Client Fees and/or Commissions and Expenses
Minimum Accounts Accepted
From $750 to $3,000 depending on the complexity of the plan involved and billed at our hourly rate of $175.
Investments and Portfolio Management:
A. A Total Fee of 1% to 2.2% annually (which includes custody, trading, and complete portfolio management) of assets under management and depends on the amount of assets under management and/or other contractual and service arrangements.
B. A Commission paid by the issuer of the security as described in the related prospectus or private placement memorandum. Commissions usually range from 1% on mutual funds to 7% and occasionally higher of the equity invested for some direct participation investments/alternative investments and insurance financial products.
Please note that unless a client's situation is unusually simple, we do not accept a new client without first creating a financial plan to guide our asset allocations and investment and manager selections. It is important that we understand our clients' unique situations and financial conditions before proceeding to help them. Our situation is much the same as that of a physician who must first understand a patient's condition and needs before prescribing a course of treatment.
Minimum account size: The firm is accepting new accounts at the level of $250,000 in invested assets under our direction. We can make an exception to this requirement so long as there is a reasonable expectation that, over an acceptable period of time, the account will reach this level in invested assets.
Below are descriptions of these fee structures.
In the financial services and wealth management fields, firms earn income in one of four ways:
2. Fees and commissions
3. Fees offset by commissions
Which way is best? Most of our clients believe that a blend works best for them. We do too. We do not have a preference for how we are paid since it tends to work out to be approximately the same regardless. So, if a client has a preference, we can tailor our compensation structure to suit. We always provide our clients with clear disclosure, in advance, of how we are being paid.
The public should be aware that almost all companies that create investments and insurance products pay to have their programs reviewed and comprehended by investment professionals and then represented and explained to the public. When our employees represent such products and a client acts on a recommendation, H. Beck, Inc. is typically paid a commission for the transaction. H. Beck, Inc. then pays part of the amount it receives to the Greenbrier Capital employee involved.
In the case of our customized, individually managed accounts in stock and bond portfolios, those portfolios are managed through our relationships with select outside firms. We are paid a percentage of the fees, the majority of those fees being paid to the portfolio manager(s). There are no extra expenses or surcharges and the total fee is always plainly disclosed along with the sharing arrangements. These fees vary though, depending on the amount of money under management. The rule is: the larger the sum under management; the smaller the fee as a percentage of the sum under management.
We maintain a low overhead, especially when compared to our competitors in the big cities who extensively advertise nationally and have layers of middlemen. GCC's highly efficient and synergistic business relationships around the nation allow it meet high product quality and lean operational cost objectives.