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Fees in NQ account

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Jan 7, 2010 8:15 pm

For people that are RIA or fee-only, hwo do you typically handle NQ money from a fee perspective?  I ask because a lot of my NQ accounts are a big mix of multi-purpose money.  A typical account might have some MMKT, some CD’s, some muni’s, some individual stocks, and maybe even a fixed annuity or SPIA.  In contrast, most of my qualified accounts are more “managed”…an active fund or ETF portfolio for example.  I just don’t see how you could charge a consistent fee on a NQ account (unless it was all for one purpose, ie. capital preservation, growth, etc.).

Jan 7, 2010 8:19 pm

You can split it up.  40 bps for fixed income-type securities and maybe 125 bps for equities and the like.

Jan 7, 2010 8:26 pm
Moraen:

You can split it up.  40 bps for fixed income-type securities and maybe 125 bps for equities and the like.

Yep, you can also flat dollar it...
Jan 7, 2010 8:37 pm
Moraen:

You can split it up.  40 bps for fixed income-type securities and maybe 125 bps for equities and the like.

  Would you have to do it manually, or would you just come up with a pro-rated amount, like 65 bips until the mix changed?
Jan 10, 2010 4:00 pm

Ice - I didn’t say I did it that way.  Just that you could.

I use the same fee for the whole account.  But you make a valid point.  I wonder how people would deal with that.

I charge the same on cash too.

Jan 10, 2010 5:09 pm

[quote=iceco1d]That’s what I thought you did.  Can’t trust my reading comprehension with a hangover I guess!  CODMW2? 

[/quote]

As soon as I can convince my wife that just because she is working today, doesn’t mean I have to.  You would think cleaning the house before everybody else wakes up would earn me some points.