Our Fees

At Riverfront Asset Management we offer one of the most competitive fee structures in the industry and was designed with our clients in mind. Understanding the way your financial advisor is compensated is an important way to understand the actions that they are incentivized to do.

The financial industry is essentially split into two categories, fee-based and commission based. A commission based, broker or financial advisor, are paid to sell plain and simple. This category of financial professional receives compensation whether their clients make money or loss money as they get paid every time a trade happens regardless of gain, loss, or client rate or return. If this sounds like the arrangment that you currently have maybe you should consider the next category. If you are unsure I urge you to call your broker or advisor and ask them how they are compensated.

The second category of compensation is fee-based management. Most Registered Investment Advisors charge a management fee based on a client's assets under management. The ideology behind this is to change the incentives of the financial advisor. Fee-based financial advisors are better aligned with their clients because they both benefit from increasing account values. We continuously monitor our client's holdings and adjust portfolios accordingly. When dealing with commissioned based advisors or brokers they usually get paid between 2-5% for each trade they reallocate. These commissions can add up very quickly and significantly impair long-term financial goals. At Riverfront Asset Management we only conduct fee-based business and our annual fees can be found in the table below. These fees are charged to accounts on a quarterly basis, for example an annual fee of 1.25% is billed .3125% per quarter. We have three different billing cycles which are based on the month that you funded your account; any account funded mid-month will be prorated accordingly on their first invoice. Financial advisors have a fiduciary responsibility to their clients and at Riverfront Asset Management we hold this duty top on our list. Our client's holdings and interests always come before our firm and our advisors personal accounts.

At Riverfront Asset Management we have taken fee-based management one step further. Our accredited clients can choose to have their investment advisor compensated based on how well he performs compared to an agreeed upon benchmark. This is called Performance based management but unfortunately due to current regulatory restrictions we are only able to offer this fee structure to clients with more than $750,000 in assets under our management and a net worth over $1 million excluding their primary residence. This is the most ideal scenario because the advisor only gets paid if he beats an agreed upon benchmark.

We offer two fee-based account options for our Asset Management clients which are Portfolio Management and Performance Based Management.

Financial Planning Fees Depending upon the complexity of the situation and the needs of the client, the rate for creating client financial plans is between $150 and $5,000. We provide an estimated fee for financial planning services after a discussion about their financial situation and planning requirements. Fees are paid in arrears upon completion. Because fees are charged in arrears, no refund is necessary. The fees are negotiable and the final fee schedule will be attached as Exhibit II of the Financial Planning Agreement. Clients may terminate their contracts without penalty within five business days of signing the Financial Planning contract.

Hourly fees are billed at the rate of $75 dollars. All clients or prospective clients will be made aware of charges before ever being charged. All clients or prospective clients have the right to decline any service that will resort in additional fees. For those investors who enjoy managing their own assets we offer professional portfolio reviews and recommendations for our hourly rate with a 1-hour minimum.