Envoy Advisory IRA Expenses

What are your advisory expenses for your IRA?

The Envoy IRA offers mutual funds, ETFs, and managed model portfolios as the investment options. The investments offered Envoy IRA are reviewed and overseen by Envoy Advisory, Inc.

The items considered by Envoy Advisory, Inc. in selecting and monitoring investments in the Envoy IRA include but are not limited to:

• Manager tenure
• Performance against a benchmark index
• Performance against the Morningstar Peer Group
• Sharpe Ratio against the Morningstar Peer Group Average
• Alpha or how much added value the manager generates
• Expenses
• Fund size
• Investment decision making process
• Manager skill
• Source of investment ideas
• Risk management
• Team structure and alignment with investor’s interests

Advisory expenses are typically expressed as basis points. Remember, a basis point represents 1/100th of one percent. 

The Advisory expense rates for Envoy IRAs are based on the balance of your account. The rate starts at 40 basis points per year for accounts up to $100,000 and are lower for balances in excess of $100,000. This starting rate is 40/100ths of one percent multiplied by the amount of assets in the IRA on an annual basis. This expense is deducted from your account on a monthly basis at the rate of 3.33 basis points (40 basis points per year divided by 12 months in the year) or 33/100ths of one percent. The advisory expense is assessed at this rate multiplied by your account balance as of the final day of the prior month.

Example: If you have an account balance of $10,000, you could expect to pay about $40.00 per year, or $3.33 per month.