We started this firm so we could help people invest the way people inside Wall Street firms invest…not how Wall Street tells their unsuspecting clients to invest.
We adhere to the fiduciary standard and only utilize low cost index funds to build client portfolios.
THE low Fee Advantage
At ELC Advisors we charge 0.40% of assets under management up to $4MM.
Above $4MM in assets, we charge 0.25%.
There are no start-up fees, no annual administration fees, and no hidden costs.
Most wealth managers charge 1% or more of assets that they manage. With so much advancement in technology, that's way too much.
A client with a $500,000 portfolio can expect to pay at least 1% or $5000/year with a traditional advisor. With ELC Advisors, that same client would only pay $2000/year. i.e., that client would save $3000/year with ELC Advisors.
Add in the power of compounding and your future might look very different with an expensive advisor.
High advisor fees persist because the public doesn’t know that a low cost advisor service exists. ELC Advisors has an investment management fee that is a fraction of the national average. This fee covers all services and expert advice. A substantial fee savings keeps more money in your pocket and compounds into greater wealth.
Don't mortgage your future by overpaying for investment management.
THe Fiduciary Advantage
Working with an advisor that is a fiduciary Registered Investment Advisor (RIA) ensures that your interests are always put first.
This isn’t the case when working with a Wall Street broker adhering to the suitability standard. A broker is under no obligation to put the client’s interest ahead of their own. This generally means higher fee products that benefit themselves and their firm.
Always have Access to your accounts
We have chosen TD Ameritrade to custody your assets. Accounts are held in your name and you will always have 24/7 access. You will receive monthly statements and trade confirmations directly from TD Ameritrade.
TD Ameritrade offers commission free trading to further lower your investing expenses.
We only have limited power of attorney to make trades to implement asset allocations and to deduct quarterly fees.
Strong partnerships for a better client experience
We begin with an extensive discussion of your future needs to create a long-term financial strategy for you and your family. We develop an Investment Policy Statement (IPS) and then create a cost effective asset allocation model best suited to your goals. We regularly review your progress to ensure you are on the path to meeting your objectives.
How we work with you
Active vs Passive Debate
Low Cost Indexing
Accept market returns by buying broadly diversified funds
Rebalance (sell high, buy low) back to Investment Policy Statement (IPS)
Adhere to Efficient Market Hypothesis
*One cannot consistently achieve returns in excess of average market returns on a risk-adjusted basis given the information available. Prices reflect all information.
Expensive fund managers
Try to outperform the market by picking individual stocks/bonds
Shift asset classes based on market conditions
Belief that they can outsmart the market
RIAs vs Wall Street
RIA: Registered Investment Advisory
Fiduciary standard – Clients’ interests first
Fiduciary standard better protects individual and institutional investors
Interests aligned with clients through asset-based pricing
Advocates passive management
Suitability standard – Firm’s interests first
The suitability standard can end up causing conflicts between a broker-dealer and underlying client
Incentive to sell high fee, high commission product
Pushes active management
Clients come first
As an RIA, ELC Advisors adheres to the fiduciary standard. There are no misaligned incentives, as with broker dealers.
Data-driven philosophy: invest in passive management for better, sustained results
Passive management consistently outperforms active management by all measures
Ignore the noise
Every year investors pay billions of dollars to financial advisors and fund companies who claim they can achieve superior returns. This claim is not supported. Few advisors, if any, have the skills needed to beat the markets, and those few people cannot be identified in advance. Nor does any out-performance persist over time
What do you choose?
There are two options a person can choose when managing an investment portfolio; active management and passive management. Active management is the belief that a person can achieve superior returns over market indexes. In contrast, passive management is all about achieving, as close as possible, the returns of the financial markets. Passive investors understand that market returns are good returns. The desire to beat the market is a powerful force and investors will spend a considerable amount of time and money searching for superior returns. That search is promoted by a multi-billion dollar Wall Street marketing campaign that employs an army of highly compensated salespeople. Despite all the time and money spent trying to identify ways to beat the markets, the net result falls far below expectations.
Low fees deliver value to clients
ELC Advisors charges 0.25% – 0.40% vs. >1% from most wealth managers. Low fees drive greater client returns.
Customized asset allocation
Truly understand the needs and goals of our clients. Build transparent, liquid and simple portfolios that meet client objectives. Maintain capital discipline through turbulent markets
Listen to those in the know
Every academic study on the subject points to one clear message; in aggregate the more you pay to invest, the lower your returns will be. Our clients do not participate in the massive wealth transfer from Main Street to Wall Street. They earn their fair share of market returns by holding a select basket of low-cost index funds and exchange-traded funds (ETFs) that match market performance.
Do the right thing
After seeing the inner workings of large and boutique investment banks, there is no question low cost investment management is the best method for clients. ELC Advisors, LLC is a leader in low-cost portfolio management. For a small annual fee, we will design, implement and maintain a low-cost, passively managed portfolio that is appropriate for your needs. Our services are economical, efficient and practical
Data trumps hope
Very few mutual funds, hedge funds, private equity funds or investment advisors are able to achieve superior performance with enough consistency to make it worth the effort. After paying fund fees, advisor fees, taxes, broker commissions and other related investment costs, an investor’s return typically falls well below the market. Spending time and money trying to beat the market with active management is counterproductive.
WARRANTIES & DISCLAIMERS
There are no warranties implied.
ELC Advisors, LLC (“ELC Advisors”) is a registered investment adviser operating in TX and AZ. ELC Advisors may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. ELC Advisors’ web site and newsletter is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of ELC Advisors’ web site on the Internet and newsletter via email should not be construed by any consumer and/or prospective client as ELC Advisors solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by ELC Advisors with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of ELC Advisors, please contact the state securities regulators for those states in which ELC Advisors maintains a registration filing. A copy of ELC Advisors current written disclosure statement discussing ELC Advisors business operations, services, and fees is available at the SEC’s investment adviser public information website –www.adviserinfo.sec.gov or from ELC Advisors upon written request. ELC Advisors does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to ELC Advisors’ web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.