Investors like to know what fees they will paying when working with us.
So we decided to explain your options.
If we decided to mutually work together, we charge a flat 1.5% up to $500,000 and 1.0% above that amount for managing your investments. We don’t charge commissions.
If you wanted our 3-part comprehensive retirement plan, (contact us for more details), we charge a one-time fee of $2,500 which would retain our services for a full year.
If you wanted our 3-part comprehensive retirement plan, but decided you wanted us to manage your investments, then we would waive the $2,500 and move your investments to our custodian and charge the management fee.
Fee-for-Service: Various fee-for-service payment structures include hourly fees, project-based fees, flat fees, one-time fee and subscription fees. This model allows individuals and business owners to pay for their financial advice who have assets tied up in a business, real estate, 401(k), or other illiquid investments.
“CrossPoint Wealth Prides Itself on Being Completely Transparent About Client Fees and Offering Investments That Reflect Client Values.”
– Scott Krase
We encourage the deep dives into the financial industry and our Firm. As an SEC Registered Investment Adviser (RIA) we take on a Fiduciary role with our clients and it is extremely important that we make sure that our clients have a full understanding of how we manage assets, the fees associated, and how we differ from Brokerage Firms.
Answers to FAQs
1) I am not a solo operator. My LLC, CrossPoint Wealth is affiliated with RCM Wealth Advisors. RCM provides all of my back-office operations, compliance, and I have access to their Portfolio Management Teams. Many of the firms associated with RCM decide to Brand their corporations to what suits them and the area with which they operate (CrossPoint Wealth). It is a more specialized, nuanced approach that affords Advisors the independence and creativity to build their message to suit their business and the needs of their clients.
2) Team of Managers and employees – I am the President of CrossPoint Wealth and the employees of RCM work for my company. CrossPoint pays for their services. Again, it is part of RCM but is able to operate independently as it sees fit.
3) We are a fee only SEC Registered Investment Adviser. Our fees are based on a percentage of the assets that we manage. We do not charge any performance fee. The only way that we get a raise is if we continue to grow the account balance. How this differs from a traditional Brokerage firm is that they would sell you a product and collect a commission. Maybe sometime down the line they sell you another product and collect another commission.
4) Our Portfolio Managers are compensated through our managed program fees. With our clients there is Advisor fee and an Asset Management Fee. When you blend the two together you get the total fee. (Ex. .60% Advisor Fee + .45% Asset Management Fee for a total = 1.05% Blended Fee) The Portfolio Managers are compensated from the .45%.
I hope this helped shed some more light on how the Financial Industry is constructed and gave you some more insight as to how a relationship with us could work. I think the next step in the process is probably to look further under the hood and start getting a look at how we elect investment candidates for your portfolio. I think it makes sense to schedule a conference call with our Investment Policy Committee and we can all walk you through the process. Once you have had the chance to see our process, I think you will gain deeper insight as to how everything comes together at the investment level.
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