College is outrageously expensive. And it will only get more expensive by the time your kids are ready to apply. Preparing for college expenses is not just about choosing the right 529 savings plan. That’s usually the least complicated piece of the puzzle and in many cases it’s not even the most important one. There are many other significant factors that can help you determine which college you can afford, including:
- FAFSA Application/SAR/Expected Family Contribution (EFC) calculation
- Generating a custom list of colleges most likely to meet a family’s financial situation
- Strategies for Increasing Financial Aid
- Grants and scholarships
- Loan strategies
We can help you navigate this process and save not just for the cost of college, but also on the cost. Our starting fee for college planning is $500.
Sabela Capital Markets is an independent, fiduciary, fee-only registered investment advisor, which means that we are compensated entirely by you, our clients. We do not earn commissions whatsover, nor do we get paid by any outside sources or third parties, and that includes Dimensional Fund Advisors. Our advice is only motivated by what we think is in your best interest.
Our portfolios are diversified globally and target sources of higher expected returns. The minimum initial investment requirement is $100,000; however, we reserve the right to lower this amount or waive it entirely. The earlier you can begin to invest using sound principles, the more impact time can have on your returns; it is the most powerful commodity for any investor. And regardless of age or assets, everyone should have access to trusted investment advice.
For investment management we charge one low and fair fee, calculated by assessing the percentage rates using the predefined levels of assets as shown in schedule below, resulting in a combined weighted fee. For example, an account valued at $2,000,000 would pay an effective fee of 0.6125%.
Note that in addition to our investment management fee schedule above, you may incur additional expenses charged by outside providers that we use for our services (custodial fees, mutual fund expenses, etc.). Please see the section below on “Other Types of Investment Fees and Expenses”. We do not take part in or share any of these additional, third-party fees.
Investment Advisory Services
We offer both an hourly rate and a fixed fee for investment advisory services. Common requests include:
- Investment portfolio review
- Risk assessment/asset allocation recommendations
- 401k review
Our starting rate is $350 and depends on the complexity of the project. Total cost for service will be clearly defined, explained, and agreed upon before work begins.
Other Types of Investment Fees and Expenses
Our investment management fees are exclusive of transaction fees and other related costs and expenses. Clients may incur certain charges imposed by custodians and other third parties such as custodial fees, wire transfer and electronic fund fees, and other fees and taxes on securities transactions. Mutual fund and exchange-traded funds also charge internal management fees, which are disclosed in a fund’s prospectus (for a summary, see below, “Mutual Fund Fees” for the fees that Dimensional charges for their asset funds). Such charges and fees are exclusive of and in addition to our fee.
We do not accept compensation for the sale of securities or other investment products including asset-based sales charges or service fees from the sale of mutual funds. We do not and shall not receive any portion of any third-party fees and costs. Sabela does not get compensated by third parties. We are paid exclusively by our clients.
We recommend TD Ameritrade Institutional for custody of your investments. TDA is one of the top 3 custodians and maintains a reputation for cutting-edge technology and outstanding client service. At TDA, execution services for Dimensional Funds Advisors products are also the lowest in the industry, $9.99 per transaction. However, clients may custody their assets at a custodian of their choice.
Mutual Fund Fees
We use Dimensional Funds in our portfolios. Dimensional does not charge load fees, sales charges, redemption fees, or 12b-1 fees. The following table describes the expense ratios for the funds that we may use for your investments: