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I-Pension and a backwards fee for AUM

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Sep 15, 2009 4:38 pm

Recently came across I-pension, an RIA in Mass.  Noticed that they actually charge a smaller % on AUM for smaller accounts.  So, when moneybags walks into the office, how does i-pension defend the value proposition that they created and not discount the larger account down?  Any thoughts on what that conversation would look like?

Sep 15, 2009 4:54 pm

Because it's a flat fee, not a % fee.  You do realize they are referring to managing individual 401K accounts, not at the plan level.  IOW, you go to them for help on your 401K that you have at IBM, they will give you advice on your asset mix and charge you either $365/yr. if over $40K, and $182 if under $40K.

They do this, not to make money (per se), but to secure that rollover when the client retires or changes jobs.