- Fixed Fee Pricing
- Financial Planning
- Employer Plans
- About Clarity
- Fiduciary Advisors
Our Fixed Fee Pricing is Simple and Straightforward
Our primary focus is giving our clients the best chance for investment success and the ability to enjoy their desired lifestyle in retirement.
We accomplish this through flat-fee pricing.
Financial advisors have been charging their clients a percentage (e.g., 1%) of the total assets they manage since the early 1990s. These fees are commonly referred to as "wrap fees", asset-based percentage fees, or assets under management "AUM" fees. Over the last decade, financial technology has drastically reduced the costs for advisors to provide wealth management services to their clients.
At Clarity, we have passed the savings directly to our clients in the form of low, flat advisory fees. We are committed to keeping our advisory fees and investment costs to a minimum, so our clients can increase their investment returns and have a better opportunity of achieving their financial goals. This is what real fiduciary advisors do.
Since AUM advisory fees are normally deducted directly from investment accounts, many investors are unaware of the actual dollar amount they are paying to their advisor.
Asset-based (AUM) percentage (e.g., 1%) fees = ZERO fee transparency for investors
We save our clients thousands of dollars in advisory fees every year!
Where does your current advisor's annual fee rank on this chart? If you don't know, you owe it to yourself to find out.
The annual asset-based fees used in the chart and calculations below are from the AdvisoryHQ study, "Average Financial Advisor Fees and Costs 2018 Report."
Why Fixed, Flat Advisory Fees Make Sense
The 1% advisory fee might seem trivial, but have you ever stopped to think about what 1% is in terms of dollars? Over time, high fees and costly investments cause people to work longer and can rob retirees of a significant portion of their retirement income every year.
Financial advisors do not control market movements up or down, nor can they predict them. So why should their compensation be based on an increase or decrease in your accounts due to market movements, as it is with an asset-based percentage fee? Well, it shouldn't. In fairness, it should be noted that asset-based fees decrease in a market downturn, but why should advisors receive a pay cut, especially during the time period when they are working their hardest to convince their clients to stay the course?
The Flat-Fee Advantage
At Clarity Capital Advisors, we believe investors should pay financial advisors a fair, flat fee based on their education, professional designations (e.g., Certified Financial Planner CFP® and Chartered Financial Analyst CFA®), financial experience, and the services they provide such as financial planning (e.g., retirement planning, investment planning, income strategies, etc.) and investment management. In addition, the fee-only, flat-fee form of compensation provides Total Fee Transparency and is aligned with the Fiduciary Standard for financial advisors.
Are you paying an asset-based (AUM) percentage fee (e.g., 1%)? We can help.
An AUM Percentage Fee and Your Retirement: Are you willing to pay an advisor 25% of your retirement income?
Reminder: An advisor's fee is in addition to (not included in) your retirement income calculations.
- Example: You have accumulated $1 million in retirement assets, a 4% withdrawal rate would be $40,000 per year and the advisor's 1% fee would be an additional $10,000 per year or 25% of your income.
- Now let's assume that you have $2.5 million for retirement and you are withdrawing 4%. That's $100,000 per year and your advisor's 0.88% fee is an additional $22,000 per year. This would equate to 22% of your retirement income.
- At $5 million in retirement assets your 4% withdrawal would be $200,000 and your advisor's 0.84% fee is an additional $42,000 or 21% of your income.
(The annual asset-based fees used in the calculations are from the AdvisoryHQ study, "Average Financial Advisor Fees and Costs 2018 Report.")
Flat Fees = Total Fee Transparency
A Simple and Transparent Fee Schedule
The advisory fees below include ongoing investment management and financial planning services for one flat fee.
Our flat fee stays fixed as your assets grow. Example: You begin with $1 million in assets and those assets grow to $1.5 million.
Your fee is still the flat $5,000 per year, not $6,000.
Fees cover all accounts within a client's household. There are no account set up fees.
