Fees That Make Sense

Price is what you pay, Value is what you get.
-Warren Buffet

The Armis Financial fee schedule below not only includes our Portfolio Management service but also our comprehensive financial planning and retirement planning services as well.

Investment Amount Net Advisory Fee
$0 - $1,000,000 1.00%
$1,000,001 - $5,000,000 0.75%
$5,000,001 - $10,000,000 .50%
$10,000,001+ 0.25%

Fee-Only (When Winning) Calculation

There will be an initial fee at the end of the first month that is calculated by taking the end balance of assets managed and multiplied by the Net Advisory Fee mentioned in the table above. Then we will divide it by the total number of working days in the year, and multiply it by the total number of working days in the month. For example:

January ending balance of $1,000,000

$1,000,000 x 1.00% = $10,000

$10,000 / 261 (number of working days in 2018) = $38.31

$38.31 x 23 (number of working days in January) = $881.13

January Net Advisory Fee = $881.13

However, after the initial month, we will not charge a monthly Net Advisory Fee if your month ending balance in the subsequent month is less than the month ending balance of the previous month. For example:

February ending balance of $1,010,000

$1,010,000 x 1.00% = $10,100

$10,100 / 261 (number of working days in 2018) = $38.69

$38.69 x 20 (number of working days in February) = $773.80

February Net Advisory Fee = $773.80

Lets say next months ending balance is less than the previous month:

March ending balance of $1,009,999

March Net Advisory Fee = $0.00

Over the long-term, fees can really hinder your returns. Why should clients pay a monthly fee if your investments are down? That will only pile on to you to your losses and it will take longer to recover from those losses. At Armis Financial, we know that corrections happen and even recessions. Next time there is 10% correction, it can take 11% to break even with an on-going monthly fee. That is why we believe it is proper to alleviate your load, not pile on.

Fee-Only vs Fee-Based: What's the Difference?

Compensation Type: Fee-Only Fee-Based
Registered Investment Advisor
Less Conflict of Interest
Paid Only by Client
Client Comes First

Fee-only financial planners are registered investment advisors with a fiduciary responsibility to act in their clients' best interest. They do not accept any fees or compensation based on product sales. Fee-only advisors are only paid by the client for advice. Fee-only Advisors may have as much if not more investment options or products to offer but without a different commission price tag attached to it. Hence why they have fewer inherent conflicts of interest, and they generally provide more comprehensive advice.

Commission-based agents and brokers often take offense at this distinction. Blurring the difference, they created the category dubbed "fee-based," which means they charge a fee in addition to collecting commissions. Study after study shows that even consumers seeking a strictly fee-only advisor find these terms confusing.

Where Fee-Based can be confusing and potentially misleading is that not only does an advisor receive fees, but they can also accept commissions from financial products recommended such as load based mutual funds, or annuities and insurance. This system creates the potential for a considerable conflict of interest. If an advisor, has the opportunity to recommend a particular financial product that pays him/her a commission versus a financial product that does not pay a commission, do you think they could be incentivized and influenced to recommend the commissioned based product? Or, what if their product inventory only allows the choice between a select group of commissioned products based on the affiliation of their broker-dealer? Would this raise a question – are the financial products offered to me best for my financial situation, and, do they make use of the best potential options considering the whole universe of financial products available?

111 Congress Ave Suite 400, Austin, TX 78701

(512) 709-9741