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Our portfolio backtest shows the value of our Managed service. If you started with $100,000 here's how we would have done:
- Traditional Financial Advisor
- Risk Tolerance
Back tested returns are hypothetical and do not reflect actual investment results.
They do not represent the investment performance or the actual accounts of any investors, and this performance pre-dates the inception of the FutureAdvisor firm. The performance results were derived from the retroactive application of a model developed with the benefit of hindsight and not with real money at stake. No representation is being made that any account will or is likely to achieve results similar to those shown. Actual results may differ significantly from the hypothetical returns being presented. Past performance is not indicative of future results. Differences in account size, age of clients, risk tolerance, timing of transactions and market conditions prevailing at the time of investment may lead to different results.
The back tested performance reflects the simulated performance of a hypothetical model portfolio of Vanguard ETFs. Each representative ETF was selected based on its asset class exposure, risk tolerance, expense ratio and duration. The securities in these hypothetical portfolios were selected with the full benefit of hindsight, after their performance over the period shown was known. It is not likely that similar results could be achieved in the future.. The results shown are net of the FutureAdvisor management fee of .5% and do not include transaction costs.
These results are then compared with the performance of a “traditional financial advisor,” which is represented by the performance of a peer group of investment managers with similar risk tolerance and investment duration using the ARC Private Client Index for the Balanced Equity risk-profile. This comparison is provided only for informational purposes. There can be no assurance that the performance of the ARC Private Client Index during the relevant time period would have been representative of the performance of a traditional investment adviser implementing an investment strategy similar to that of FutureAdvisor. As a result, this may not be a meaningful comparison and should not be relied on in making an investment decision.
Frequently Asked Questions
What is the total cost of investment management with FutureAdvisor?
The total cost of FutureAdvisor Premium is comprised of three parts: our management fee, the expense ratios of the funds in which you’re invested, and trading commissions (i.e. the $7.95 you pay to execute a trade at Fidelity). Over 90% of the funds we use at FutureAdvisor are commission-free.
FutureAdvisor’s management fee is 0.5% annually -- half of one percent -- on assets that we directly manage. Average expense ratios and trading fees are minimized, and result in an all-in average cost of 0.65% per year of assets managed.
Our strategy also considers trade-offs between ETF trading commissions and expense ratios to help minimize the total cost of investing. For small accounts, commission fees often have a larger impact in terms of costs, whereas for large accounts, the expense ratio alone can represent the largest fee. We’ll help you get into the right funds for your portfolio’s size.
How are the fees billed?
We bill our management fee in quarterly installments of 0.125%, deducted from one of the accounts we manage for you. When possible, we deduct this fee from taxable (e.g. taxable IRA) instead of tax advantaged (rollover IRA) accounts.
Are there costs to move my accounts to FutureAdvisor?
FutureAdvisor and our custodians (Fidelity and TD Ameritrade) don’t charge any account opening fees. Maintaining accounts at those custodians is also free.
Are there costs to cancel?
There are no fees associated with discontinuing FutureAdvisor Premium. Should you make the decision to cancel our services, we’ll simply remove ourselves as an advisor on your Fidelity and/or TD Ameritrade accounts, which returns them to your full control.