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Or both 😂

What is SUNDRY allowance in Accenture?
Anybody else working in the energy industry?
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How do they even compete with such extortionate fees? Doesn't everyone just no fee platforms these days?
No I work for JPM, $500k is a 1.15% management fee, not including internal expenses like SMA’s or managed account expense ratios. They can try to negotiate the fee, I don’t allow it, but some of my colleagues do.
In an IRA, if you use JPM funds, you receive a refund for the expense ratios and internal management fees.
But nobody is charging 0.45%, unless you are a part of the private bank, maybe. That’s a $10M net worth minimum…
Why do you need them to actively manage it for you? Why not Vanguard and chill?
Rising Star
Not me, for a client that moved there with her husband
For SMAs? .45 sounds right.
Rising Star
Really? Ughhh
How much of this is negotiable / in your control? (Just curious from an outsiders perspective)
That's insane
Rising Star
I keep thinking no way!
Is your client ultra conservative? I work at JPM and we charge 0.70% on bond ladders. On $500k+ advisors tend to discount the fee down to 0.50% so that’s maybe what he’s talking about…
Rising Star
How does advisor get paid?
35% revenue share, so if the client pays 0.50% the advisor gets 0.175%
Rising Star
It dies nit make sense. I’m going down to .95% but those are accounts over 1mm
The race to zero is on.
Rising Star
Good grief. How are we to make money?
Just to to clarify. The 0.50% is a discounted fee on a muni/treasury/corporate bond ladder. Far from a core portfolio and designed as a satellite allocation.
Then probably 1.00% - 1.15% at $500k.
SMA can go .4 if passive strategy or .62 for active strategy
Was the .45 for internal expenses only and then an advisor/management fee on top? Seems very low for an advisory account of that size. If I were you I’d check their statements and look at the total fees charged over a year, do the math.
Rising Star
When I was at JPMS there is no way I’d charge that low for a $500k account.