Clarity and Alignment: Understanding 25 Financial's Fee-Only Advisory Schedule
At 25 Financial, our commitment is to provide transparent, unbiased advice that always puts your financial interests first. This dedication is defined by our Fee-Only compensation model, ensuring the firm’s recommendations are never influenced by commissions or third-party incentives.
This article summarizes our competitive fee schedule, as fully detailed in our Form ADV Part 2A Disclosure Brochure.
Why 25 Financial is a Fee-Only Firm (Fiduciary Standard)
The term Fee-Only is a designation indicating that 25 Financial is compensated solely through advisory fees, and never receives commissions from the sale of investment products. This model is foundational to our role as a Registered Investment Advisor (RIA), legally bound to the Fiduciary Standard.
- No Commissions: 25 Financial does not earn commissions from selling specific investment products, mutual funds, insurance, or annuities.
- Unbiased Advice: This structure eliminates inherent conflicts of interest. We ensure complete transparency by clearly outlining any potential conflicts for clients to review, removing all ambiguity from their decision-making process.
Asset Management: Fee-Only, Assets Under Management (AUM) Structure
Our core service is discretionary asset management. For this service, 25 Financial’s annual investment advisory fee is a percentage of the total assets the firm manages for the client. This is a common and transparent fee-only method known as Assets Under Management (AUM).
25 Financial utilizes a tiered, or “blended,” fee structure, which means the percentage charged decreases as the value of the assets under management increases.
Assets Under Management | Annual Fee | Monthly Fee |
Up to $250,000 | 1.50% | 0.125% |
$250,001 to $500,000 | 1.25% | 0.104% |
$500,001 to $2,000,000 | 1.00% | 0.083% |
Over $2,000,000 | 0.90% | 0.075% |
Note: For complex holdings like alternative investments, the annual fee may be charged at up to 2.00%, as agreed upon in writing. All fees are negotiable.
Key Billing Details:
- Billing Frequency: Fees are billed monthly in arrears.
- Calculation: Fees are calculated based on the average daily balance of the account for the preceding month.
- Negotiability: The annual fees are negotiable based on factors such as the dollar amount of assets, the historical client relationship, and the type of assets involved.
Financial Planning: Fixed Fee for Ongoing Services
For our ongoing, comprehensive financial planning services, 25 Financial charges a fixed fee (a type of fee-only compensation) that reflects the complexity and scope of the work required for the client’s unique financial situation.
- Service Fee: Financial planning is offered on a fixed fee basis ranging between $2,000 and $5,000.
- Implementation Waiver: 25 Financial reserves the right to waive the financial planning fee if the client elects to implement the plan through the firm.
Understanding Other Costs
25 Financial’s clients may incur the following costs, which are separate from the core Asset Management and Financial Planning fees:
External Costs
As a fee-only firm, 25 Financial must clarify that certain costs are separate from the advisory fees paid to the firm:
- Custodial Fees: Clients pay their custodian (the firm that holds their assets) for custody services. 25 Financial does not receive any portion of these fees.
- Transaction Fees: Custodians may charge fees on the purchases and sales of securities. 25 Financial does not receive any portion of these fees.
- Internal Fund Expenses (Expense Ratios): Mutual funds and Exchange-Traded Funds (ETFs) charge internal operating expenses, which are disclosed in the fund’s prospectus. 25 Financial does not receive any portion of these fees.
Technology Fees (Paid to 25 Financial)
These fees cover costs associated with technology, data aggregation, and consolidated reporting:
- For each full-service account: $40/year.
- For each held-away account managed with ByAll: $80/year.
- For each held-away account managed with 3rd Party Providers:30%/year, billed monthly on average account value.
- For each Alternative asset master account: $40/year.
- For all Alternative assets consolidated through 3rd Party Providers: 0.048% of managed alternative value (ex: a $100,000 investment is billable at $4/month).
For the most comprehensive information, please refer to 25 Financial’s full Form ADV Part 2A Disclosure Brochure.
The content above is for informational purposes only and is not individualized investment advice. Please consult with a professional financial advisor and perform your own analysis before making any decisions. It is very important to do your own analysis before making any investment based on your own personal circumstances.
Securities offered through Great Point Capital, LLC; member FINRA/SIPC/IEX. Advisory services are offered through 25 Financial, a Securities and Exchange Commission Registered Investment Advisor. Great Point Capital, LLC and 25 Financial are separately owned and unaffiliated entities.
