Shepherd Financial is a fee-based financial planning firm. We know how confusing this part of working with an advisor is. Our goal is to be clear and open up front so you never have to wonder if there are any fees that you don’t know about.
The fact of the matter is there are a lot of fees you see and some you don’t when working with someone in the financial services industry. Most people know what they’re paying their advisor for advice and/or to manage their money (Assets under management fee or AUM). What they often don’t know is the hidden cost of the actual investments they own. This cost is called an expense ratio and is typically higher on what is known as actively managed funds.
We feel this cost is not necessary and oftentimes adds unneeded complexity to a portfolio. For this reason and others, we primarily recommend Vanguard passive funds which have some of the lowest costs in the industry. We want you to understand fully what your fees are and how we are compensated. We urge you to ask questions if you don’t understand.
Included in the fees that our firm collects are:
- Initial and ongoing financial planning
- Access to our team as events happen in your life
- Access to and benefit of the research our firm does
- Access to our financial planning software and tools
- Design and ongoing management of your investment accounts
For most of our clients, we work under an AUM agreement with a minimum annual fee of $5,000. We bill quarterly in advance (at the beginning of each quarter). For clients with $500,000 or more in assets, we pull directly from your account. For clients under $500,000, we will send you a separate bill.
Our fee schedule is as follows:
Up to $1MM (<$1MM) – 1% annually
Next $2MM ($1MM-$3MM) – 0.85% annually
Next $2MM ($3MM-$5MM) – 0.7% annually
Next $5MM ($5MM-$10MM) – 0.55% annually
Next $10MM ($10MM-$20MM) – 0.4% annually
Above $20MM (>$20MM) – 0.25% annually
Minimum fee of $1,250 per quarter
On occasion we will work on a project basis. We charge up to $500/hr in this capacity.
We don’t expect this to happen and would hate to see you leave, but if you don’t feel like our firm is providing the value you expected, or you choose to move your money somewhere else, we will refund you a prorated amount based on the date you inform us you wish to leave.