Management Fees
The question of cost of services usually is discussed in the initial interview. Nevertheless, for introductory purposes, the amount of quarterly fees that are charged is based on the assets under management. Typically, money managers require high minimum assets to manage an account, but SCM Associates, Inc. does not have an absolute minimum. However, we use a variable rate: the more the assets the lower the percentage. Also, we recommend $250,000 minimum to allow for a broadly diversified portfolio.
By comparison if you invest in mutual funds, you pay management fees also. A mutual fund is managed by a money manager who charges the fund a fee. The mutual fund investor pays a pro-rata share of the expenses of the fund, including auditing, custodial services, and management fees. The total expenses of a mutual fund may run from one to two per cent and are deducted from the assets held by the fund.
You can hire SCM Associates, Inc. within the range of the costs of a mutual fund and have the advantage of an individually tailored portfolio of stocks or bonds with a money manager to whom you can talk. Also, tax liability can be better controlled for taxable accounts. Hiring SCM Associates, Inc. is a great way to know at any moment how a full-time, professional money manager is investing your money.