How our fee works
Fauchard charges one published, tiered advisory fee based on the amount of assets we manage. No hourly rates, no product commissions, no hidden fees, and we don’t sell insurance.
Fee-only
Our tiered advisory fee
Financial planning and practice-level guidance are included in the advisory fee. Fauchard is paid using a tiered fee schedule based on how much we manage for your household. We have no other means of compensation, a choice we made so that no commission influences our advice on insurance, mortgages, loans, and what types of investments are best for your future. We want our success to be aligned with your success.
| Assets under management | Annual fee |
|---|---|
| Up to $2,500,000 | 0.95% |
| $2,500,001 – $10,000,000 | 0.50% |
| $10,000,001 – $20,000,000 | 0.375% |
| Above $20,000,000 | 0.25% |
How billing works
Our fee is deducted directly from the accounts that we manage on a quarterly basis, in arrears. This means you are never pre-paying for services and there is no reason to pay out of pocket; your accounts pay us directly at the end of each quarter. We will send you a clear, simple invoice.
Are there any other fees?
Nothing else charged by Fauchard, and nothing that is paid to us. As a fiduciary working on your behalf, we will always try to minimize or avoid other fees, but sometimes they are unavoidable. To keep portfolios diversified, we use low-cost index funds in some cases and for some asset classes. Because we are independent, we are not restricted to a specific fund issuer; we are constantly re-evaluating fund options to see if the same job can be completed by a functionally identical, less expensive alternative. Some types of trades still have small commissions charged by the custodian. These smaller fees typically don’t amount to much, but we are committed to helping you avoid them wherever we can.
Common questions
What does "fee-only" mean?
It means that Fauchard is compensated solely through fees paid by clients, never commissions, revenue sharing, or payments from any third party.
How are fees calculated?
Our advisory fee is a percentage of assets under management, assessed on a tiered basis, sort of like tax brackets, except they get smaller as your portfolio grows. For example, a $5 million portfolio would pay 0.95% on the first $2.5 million, and 0.50% on the next $2.5 million, averaging 0.725% overall.
Is there a minimum asset requirement to become a client?
Not for dentists. We waive our $1 million net worth guideline for actively practicing dentists and dental specialists, and for children of existing clients.
Do you negotiate rates?
No; we waive our fee for the children of Fauchard staff, but otherwise all clients are either on this fee schedule, or one of two alternative fee schedules that result in identical fees. You can read more in our Form ADV Part 2A, Item 5. A copy of the firm’s Form ADV Part 2A brochure is available on request and through the SEC’s Investment Adviser Public Disclosure system at adviserinfo.sec.gov.
Do you have more questions?
We would be happy to answer any questions you have about fees or how we operate. We believe in fee transparency and full disclosure of our conflicts of interest, and would appreciate the opportunity to talk through any of your questions or concerns.