A percentage can look relatively small until it is converted into actual dollars. Gold Coast Capital Management charges a transparent 0.50% annual advisory fee, giving investors a straightforward way to understand what they pay for ongoing investment management and financial guidance.
When evaluating a financial advisor, investors naturally focus on investment philosophy, experience, service and trust, but fees deserve the same level of attention.
Many investment advisers charge an annual fee based on assets under management, commonly referred to as an AUM fee. Because the fee is expressed as a percentage, the actual dollar cost can sometimes be easy to overlook.
At a 1.00% Annual Advisory Fee
$10,000 per yearAt Gold Coast Capital Management's 0.50% Annual Advisory Fee
$5,000 per yearA 1% advisory fee means paying approximately ↓
| Portfolio Value | 1.00% Fee | 0.50% Fee | Annual Difference |
|---|---|---|---|
| $500,000 | $5,000 | $2,500 | Annual Difference $2,500 |
| Illustrated example $1,000,000 | $10,000 | $5,000 | Annual Difference $5,000 |
| $2,000,000 | $20,000 | $10,000 | Annual Difference $10,000 |
| $3,000,000 | $30,000 | $15,000 | Annual Difference $15,000 |
These examples illustrate advisory fees only and do not include expenses associated with underlying investments or other possible account costs.
As portfolio values increase, even a difference of half a percentage point can represent a meaningful annual dollar amount. That does not mean the lowest-cost advisor is automatically the best advisor, but it does mean the cost should be clear enough to evaluate alongside the service, expertise and level of access you receive.
Advisory fees are generally ongoing expenses rather than one-time costs. Each year, advisory and investment expenses reduce the amount of capital remaining in your portfolio, and those dollars are no longer available to participate in future investment growth.
For long-term investors, the relevant question is therefore not simply, “What does my advisor charge this year?” It is also, “What am I paying over the life of this relationship, and what am I receiving in return?”
Keeping costs reasonable is one of the factors investors can control. Market returns cannot be predicted, but advisory fees can be identified, understood and compared.
“What does my advisor charge this year?”
“What am I paying over the life of this relationship, and what am I receiving in return?”
Gold Coast Capital Management charges a transparent 0.50% annual advisory fee for ongoing advisory services, with the goal of providing straightforward pricing without requiring clients to decipher a complicated fee structure.
Clients work directly with Dragan Mark Filipovic, CFA®, Founder and Chief Investment Officer, for services that may include:
There are no proprietary investment products or sales quotas driving the investment process.
For ongoing advisory services
Choosing a financial advisor based only on price would be a mistake because a lower fee does not automatically mean better advice, better investment performance or a better client experience. Instead, investors should evaluate cost and value together by asking questions such as:
Who will actually manage my investments?
How often can I speak with that person?
Is the advisor acting as a fiduciary?
How is my portfolio constructed?
Is the strategy personalized?
What services are included?
Are there proprietary products?
Does the advisor receive additional compensation from investments?
Where are my assets held?
What is the total annual cost in dollars?
Two advisers can charge different fees because they provide different levels or types of service. The important thing is understanding exactly what you are paying and being comfortable with the value you receive in return.
Your financial advisor's management fee may not be the only cost associated with an investment portfolio because the investments themselves can also have expenses.
Depending on the portfolio, investors may encounter costs such as:
Mutual fund or ETF expense ratios
Transaction-related expenses
Custodial or account charges where applicable
Other investment-specific costs
These expenses can differ substantially between portfolios, which is why investors should ask about the overall cost of the investment strategy rather than looking only at the headline advisory percentage.
At Gold Coast Capital Management, cost awareness is part of the investment-management process.
Percentages can make the scale of an expense less obvious, so before choosing or evaluating a financial advisor, it can be useful to convert the fee into actual dollars.
For example, if you have $1,500,000 under management:
A 1% annual advisory fee equals $10,000 per year for every $1 million of assets on which that fee is charged.
The actual fee may vary as portfolio values change and depending on the terms of the advisory agreement.
Whether a fee represents good value depends on the services provided, level of advice, portfolio size, advisor relationship and other circumstances.
Rather than evaluating the percentage alone, investors should convert the fee into annual dollars and compare the cost with the services they receive.
AUM stands for assets under management. An AUM fee is calculated as a percentage of the assets an investment adviser manages on behalf of the client.
Gold Coast Capital Management charges a 0.50% annual advisory fee for ongoing advisory services.
Clients should review Gold Coast Capital Management's applicable advisory agreement and regulatory disclosures for complete information regarding fees and services.
Investment products can have their own expenses separate from an advisor's management fee.
Clients should consider both advisory fees and underlying investment expenses when evaluating the overall cost of an investment strategy.
Yes. A complimentary portfolio review can include a discussion of your existing portfolio, advisory costs, investment expenses, risk, diversification and broader investment strategy.
You do not need to change financial advisors simply to request another perspective.
You should be able to understand what you are paying your financial advisor and what you receive in return. If you want another perspective on your current advisory fees, investment portfolio or overall strategy, a complimentary portfolio review can provide a useful starting point.
Speak directly with Dragan Mark Filipovic, CFA®, to better understand where you stand before deciding whether anything needs to change.
Gold Coast Capital Management, LLC is a registered investment adviser. Registration does not imply a certain level of skill or training. Advisory services are offered only to clients or prospective clients where Gold Coast Capital Management, LLC and its representatives are properly registered or exempt from registration. The fee examples above are hypothetical illustrations for educational purposes. Actual advisory fees depend on the terms of the applicable advisory agreement, asset values and other relevant circumstances. Investment products may involve expenses in addition to advisory fees. Nothing on this website should be construed as personalized investment, tax or legal advice. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results.