Fees and minimums

Portfolio Solutions Low Management Fee

The Portfolio Solutions management fee is 0.25% per year, subject to a $625 per quarter minimum fee per household. This management fee is the only source of advisory revenue for our firm.

There are no start-up fees, no annual administration fees, and no hidden costs. And, unlike many advisors, Portfolio Solutions does not participate in any mutual fund fee sharing arrangements, brokerage firm commission splitting programs, or pay-to-play client referral programs.

The Low Fee Advantage

A typical financial advisor collect fees of 1% per year on average for their clients. That's much too high given the technological advances in investment management industry over the past 20 years. High advisor fees persist because the public doesn't know that a low cost advisor service exists and has been available for more than a decade.

Portfolio Solutions has always had an investment management fee that is a fraction of the national average. This fee covers all services and expert advice. A substantial fee savings keeps more money in your pocket and compounds into greater wealth.

Lowest Total Cost and Highest Service Standards

Portfolio Solutions provides all clients with the highest quality advice and service. We are committed to keeping your total investment cost very low so you benefit as much as possible from the income and growth provided by the global financial markets.

Total cost includes our management fee, mutual fund expenses, and trading costs. We select only low-cost mutual funds and ETFs for client portfolios. These funds are meticulously researched for the best overall asset class representation at the lowest expense. We have also negotiated low trading costs with Charles Schwab so that commissions are not biting into your returns. We believe our in-depth research, commitment to low costs, and high client service provides you with an unbeatable value.

Mutual Fund Expenses

Client accounts hold mutual funds and exchange-traded funds (ETFs) which have expenses which are not related to the Portfolio Solutions management fee. All funds have operating costs that are expressed as an Expense Ratio in each fund’s prospectus. In general, the funds we select for Clients’ accounts have very low expense ratios – among the lowest in the industry. The weighted average expense ratio is about 0.15 percent per year. Portfolio Solutions is not compensated by fund companies for using their products, nor are we biased in favor of one fund company or another. Our goal is to research and select the best funds and ETFs that represent each asset class.

Trading Costs

Charles Schwab Institutional is the custodian for Client accounts and that firm is paid a commission for transactions conducted in accounts. The total commission costs will depend on the type of securities traded and the frequency. Clients should expect to pay a couple of hundred dollars per year in commissions to Charles Schwab. Portfolio Solutions reserves the right to negotiate trading costs with Charles Schwab in an effort to achieve the best execution for all Clients. Portfolio Solutions is not compensated from commissions, and we have no incentive to trade in an account other than to keep a portfolio in line with its investment strategy.

See ADV Part II for details about Portfolio Solutions management fees.