Investment/Transaction Fees

Eddy Company, LLC is a “fee-only” investment advisory and tax preparation firm.  A “fee-only” firm does not generate revenues from commissions or fund fees (loads).  In the case of asset management, the only fee charged to the client that transfers to the firm is a yearly assets-under-management fee (see below).  The firm is committed to using no-load investment products that keep expenses low. Therefore, investment models used, depending on risk tolerance, have an average weighted expense ratio of approximately 0.25-0.60%.  The firm agrees with research reiterating that much of portfolio performance may come from asset allocation.  Higher fund expenses may not always translate into higher performance over time.

The firm is also committed to passing on low transaction fees for trades.  The firm’s custodian charges approximately 0.5 cents per share on average for equity and ETF trades.  This is one of the lowest transaction costs in the industry.

Assets-Under-Management Fee

The firm charges an annual (charged in arrears quarterly) assets-under-management fee.  That fee will never eclipse 1.85% of assets-under-management. The fee is tiered based on the size of portfolio and is negotiable with your advisor at the firm.  The firm does not have a minimum account size and is committed to keeping fees reasonable.  Ask your advisor for more details regarding this fee for investment management.

Tax Preparation Fees

Tax preparation fees are quoted per project, not per hour.  Therefore, a quote is made based on the preparation and filing job needed. That is based on the overall complexity of the job as estimated from the onset.  Fees are generally in line with industry averages.


Financial Planning Fees

With intentions to invest assets with the firm, prospective clients will receive a complimentary free financial plan outlining time horizon, tax implication, liquidity needs, and other constraints.  The firm also provides stand-alone financial planning services to those who desire them.  Plans usually are priced between $200-$500, depending on complexity.