What fees can FutureAdvisor help me reduce or avoid?
There are three types of fees to consider in a managed portfolio:
- The advisor’s fee for management (called a management or
- The expense ratio of the fund or ETF (cost of operating the
- The commission costs charged per transaction (buying and selling a fund)
We charge a management fee of 0.5% annually of the assets we manage — and there are no hidden fees, or a cancellation fee. Traditional advisors typically charge 1-1.25% for investment management. Part of our fee's value is the time we spend in trying to reduce the costs below, which might take an investor hours of research for a well-diversified portfolio.
FutureAdvisor selects only funds where the expense ratio is low relative to the industry. We use ETFs primarily because of their low cost relative to mutual funds, with an average cost of approximately 0.15%. Many mutual funds and ETFs charge 0.5%-2.0% for comparable securities.
FutureAdvisor also specifically selects ETFs that do not carry a commission cost where possible. The only funds that carry commissions in the portfolio are funds with exposure to less common asset classes where fewer options exist or if a lower expense ratio would outweigh the commission costs in your particular portfolio.
Finally, FutureAdvisor manages each client’s account with fees in mind - we will only incur a cost on a trade when the ultimate pro outweighs the cons — a philosophy we strictly adhere to.
- Are you registered with the U.S. Securities and Exchange Commission?
- What types of investment products do you support?
- I can't find any contact information -- can I speak to a human?
- Where do you get your data for employer-sponsored retirement plans?
- Why do you ask for my age and expected retirement age?
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- Why do you recommend selling a fund that has performed well in the past?
- Should I switch to Roth contributions in my 401(k)?
- Why do you recommend buying VEA in a tax-sheltered account?
- How do I determine my risk tolerance?
- Why are you recommending an ETF that has mediocre or even poor performance?
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- Does FutureAdvisor provide tax advice?
- Do you take taxes into consideration when allocating between taxable accounts and retirement accounts?
- Your choices when rolling over a 401(k) containing employer stock
- What is a Backdoor Roth? Is a Backdoor Roth IRA right for me?
- Your options for tax efficient educational savings
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- Do I need to transfer my accounts?
- Can I transfer one account type into another account type (ex: Roth to an Individual)?
- How long will it take to transfer my money during enrollment?
- Do I have to liquidate my funds in order to transfer them?
- Should I consider taxes when liquidating funds prior to transferring them?
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- How is FutureAdvisor’s management fee charged?
- What fees can FutureAdvisor help me reduce or avoid?
- Is FutureAdvisor's Premium management fee included in the retirement projections on my dashboard?
- Can FutureAdvisor's management fee be paid by credit or debit card?
- Why do I have such a high fee score on my dashboard?
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- Can FutureAdvisor place specific trades that I request in my account?
- I am holding a Mutual Fund or ETF that I really like, can I hold on to it?
- Will I be able to place my own trades in the accounts that you manage for me?
- How does the algorithm decide how and what to invest in?
- If I sign up, will you do anything other than make the recommended trades you've shown me?
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- I already have a 529 plan. Can I roll it over for FutureAdvisor to manage?
- Can I sign up for an education account if I'm already a Premium client?
- Why do you feature the New Hampshire 529 Plan if I’m not living in that state?
- What is the difference between a 529 and a Coverdell? Which does FutureAdvisor recommend?
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