WHY ARE RETAINER FEES CHARGED AS A PER CENT OF ASSETS ?
A The objective is to provide a non-hourly adviser compensation method that (a) follows the notion that generally the more assets under management/ supervision/ advisement, the more effort involved and (b) has an adviser (not asset returns) performance factor built in, i.e., if well managed, the assets under advisement at the end of the year, will achieve or exceed the plan objectives. Unlike the hourly fee arrangement, this method enables you to know at the beginning of a year, what the annual management/ advisement fee will be. Additionally this frees both you and us from being obsessed with watching the clock. You will contact us more and vice-versa Though it may not be a perfect solution, it does have merit, logic and wide application among planners and advisers.
