Services and Fees

Fee-Only Compensation

Purpose Wealth is 100% fee-only. Portfolio Management and Financial Planning fees are our only sources of revenue.

Portfolio Management Fee

Our Portfolio Management fee is 0.25% of assets under management (AUM) per year, subject to a $250 quarterly minimum or $1,500 quarterly maximum flat fee per household. Our maximum fee is below the minimum fee of many advisors. Why?

The impact of fees on portfolio performance is tremendous. Consider the impact of our Portfolio Management fee vs. an advisor charging 1% of AUM each year on a $1 million portfolio earning a gross return of 7% annually for 30 years. All else equal, the 1% fee subtracts nearly $1.5 million more than our fee by year 30!

Fee Graph

Minimum and Maximum Flat Fee Examples:

  • $100,000 AUM = $1,000 minimum flat fee
  • $400,000 AUM = $1,000 minimum flat fee
  • $1,000,000 AUM = $2,500 based on 0.25%
  • $2,400,000 AUM = $6,000 maximum flat fee
  • $20,000,000 AUM = $6,000 maximum flat fee

Financial Planning Fee

Financial Planning is distinct from Portfolio Management and we do not require Portfolio Management clients to utilize this service. Our Financial Planning fee is $1,800 per year.

Fund Expenses

Client accounts hold mutual funds and/or exchange-traded funds which have expenses (expressed as the expense ratio) not related to our management fee.

We recommend passive and index funds to keep expense ratios very low. Total costs may be further reduced by tax management and/or securities lending by the funds. Purpose Wealth is not compensated by fund companies for recommending their products.

Trading Costs

Fidelity Institutional, Charles Schwab Institutional, and TD Ameritrade Institutional are the primary custodians for client accounts. Each custodian may charge transaction fees for buying and selling securities, typically $25 per trade on mutual funds (with a range of $0 to $50) and $7.95 per trade (with a range of $0 to $12.95) on exchange traded funds or individual stocks.

Purpose Wealth is not compensated by transaction fees. Our goal is to trade only when necessary to maintain portfolio structure and keep transaction fees to a minimum. Because we typically design portfolios comprised of fewer funds than traditional allocations, our portfolios tend to be less costly to own over time with respect to transaction fees and taxes.