What We Do
Sabela Capital Markets is an evidence-based, fee-only, fiduciary investment advisory firm built on integrity and transparency. Our approach is based on financial science and grounded in economic theory. And our advice is motivated only by what’s in your best interest. We have no hidden fees and don’t receive kick-backs or commissions of any kind by anyone. We are compensated only and entirely by you, our clients.
We develop and manage a line of returns-optimized, globally diversified portfolios of Vanguard and Dimensional Fund Advisors mutual funds, including Sustainable Investment Strategies (ESG/SRI).
Dimensional Funds are not available to the general public. Instead, they are available only to institutional investors and to a select group of registered investment advisors, like Sabela Capital Markets, who understand the financial science behind investing and who encourage the discipline essential for long-term investment success.
For ongoing investment services we charge one low and fair fee that is based on percent of assets under management (AUM). You can see how our fees compare with other advisory firms here.
WHAT WE DO
- Risk profile
- Matching you to custom portfolio
- Portfolio monitoring
- Fund selection
- Tax harvesting
- Quarterly reports
- Biannual check-ins
- Here when you need us
HOW MUCH DOES IT COST?
- 0.80% for $0 to $500,000
- 0.65% for $500,000 to $1,000,000
- 0.50% for $1,000,000 to $2,000,000
- 0.35% for $2,000,000 to $5,000,000
- 0.20% for $5,000,000 to $10,000,000
- 0.15% above $10,000,000
We choose appropriate, returns-optimized investments for your 401k, 403b, 457, IRA, Roth, SEP, and other investment accounts.
According to a study done by Fidelity Investments of their Retirement Plan Participants, an overwhelming majority of investors, 87%, have not rebalanced their 401k and 403b for over a year. And 77% of these retirement plan participants are not confident in the funds they chose.
Investment Advisory Services
We provide peace of mind for your current investments and recommendations on how to improve your odds of success. We can help you answer questions like these:
- Is my current portfolio returns-optimized?
- Is my current portfolio risk-appropriate?
- Am I diversified well?
- Am I paying too much in fees and commissions?
- What actions do I need to take after market turbulence?
We offer both an hourly rate and a fixed fee for investment advisory engagements. Our starting rate is $350 and depends on the complexity of the project. We also offer a 6-month limited engagement starting at $500. Total cost for service will be clearly defined, explained, and agreed upon before work begins.
We help college-bound families navigate education funding strategies and save not just for the cost of college, but also on the cost.
- Which 529 plan is right for me?
- How can I maximize financial aid?
- How much should I take out in student loans?
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. Our starting fee for college funding is $500.
Pro bono Educational Presentations
We offer presentations for groups seeking information about investing, capital markets, and college planning.
The content of these presentations will vary depending upon the needs of the attendees. Topics include: evidence-based vs conventional approach to investing; market efficiency; the importance of diversification; the effect of costs on investment returns; behavioral finance; saving not just for the cost of college, but also on the cost; and 529 plans.
The presentations are free and purely educational.
Pro bono Investment Advisory Services
Our mission is to help individuals and families improve their odds of investment success.
We believe that everyone deserves trusted, knowledgeable, and experienced advice when it comes to investing and building wealth, regardless of income, savings, or age.
We also understand that not every individual or family is able to pay for investment services. Indeed, it is those who can’t afford investment advice that may need assistance the most when it comes to saving for the future. That’s why we offer free investment health check-ups. We can help you determine how much to save, where to open an account, and the asset allocation that may help improve your odds of investment success.
Sabela Capital Markets adheres to and advocates for the Fiduciary Standard Best Practices. Our core fiduciary duties include: Serving in the client’s best interest; Acting in utmost good faith; Acting prudently, with the care, skill and judgment of a professional; Avoiding conflicts of interest; Disclosing all material facts; and Controlling investment expenses.
Sabela Capital Markets is also founded on the following principles:
Advising, not facilitating
Investing, not speculating
Conviction in our philosophy
Confidence in our advice
Commitment to our approach
Managing your emotions and biases
Focusing on you
Filtering out the noise
Not being everything to everyone
Other Types of Investment Fees and Expenses
Sabela Capital Markets does not get compensated by third parties. We do not and shall not receive any portion of any third-party fees and costs. We are paid exclusively by our clients.
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. Such charges and fees are exclusive of and in addition to our fee.
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 Vanguard and Dimensional funds in our portfolios. Vanguard and Dimensional do not charge load fees, sales charges, redemption fees, or 12b-1 fees. Their expense ratios are among the lowest in the industry, on average lower than 98% of category peers (for Dimensional, that’s .38% vs 1.18%)*.
*Morningstar Category Average
Sources: see Appendix.