How do I enter Client Advisory Fees?

The Fees section of the Profile is located under the Finance tab. You can enter portfolio expenses at the model portfolio level, but often each client will have a different advisory fee which can be reflected in this section. Please note that any fee you enter will be automatically applied to all of the plans for the client, so when entering Minimum and Flat fees - each plan will need to meet the entirety of the fee.  If the portfolio can’t sustain the minimum fee, the plan may fail earlier than using a blended rate.

You can enter the following fee types in inStream:

  • Blended Rate (with or without a Minimum)
  • Flat Fee

Blended Rate

Most advisors choose this option when setting the fee for a client.  inStream does not currently support tiered fee schedules, but you can calculate your blended fee rate by taking the Total Fees Paid/Total Portfolio Value.  This fee rate will be applied to any managed accounts included the plan.

Flat Fee

The Flat fee is a fixed amount that will be withdrawn from the portfolio each year regardless of the portfolio value.

You can also enter a combination of flat fees and blended rates.  For example, you can always charge the portfolio a flat fee of $1,000 per year in addition to the blended rate of 1%.

Minimum Fee

The minimum fee represents the minimum dollar amount that will be withdrawn from the portfolio for annual fees. 

How are fees shown in the cashflow report?

inStream also allows you the flexibility to apply the fee to the cashflow report one of two ways:

  • Distribution from the portfolio
  • Reducing the investment return

Distribution from the portfolio

To show the advisory fees as a distribution, make sure the “reduce return” slider is in the off position.  The distribution will be reflected in the Total Net Goals & Fee column and any associated taxes will be added to the capital gains tax column.

Reducing the investment return

To have the advisory fee automatically deducted from the portfolio return, you must turn the “reduce return” slider on.  The simulated net return will reflect the portfolio return netof advisory fee and associated taxes.



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