Keeping our Client's Costs Down while also Investing in the Business

Hello Everyone – As you all know by now, inflation has caused price increases on so many goods and services.  But the good news is this…….not so much here! Our fee rates have stayed the same for years, and the total cost to do business here can decline in two ways.

First, we regularly seek new ways to reduce our client’s investment costs where possible.  For instance, we recently made a decision to start using more ETFs (Exchange Traded Funds) in place of mutual funds.  Especially in the Non-IRA accounts. ETFs tend to be about .35% less expensive than mutual funds, they are less taxing, and they are more sensitive to stock price changes.  All of this means ETFs can actually enhance the investors return over time.

Second, when our clients add fresh money, transfer in outside accts, and experience market growth when stock prices rise, the total amount of investments they have here tends to rise.  This too can mean lower costs, because as their balances grow, they can hit more and more of our quantity discount levels which in turn reduces the advisory fee rate we apply to their accounts. See a link to our fee schedule here. https://www.michaeltraxler.com/Our-Fees.2.htm

Bottom line is this.  We think it’s important that our clients get a good fair deal.  Our standard fee rate is intentionally set lower than the industry averages, and the quantity discounts give investors a way to reduce their costs as their total balances grow.

Our client base continues to grow.  Therefore we are investing in new technology like our recent addition of the Redtail CRM Software, the Black Diamond Performance Reporting Software, and now we are looking at investing in a new financial planning software package that will integrate with client accounts and help us model things like figuring out when to retire, optimizing social security, tax reduction ideas, estate planning ideas, and you name it. 

All in, we continue to invest in our business and we are excited about the future as we firmly believe things will get better in due time.

Thank you so much for the trust you have placed in us, as well as your patience as we wait out this bear market together!

Best Regards, 

Mike