PPA’s basic annual fee is 0.5%-0.75% of clients’ assets under management. Fees are billed quarterly and paid directly from the client’s Schwab Institutional (SI) accounts. This fee is PPA’s only compensation for its services to clients. PPA has no asset minimums, but may charge a minimum annual fee of $2,000.
There is a maximum $18 transaction cost associated with any purchases or sales of securities in SI accounts. PPA’s long-term investing approach is designed to minimize overall transaction costs based on the infrequent turnover of the investments we recommend for our clients.
The index funds we use to implement client portfolios have their own expenses, which typically range from .05-.15% annually. These expenses are lower than those for most other types of funds.