Investment Management

Your investments are a critical component to your financial plan’s success and therefore it is very important to manage them appropriately. The Ridgevale Financial Planning Investment Management Process is designed to be consistent and disciplined in order to provide for the best opportunity to achieve your stated goals.

To do this we employ Modern Portfolio Theory created by Nobel Prize winner Harry Markowitz. Put simply, Modern Portfolio Theory suggests that by diversifying your portfolio amongst unrelated investments we can maximize returns for a given level of tolerable risk.

In addition to diversification, we can also maximize returns by employing the portfolio management strategies below:

  • Tax Efficiency – tax loss harvesting, asset location
  • Investment Expenses – utilizing low cost passive investments and/or cost effective active investments
  • Rebalancing – maintaining a target allocation to account for portfolio shifts due to varying performance in asset classes
  • Cash Flow Management – coordinating contributions and distributions across taxable and non-taxable acocunts, adjusting portfolio for saving and spending goals
  • Charitable Intentions – optimizing for cash gifts vs highly appreciated asset gifts, Donor Advised Funds, Charitable Trusts

Maybe most importantly, there is the emotional value you receive by working with Ridgevale Financial Planning as your trusted financial advisor to guide you through times of market turmoil by providing objective context backed by time-tested fundamentals. Avoiding mistakes caused by making emotional decisions that seem very rational to our logical brains, but can be very costly to our portfolio returns.

Ridgevale Financial Planning’s investment management fee schedule has been designed to reflect the value we provide through professional asset management with over 15 years of experience.

The fee is charged as a percentage of the value of the account and is debited directly from the account monthly. See the example below:

Month Acct. Value Fee Pct. Month Fee Debit
September $312,451 1.35% $352
October $301,285 1.35% $339
November $326,753 1.35% $368

Our fee schedule is also designed so that the fee percentage begins to go down when the portfolio value reaches certain tiers, reducing the overall effective rate charged. All accounts in a client’s household are included in the portfolio value. See the example below.

Please refer to your Investment Management Agreement and/or Dynamic Wealth Advisors’ ADV for additional information regarding fees.

Example Schedule

IRA Value: $750,000; Roth IRA Value: $50,000; Trust Value: $1,000,000. Total Portfolio Value: $1,800,000.

Please refer to your Investment Management Agreement for details on your specific Fee Schedule.

Portfolio Value Value Tiers Tier Fee Pct. Tier Fee Amount
First $500,000 $500,000 1.35% $6,750
Next $500,000 $500,000 0.90% $4,500
Next $1,000,000 $800,000 0.70% $5,600

Portfolio Totals

Total Annual Fee: $16,850; Effective Rate: 0.94%; Month Fee Debit: $1,404

Tier Percentage Breakdown: First $500,000 at 1.35%; Next $500,000 at 0.90%; Next $1,000,000 at 0.70%; Next $1,500,000 at 0.50%; Next $1,500,000 at 0.45%; Next $5,000,000 at 0.40%; Next $10,000,000 at 0.30%; Above $20,000,000 at 0.20%.