Your Account/Fees
- Your DeGreen Capital Management MARKTORS® portfolio will be maintained at industry leader, Charles Schwab, in a separate account, or accounts, in your name.
- Your funds are not comingled with others.
- About Charles Schwab:
- Charles Schwab provides custody for nearly one trillion dollars of client assets.
- Schwab is fully SIPC insured (this does not insure you against market losses).
- We’ve maintained a working relationship with Schwab for many years.
- Because we invest primarily in U.S.-traded ETFs, your MARKTORS® portfolio will generally be as liquid as a typical stock portfolio, subject to market value fluctuations.
- DeGreen Capital Management will manage the investments within your account(s) as an independent advisor. We will subtract our fee each quarter. Otherwise, we may not touch your money.
- You can check your investments online at any time. You will receive monthly statements from Schwab, and may receive periodic performance reports from us.
- You may fire us at will (Although we don’t recommend this!).
What Types of Accounts Are Eligible?
Virtually all types of accounts are eligible. These include individual accounts (including family trusts), IRAs, 401(k)s, irrevocable trusts, pension and corporate accounts. Investors in the U.S., and world-wide, are eligible to participate, provided certain Patriot Act disclosure requirements are met.
How to Open an Account
We at DeGreen Capital Management will complete all paperwork for investors accessing our services through either our DeGreen-Direct Platinum, or our DeGreen-Direct programs. Typically, this occurs through our Scottsdale office after Mr. DeGreen has completed a by-phone, or in-person, Personal Suitability Interview with you.
Investors accessing our services through our popular DeGreen-Plus Program will have their paperwork completed by a highly-qualified, specially-trained, independent advisor at our Scottsdale office. You will meet at our Scottsdale office with the advisor, who will help evaluate your overall financial planning needs, including your suitability for our program. Your advisor will conduct the very same suitability interview with you that Mr. DeGreen conducts with other program participants.
Either way, we sincerely welcome your business.
- Learn more about Your Personal Suitability Interview
- Learn more about our DeGreen-Direct Platinum, DeGreen-Direct and DeGreen-Plus investment programs.
Our Fees
You pay a small premium for our experience and expertise, and for our research, which often includes on-sight inspections of markets around the world. Our annual fees are deducted quarterly. These fees may be offset by the savings you may enjoy through our use of less-expensive exchange-traded funds (when compared to the fees of many actively-managed mutual funds). Savings cannot be guaranteed, however.
Our investment advisory agreement includes additional important details regarding our fees and services. A copy may be obtained by contacting us or your participating investment advisor.
DeGreen-Plus (Consolidated) Management Fee Schedule
Our fees are based on the aggregate size of your account(s) under our management, and are expressed as an annual percentage of your total assets under our management. Therefore, for example, a 1.00% annual management fee will be assessed quarterly as a .25% (25 bps) debit against your account(s).
THE DEGREEN-PLUS MAXIMUM CONSOLIDATED FEE SCHEDULE BELOW INCLUDES COMPENSATION TO YOUR MARKTORS®-CERTIFIED INDEPENDENT INVESTMENT ADVISOR.
You may elect to invest directly through our DeGreen-Direct Platinum or DeGreen-Direct programs. Investors in either of those programs enjoy lower fees than the consolidated fees listed below. Mr. DeGreen will review those fees with you during your suitability interview with him. However, DeGreen-Platinum or -Direct investors will not receive the independent guidance of a MARKTORS®-Certified Investment Advisor.
Consolidated Maximum Fee Schedule
Degreen-Plus Only
| Value of Your Accounts | Maximum Consolidated Fee |
|---|---|
| Minimum aggregate portfolio requirement is $250,000. Requirement is waived for existing clients. | |
| $250,000 – $499,999 | 1.95% |
| $500,000 – $999,999 | 1.75% |
| $1,000,000 – $4,999,999 | 1.50% |
| $5,000,000 – $9,999,999 | 1.25% |
| $10,000,000+ | 1.00% |
Minimum Account Size
To more effectively allocate your portfolio, and to reduce your transaction expenses, our minimum aggregate requirement for all new accounts is now $250,000, and is $100,000 for any single account. You may add any amount once your account is established. To obtain the lowest possible fee, we will aggregate the value of all accounts for your household. You are not penalized if your account value dips below your initial invested amount due to market losses.
Other Expenses
There are two other expenses you will incur in our program. We wanted you to be aware of them both.
ETF Fees: First, all ETFs charge a management fee. These usually equal a fraction of the fees charged by actively-managed mutual funds. However, domestic stock ETFs typically charge approximately 30-35 bps (30-35 100ths of one percent) annually. International ETFs, particularly emerging market ETFs, may charge up to twice that. Domestic bond ETFs charge significantly less. Management fees for international bond ETFs may be somewhat higher.
Transaction Costs: Each time we buy or sell an ETF, or other investment, within your account, Charles Schwab will assess a transaction fee. Although subject to change, Schwab’s transaction fee is currently $8.95 per trade, regardless of volume, provided you accept online confirmation of trades. During normal market conditions, we tend to migrate gradually into and out of various ETFs. This may help keep your transaction charges low. However, during volatile periods, you may incur additional transaction fees within your account.