your assets decrease in value, our compensation decreases.
Rarely are firms and advisors truly fee-only like Tackett Wealth Management. Rather, most firms are “fee-based”–which confusingly means compensation can be earned by both fees and commissions. Commissions earned by advisors are, in our opinion, the source of most abuses in the investment industry, and are usually best removed from the equation. If you are seeking an advisor or money manager who has your best interest in mind and who cannot make money from the investments being recommended, we kindly recommend seeking a fee-only registered investment advisor.
Additional Fees
While we are not compensated for any investments that we purchase on behalf of the client, the client will experience additional fees by the custodian. For example, the custodian will charge transaction fees, typically between $6.95 and $20 per transaction, depending on the type of investment and the custodian. Some investments, such as mutual funds and exchange-traded funds, will have internal management fees. We estimate that these fees typically add up to less than .3% per year, which is significantly lower than industry averages. Other fees, such as account termination fees, overdraft fees, etc., may be charged by the custodian as well.
We also offer to provide advanced financial planning services as a separate fee. Advanced financial planning services are not included in the asset managemeent / investment supervisory services we provide.
For additional details regarding fees and compensation, please reference our Form ADV Part 2, Firm Brochure.