Portfolio Management

In our Portfolio Management service, based on the allocation you choose in your Integrated Financial Plan, we purchase the securities required to put your target asset allocation into practice, and periodically report the performance of your portfolio and rebalance to your target allocation.

We manage your assets according to your Investment Policy Statement, a formal document that records your choice of target return and risk, and identifies other factors we should take into account as we select investments for you. If we have done an integrated financial plan for you, the Investment Policy Statement is a direct result of that work. If we haven’t, we usually have an asset allocation consultation to review your investment objectives and issues, and to help you select a target portfolio.

What does managing my investments consist of?

For Sensible Financial®, managing investments means:

Navigating the Risk Return Maze

Helping you decide how much future spending power to seek and how much risk to take by providing a clear statement of the risk-return trade-off.

Recommending Passive Mutual Funds

Recommending diversified, low cost investments to accomplish your spending power objective at the lowest possible risk 

Making the Transition

Doing the work to put the investment program into place: opening accounts, transferring assets, purchasing investments.

Reporting & Rebalancing

Reporting on your Portfolio’s Performance and Recommending investment purchases and sales to restore your portfolio to your desired risk level and target return (rebalancing).

Minimum Asset Level

We have generally found that clients with investable assets of $500,000 or more are most likely to be able to benefit from the services that we offer. However, we can work effectively and efficiently with clients who anticipate having assets at that level in just a few years, even though they may not yet have investable assets at that level.

What will this cost me?

Portfolio Management Fee Calculator

Investment Portfolio Value ($):
Sensible Financial Annual Fee ($):
Sensible Financial Annual Fee (%):

Annual Portfolio Management fees begin at 1.1% of assets for portfolios of $500,000 or less.

Portfolio Management Fee Structure

AssetsQuarterlyAnnual Total
Under $500,000Varies1.1% of assets

Assets

For Each

Additional Fee

FromToAdditionalQuarterlyPer Year
$500,000$4,000,000$250,000$225$900
$4,000,000Above$1,000,000$300$1,200

Annual Portfolio Management fees begin at 1.1% of assets for portfolios of $500,000 or less.

One-Time Establishment Fee

We charge a one-time account establishment fee at the beginning of a portfolio management relationship to cover our costs of establishing your accounts at our custodians and on our information systems.

• More accounts to establish
• More accounts to report and rebalance
• More accounts to transfer
• More securities (stocks and mutual funds) to sell
• Dollar cost averaging transactions (if you wish to phase in your investment) The fee can exceed $1500 in cases of unusual complexity (e.g., with many accounts, or many securities)

The fee can exceed $1500 in cases of unusual complexity (e.g., with many accounts, or many securities)

Portfolio Management Fee Structure (Detailed)

Account valueAnnual CostBPS*
$500,000$5,500110
750,0006,40085
1,000,0007,30073
1,250,0008,20066
1,500,0009,10061
1,750,00010,00057
2,000,00010,90055
2,500,00012,70051
3,000,00014,50048
3,500,00016,30047
4,000,00018,10045
5,000,00019,30039
6,000,00020,50034
*BPS are basis points. 1 basis point is 1 hundredth of a percent - .01%. 100 basis points is one percent.

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Disclaimer

This content reflects the opinions of Sensible Financial®. We may change it at any time without notice. We provide this content for informational purposes only. Although we endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability for a particular purpose or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. We do not intend the information contained in this website as investment advice and we do not recommend that you buy or sell any security. We do not guarantee that our statements, opinions or forecasts will prove to be correct. Past performance does not guarantee future results. You cannot invest directly in any index. If you attempt to mimic the performance of an index, you will incur fees and expenses which will reduce returns. All investing involves risk. You can lose any money you invest. There is no guarantee that any investment plan or strategy will succeed.

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