Mike, You're assessment. of the fee structure is spot on.
I would just add the 1% may actually not be bad for a small account. But a 10 million dollar account is just not 10 times the work of a 1 million dollar account. At least as the investment part of the service goes you might buy a 100 shares of particular stock for the $1 M account and 1000 shares for the $10 M account. The work is in the choice and timing of the companies to invest in not so much the quantity of shares. Basically economies of scale should apply here. Maybe the larger account should have a fee of 5 times the smaller account- but 10 times sure does feel excessive. As far as realtors go I think the same thing applies. I live in California with houses typically selling for a 1.5 million dollars. This is just an average family home.
Wirh a 3% commission that would generate $45,000. In many other parts of the country the same average home would sell for 500,000 and generate a $15,000 .commission. No wonder they're more real estate agents here in California than homes for Sale.
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Mike, You're assessment. of the fee structure is spot on. I would just add the 1% may actually not be bad for a small account. But a 10 million dollar account is just not 10 times the work of a 1 million dollar account. At least as the investment part of the service goes you might buy a 100 shares of particular stock for the $1 M account and 1000 shares for the $10 M account. The work is in the choice and timing of the companies to invest in not so much the quantity of shares. Basically economies of scale should apply here. Maybe the larger account should have a fee of 5 times the smaller account- but 10 times sure does feel excessive. As far as realtors go I think the same thing applies. I live in California with houses typically selling for a 1.5 million dollars. This is just an average family home. Wirh a 3% commission that would generate $45,000. In many other parts of the country the same average home would sell for 500,000 and generate a $15,000 .commission. No wonder they're more real estate agents here in California than homes for Sale.
Post: Fishing for Feedback
Link to comment from April 19, 2025