Your Independent, FEE-ONLY Fiduciary Advisor, and Our Minimum Portfolio Requirements
DeGreen Capital Management is your independent, FEE-ONLY fiduciary advisor. We have no hidden agenda. Your best interest always come first.
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Our minimum new-client aggregate portfolio requirement is $1,000,000. Most clients invest more; but all clients who meet these minimums are welcome, as are existing clients who may have been “grandfathered” under previously-lower minimums.
Most clients have more than one account with us – perhaps, for example, an IRA and a taxable account. Provided no sub-account is less than $50,000, you may aggregate your accounts to meet our minimum requirement. We will always calculate your aggregate amounts under management to provide the lowest fee possible. Often other family members participate. In those cases, we aggregate the family’s total assets under management to calculate the lowest possible fee for all family members. You are never penalized if your account value dips below your initial invested amount due to market losses. You may add any amount once your accounts are established.
Your Best Interest Interview
Your Personal Best Interest Interview is an important first step toward achieving your financial goals.
Your exclusive, no-obligation Best Interest Interview is the important first step to our ongoing fiduciary relationship. Please call us today at (480) 609‐9900 to request YOUR interview. Keith DeGreen personally conducts most initial interviews, and Investment Advisor Sam DeGreen may also participate. Regardless, we all work closely as a team here at DeGreen.
Your interview is a professional, diagnostic review of your specific situation and needs. It is not a sales pitch. At your interview we will first determine whether what we do is appropriate for you. If not, we will be the first to say so.
We will then explore your specific situation with you, including your investment history, your objectives and cash needs, investment timeline, risk tolerance and many other factors. Together, you will objectively examine the inherent historical volatility and performance range of our 15 risk-adjusted portfolios to select the risk-adjusted approach best for you. Our goal is to assume as little volatility as possible to accomplish your specific objectives.
When you schedule your appointment, we will send you our important, exclusive Orientation Video, and a questionnaire to review. We will also provide a list of documents you should bring to the meeting. We will assist you throughout the process. Because of the importance of this meeting, spouses are required to attend.
We sincerely look forward to being of assistance.
Our Fees and Other Helpful Tips:
Portfolio Efficiency – Lower Costs and Added Value.
Portfolio efficiency is one the three keys to Smart, Proactive Investing. ETFs typically cost about 1/10th what conventional mutual funds cost – and an even smaller percentage of what annuity and most 401(k) subaccounts cost. Also, we strive to constantly ADD VALUE with our time-tested risk-adjusted portfolios, our unique Defensive Measures Protocols, and with our outstanding client-communications program. Even after our fee, our managed ETF portfolio program often costs less than it costs you to invest in conventional, actively-managed mutual funds, annuities and 401(k) plans without professional guidance.
Deduction and Refund of Fees: Our annual fees (described below) are deducted quarterly in advance, based on the value of your DCM-managed accounts at the end of each calendar quarter. You may “fire” us at any time – although we don’t recommend this! Upon termination, unearned fees are promptly refunded. Our Investment Advisory Agreement includes additional important details regarding our fees and services. A copy is available upon request.
Tip: You do not “diversify” by having multiple managers. It is your manager’s job to diversify for you. ETFs are the most diversified of all investments. When you use multiple managers, they may not know what the other managers are doing for you. This frequently causes investment redundancy, and may increase your overall risk and expenses.
Our Fee Schedule: Our fees at DeGreen Capital Management (DCM) are expressed as an annual percentage of the aggregate value of your assets under our management, regardless how many accounts we manage for you.
Break Points Save You Money. When you reach a fee “break point” with us, we charge a lower percentage back to the first dollar under management. That is, we do not apply the next lower rate only to the excess above the “breakpoint” as some managers do. We apply the lower fee back to the first dollar under management. This can result in substantial savings to you. Therefore, reaching the next “break point” will typically save you thousands of dollars annually.
DeGreen Capital Management
Maximum Fee Schedule
|If the Aggregate Value of your
Investments With Us Is:
Annual Fee Will Be:
|$5M – $9.999M||.85%|
|$3M – $4.999M||1.00%|
|$2M – $2.999M||1.19%|
|$1M – $1.999M||1.35%|
|$500K – $1,000,000||1.49% (Existing Clients Only)|
|$250K – $499,999||1.59% (Existing Clients Only)|
Other Expenses: The fees above cover all portfolio management fees at DCM. You are not charged more for third-party advisors. There are also two additional expenses we all incur within our portfolios:
- Charles Schwab Transaction Charges: Schwab charges ZERO commission on all routine ETF transactions placed through them by DCM.
- ETF fees: All ETFs charge a small fee called an “expense ratio”. These are subtracted from the total return of each ETF and are not charged separately. ETF expense ratios are usually a tiny fraction of the expense ratios charged by conventional, actively-managed mutual funds – usually about 1/10th the cost! For example, at DCM, our average ETF blended expense ratio is just 12 basis points (12/100ths of one percent) per year across our 15 risk-adjusted portfolios, and within our (16th) All-Equities Portfolio.
- Other potential fees: Sometimes the distinction between an ETF and a conventional mutual fund can be blurred. At DCM we reserve the right to use specialty mutual funds. This is something we rarely do, but these funds may carry higher expense ratios.
- Remember: DeGreen Capital Management is a leader in low-cost ETF investing. Clients who previously invested in conventional, actively-managed mutual funds, annuities, or 401(k) subaccounts, for example, often discover that our approach is significantly less expensive, even after our fee is applied.