The advisory fee is billed directly to your investment account(s) as a flat quarterly fee in arrears.
The flat annual fee represents the total advisory fee for one year.
Wealth Management advisory fees are capped at $20,000 per year.
No Asset Minimums. Minimum annual fee is $2,500.
Please call 800-345-4635 to get started.
How are we able to charge such low fees compared to other firms?
We've cut out the middleman.
Our fees are based on our firm's costs and reasonable compensation for a credentialed financial professional to provide you with investment management and financial planning services. As an independent, fee-only, registered investment adviser (RIA) firm, we are able to negotiate our software costs and other relevant fees directly with our providers, thus reducing our firm's overhead. Unlike other advisors who are employed by financial firms (i.e., banks, brokerage firms, other RIA firms, insurance companies), we do not give a portion of our income to an employer or another firm (the middleman).
This is how it works.
Let's assume you have $1 million invested with a firm that is charging you 1% per year. Your fee is $10,000 annually. By the way, this dollar amount will increase over time as your assets grow. When the fee is deducted from your accounts, the middleman firm (your advisor's employer) may take anywhere between 60 - 80% of the $10,000 fee and leave your advisor with a fraction of the fee as compensation. The amount your advisor receives is called a "payout" and it's normally a percentage of the fee the firm collects. The $6,000 - $8,000 of your money will go towards the firm's advertising, providing your advisor with a posh office in a nice location, company parties, etc. If you are working with a "fee-based advisor" (a fee and sales commission advisor) at one of the larger firms, an insurance company, or a bank investment program, plan on being sold investments with a sales commission and some hidden 12b-1 fees on top of the 1%. That's if the additional sales commissions and fees are even disclosed to you.
As an independent firm, we have 100% control over our operating costs compared to financial advisors who are employees of other firms. By keeping our costs low for advertising and office space, and placing our capital in areas that make us more efficient, we are able to pass the savings along to you. Ask us about our complimentary fee and risk analysis.
FACT: High advisor fees counteract the use of low-cost investments
We see financial advisors touting low-cost mutual funds or a low-cost investment strategy while charging their clients 1% or a tiered percentage asset-based fee. This defeats the purpose of a low-cost investment strategy. With historically high market valuations and very low interest rates contributing to lower future investment returns, wise investors do all they can to control investing costs. One of the easiest ways to do this is to avoid using a financial advisor who charges you an annual advisory fee based on a percentage of the assets you place with them to manage. The good news is that you now have a viable alternative to high-cost advisors that requires no sacrifice in the level of service received, Clarity Capital Advisors.
Q: We are currently with another advisor and pay much more than your stated fees. How can we work with Clarity Capital Advisors to reduce our fees?
A: We work with clients nationwide. Please give us a call or send us an email to get started. 800-345-4635 or firstname.lastname@example.org
Many financial advisors require their new clients to liquidate their existing investments to move into the advisor's recommended investments and asset allocation. We recognize that while this may be convenient for the advisor, it may be expensive from a tax standpoint for investors with significant embedded capital gains. Assuming your investments align with your financial goals, ask us how we can manage and monitor your existing investment accounts at a reasonable cost and incorporate our financial planning services.
Your investment accounts will be held with our custodian TD Ameritrade Institutional (TDAI). TD Ameritrade Institutional does not charge any annual account maintenance fees. If your accounts are currently held with TDAI you will simply sign one Advisor Authorization form for each account you would like us to manage. The Advisor Authorization form limits our access to your accounts. We are limited to the purchase and sale of securities and the authorization to debit our fees from your designated account(s).
If your accounts are not held with TDAI, we will provide you with new account documents to make the transition as easy as possible. To facilitate the transfer we will need a copy of your most recent statement from your current advisor. Please be advised that your accounts will transfer with the investments you currently hold so you do not have to worry about being out of the market during this process. The transfer time from most firms to TDAI is ten business days. Your advisor's firm may charge a small one-time transfer fee per account.