Our fees are designed to ensure that our interests are aligned with our customers. We don't grow unless your assets grow!
Rather than charging commissions or performance compensation, we collect a competitive fee based solely on the assets which we manage on your behalf. A fee only structure allows us to take a long term strategic approach to your portfolio. We do not have any incentive to sell certain products nor do we have a need to prioritize short-term result by taking unnecessary risks.
According to the United States Department of Labor, high expenses are one of the biggest hindrances to a successful investment plan. This is especially true for long-term investments like 401k savings:
In a 401(k) plan, your account balance will determine the amount of retirement income you will receive from the plan. While contributions to your account and the earnings on your investments will increase your retirement income, fees and expenses paid by your plan may substantially reduce the growth in your account which will reduce your retirement income. The following example demonstrates how fees and expenses can impact your account.
Assume that you are an employee with 35 years until retirement and a current 401(k) account balance of $25,000. If returns on investments in your account over the next 35 years average 7 percent and fees and expenses reduce your average returns by 0.5 percent, your account balance will grow to $227,000 at retirement, even if there are no further contributions to your account. If fees and expenses are 1.5 percent, however, your account balance will grow to only $163,000. The 1 percent difference in fees and expenses would reduce your account balance at retirement by 28 percent."
Here at TCG we believe our clients are our partners and we should each profit fairly from our relationship. That is why the TCG pricing model offers our clients an opportunity to significantly grow their hard earned savings while not being hindered by the excessive fees which many of our competitors charge. We only invest in low cost Exchange Traded Funds (ETFs). As a result, our maximum fee, inclusive of ETF and TCG management fees is 0.99 percent. Our 401k fees average 0.49 percent. These fees are among the lowest in the industry and are as much as 2.00 percent below other RIAs.
In contrast, many of our competitors regularly use or recommend mutual funds with much higher fees than ETFs. The average mutual fund has management fees of 1.15 percent and advisory fees averaging 1.10 percent nationally. In addition, many of the mutual funds our competitors invest in 12b-1 fees of up to 1.00 percent. Consequently, an investment plan from a typical advisor could begin with a greater than 3.00 percent negative return from fees. It is no wonder, then, that 86 percent of advisors do not beat the benchmark indexes associated with the investments objectives: the 3.00 percent fees embedded in their portfolios are simply to large to overcome.