Are You Paying Too Much for Investment Management?
If you don’t need a lot of planning or advice with your personal finances, we are proud to introduce our new low-cost VCM Investment Management service. It is designed to match the low cost of popular online services, while maintaining the customization and flexibility that your unique situation demands. Our Investment Management fees range from 0.2% to 0.5%, based on the size of the portfolio. We do not charge load fees (commissions) on any investments, nor do we receive compensation from outside sources.
VCM Investment Management Fee Schedule
|Assets Under Management||Annual Fee (%)|
|$0 to $500,000||0.50%|
|$500,001 to $2,000,000||0.40%|
|$2,000,001 to $5,000,000||0.30%|
|$5,000,001 to $10,000,000||0.25%|
|$10,000,001 & Above||0.20%|
*There is generally a $500 minimum fee for each portfolio. VCM may choose to reduce or waive this fee based on the scope and complexity of the portfolio.
Everything about you is unique, from your resources and skills to your risk tolerance, goals, and needs. Why should your investment portfolio be like everyone else’s? At VCM, we will custom build your portfolio around the best investment, YOU!
The Investment Policy Statement (IPS) is a document that defines the investment goals and objectives. It outlines the strategies that will be used to meet these objectives. The IPS also contains specific information on asset allocation, risk tolerance, liquidity requirements, and other policies that are designed to increase the probability of achieving the investment objectives.
Investors who do not have written investment policies often base decisions on day-to-day events, rather than maintaining focus on the long-term nature of the investment process. Even if you are managing your own investments, VCM recommends that you form a written Investment Policy Statement. The IPS can greatly enhance the likelihood that you will achieve your goals.
Rebalancing must be done with every investment portfolio. Rebalancing among assets classes (e.g. stocks & bonds), allows the investor to properly manage the risk of the portfolio in order to stay in line with the risk tolerance of the investor.
In addition to rebalancing among general asset classes like stocks and bonds, rebalancing among sub-asset classes (e.g. U.S. Small Value, International Small Value, Emerging Markets, etc…) can also have the benefit of increasing returns as it serves as an effective way to regularly “buy low and sell high”.
Not every asset goes up year in and year out. With investing comes some sort of volatility. After all, it is that volatility that allows us to realize the great long-term returns in the first place. Tax loss harvesting is the practice of selling an investment that has currently experienced a loss. The investment is then replaced with a similar, yet not “substantially identical” investment, allowing the desired asset allocation to stay on target.
By “harvesting”, investors are able to use the loss to offset other capital gains and income. When performed regularly, investors are able to realize significant tax-savings over time and increase the after-tax return of the portfolio.
VCM provides you with Quarterly Performance Reports on your portfolio, along with market insight.
Your adviser will meet with you for a free annual reviews (face-to-face or web-based).
Regularly reviewing the beneficiaries on your retirement accounts is an important part of your investment portfolio. Performing this task not only ensures your loved ones are provided for, this process can also help to minimize taxes on the wealth you pass on to your loved ones.
We understand that you may have questions regarding your portfolio, we are happy to provide you with quality support throughout the year.
VCM maximizes the after-tax returns by prioritizing the placement of assets in tax-free, tax-deferred, or taxable accounts according to their tax-efficiency and your tax circumstances. With this option, VCM also offers advanced tax-loss harvesting in which we coordinate harvesting losses in your taxable account with all other accounts (such as tax-free accounts) to further maximize tax-efficiency.
The fee for Asset Location services is $150/year per account. VCM may temporarily wave or reduce the fee depending on the complexity of the portfolio.
VCM will monitor your 401(k) and rebalance the accounts managed by VCM in line with your 401(k) or other investments accounts not managed by VCM. This allows you to maintain the desired allocations among all our investments. Since most 401(k) plans have limited investment options, VCM’s 401(k) Integration service allows an investor to maximize allocations in the 401(k) for the best available funds within the plan.
As a common example, an investors 401(k) account may have a few very good fund options (such as: U.S. Large Cap, U.S. Small Cap, International Small Cap, and Bonds). The 401(k) may not offer other asset classes or maybe the funds offered have high expenses. Based on the investors overall asset allocation, VCM would then emphasize the other sub-asset classes that should be targeted (such as: U.S. Large Value, U.S. Small Value, International Small Value, Emerging Markets, Emerging Markets Small, and others). This allows the investor to achieve the desired asset allocation with all investments, resulting in more efficient long-term performance.
VCM charges $500/year per 401(k) plan for 401(k) Integration. For clients who do not need ongoing integration, VCM offers advice-only services as a one-time fee.
How does the Process Work?
- Introductory Meeting: Face to face, web-based, or over-the-phone meeting to understand your current situation, your goals, needs, and risk tolerance. Once you decide to use VCM’s investment management services, we will get the process started by signing applicable agreements and establishing your accounts.
- Portfolio Design & Investment Policy Statement: The next step is to design the portfolio based on your unique goals & needs. We will then deliver your custom Investment Policy Statement.
- Implementation: Fund your accounts, transfer other assets, and begin implementing your new and improved investment strategy.
- Review: VCM will monitor your account and re-balance on an on-going basis. We will provide complimentary annual reviews via face-to-face or web-based.
- Ongoing Support: VCM will be here to answer your questions throughout the year.
Schedule a Free Consultation or Fee Analysis
Fill out the information below to see if VCM’s Investment Management Services is right for you. We will also be more than happy to provide you with a complimentary fee analysis of your current accounts to see if you’re paying too much in fees.