No Product Sales. No Sales Commissions. Transparent Fee Structure.
Markets are Unpredictable. Costs are Forever.
Expenses are one of the most powerful predictors of future investment performance*, therefore it is imperative that your financial planner is committed to keeping fees low. SGH Wealth Management utilizes a lower-cost† fee structure that is completely transparent.
The typical financial advisor fee of 1% is somewhat misleading in that it does not always include all the expenses associated with your investment account nor the internal cost of investing. It should be noted that if you are currently paying 2% or more in fees, you are statistically highly unlikely to ever beat the stock market.‡ If you are currently using a broker, you should know that the median all-in cost of a broker is 2.27% per year§.
Over the latest 15-Year period 89% of all domestic Active Mutual Funds underperformed their benchmarks‡
How are we different? By having CFA Charterholders on staff, SGH Wealth Management is not just another middleman to the investment process. In addition to being able to work with experts in the industry, we leverage this asset by not having to rely on mutual funds or outside active management, which allows us to lower costs for our clients by avoiding many hidden fees in investing. By being able to implement our investment strategy in-house, our firm’s unique competitive advantage passes on this savings directly to our clients.
Additionally, with SGH Wealth Management, there are never any back‐end charges or penalties to leave our management, and we are never paid by the investments that we recommend.
The above chart represents the value of a portfolio given a $5,000 per year investment for 40 years, assuming a 7% rate of return, and the difference of 1% All In Fees vs 2% All In Fees.*
*Source: Vanguard, “Shopping for Alpha: You Get What You Don’t Pay For” (Wallick et al., 2011).