Efficient Low Cost Advisors
ELC Advisors
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
Less Expense
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.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.
THE FIDUCIARY ADVANTAGE
Clients First
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.
RIAs are required by law to put your best interests above all else
ALWAYS HAVE ACCESS TO YOUR ACCOUNTS
Custodian
We have chosen Charles Schwab 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 Charles Schwab.Charles Schwab 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.
REPORTING
Client Portal
We provide a client portal, performance reporting and quarterly billing with our trusted vendor AssetBook. We will update you quarterly via the client portal with statements.
Collaboration
How We Work Together
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.
Investment Approach
Passive Investing
Low Cost IndexingAccept market returns by buying broadly diversified fundsRebalance (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.
Investment Philosophy
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.
Message from the Founder
A Commitment
"It's a privilege to serve clients. I started this firm in 2012 after years on Wall Street. I feel lucky every day that I get to work with people that have entrusted me with their hard earned capital.I invest client capital the same way that I invest my own. That's not a claim too many on Wall Street can make. Please let me know how I can be helpful."Erik Cooper
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FAQs - Frequently Asked Questions
What is your management fee?
The annual investment management fee for ELC Advisors is 0.40% of investment assets managed up to $4mm. The fee is 0.25% on assets above $4mm. The fee is 0.10% on assets above $20mm.
What is the minimum size relationship needed to get started?
A minimum relationship of $500,000 is required. There are no limits on the number of investment accounts or balances per account.
How can you only charge 0.40% and as low as 0.25%?
ELC advisors is committed to charging you a fair price. A typical investment manager charges his/her clients fees of 1% per year on average. That’s much too high given technological advances in the investment management industry over the past 20 years. High investment manager fees persist because the public doesn’t know that a low-cost solution exists.
Are you a financial planner?
ELC Advisors is an investment management firm. We are not “traditional” financial planners. However, as part of developing your Investment Policy Statement we will discuss financial planning-related topics.
How quickly can you start managing my investments?
The process to start managing your investments can vary, depending on your availability to develop your Investment Policy Statement. For a motivated investor, the process may take as few as 10 business days.
Am I involved in the day-to-day portfolio decisions?
Each portfolio follows an investment strategy that is decided and approved by you in advance and is outlined in your Investment Policy Statement. You are hiring ELC Advisors to monitor and manage your accounts, according to your Investment Policy Statement. As such, you will not be hassled by us seeking permission to perform routine management and monitoring. If you have questions about your account(s), simply contact us by phone or e-mail.
What is index investing?
Index investing is based on the concept of capturing stock and bond market returns at the lowest possible cost in order to obtain the highest probability of meeting your long-term financial goals. Index investors generate better returns than the majority of market timing and stock picking investors by using diversified, low-cost, tax-efficient asset classes that provide the returns of the markets. The more you pay for investment advice and products, the lower your expected return.
Do you publish the past performance of your strategies?
As fiduciaries, ELC Advisors adheres to the strictest performance reporting standards. Each client receives a personal quarterly performance report that compares your returns to applicable benchmarks, as defined in your Investment Policy Statement.
Where is my money held?
All client accounts are held by a qualified independent custodian, Charles Schwab, Inc., member FINRA/SIPC/NFA. ELC Advisors has selected this custodian because of its commitment to client service, low costs, security and a dedication to operational efficiency.
Does anyone at ELC Advisors have access to my money?
No. ELC Advisors employees do not have access to your money. Your money is held in an account in your name by Charles Schwab. ELC Advisors only has limited authorization to trade securities with discretion and deduct our quarterly management fee from the account under management. We have no other access or authority to your account(s).
Am I charged a custody fee?
No. Charles Schwab does not charge clients a custody fee to hold assets. Some Wall St. firms charge as much as $3,000 per year to custody client assets.
Is Charles Schwab the only custodian available to clients?
Yes. They act as a custodian of all our Clients’ assets, which means they hold securities and cash and facilitate trading activities. ELC Advisors has selected Charles Schwab, Inc. as custodian because of their commitment to client service, low trading cost, and a dedication to operational efficiency. Our management fees are kept low because of the operational efficiency created by having only one custodian.
IS ELC Advisors affiliated with Charles Schwab, Inc?
No. ELC Advisors is not affiliated with Charles Schwab, Inc., nor are we compensated by that company in any way through fees, commission, or incentives. In the spirit of full disclosure, our firm is supplied necessary software that allows our in-house portfolio management system to work efficiently and cleanly with Charles Schwab’s back-office operations and trading desks. This software is available to all investment advisors.
Will I have internet access to my account?
Yes. Free internet access is available to Clients through a special Charles Schwab, Inc. website 24 hours per day, 7 days per week. The website also is the source for immediate information on account activity and provides you with many reports including year-end tax information.
How often do I receive statements and reports?
Charles Schwab Inc. sends monthly statements to all clients for all accounts. These statements show account balances, trades, cash flows, and unrealized gains. Statements are available in paper as well as through email. In addition, ELC Advisors will send a detailed performance report each quarter that compares your portfolio’s performance to a series of relevant market index benchmarks. We urge you to compare your monthly statements from Charles Schwab with the quarterly statements we send you.
Will I receive reports that help with tax preparation?
At the end of each year, Charles Schwab, Inc. will send a Form 1099 to each client that has a taxable account. Included in your Form 1099 will be a realized gain/loss report that will assist you in preparing your annual tax return.
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WARRANTIES & DISCLAIMERSThere 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.Podcast and Youtube DisclosureThe opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security.It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results.Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.ELC Advisors is a registered investment adviser. Advisory services are only offered to clients or prospective clients where ELC Advisors and its representatives are properly licensed or exempt from licensure. No advice may be rendered by ELC Advisors unless a client service agreement is in place.Blogs DisclosureThis content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the ELC Advisors employees providing such comments, and should not be regarded as the views of ELC Advisors LLC. or its respective affiliates or as a description of advisory services provided by ELC Advisors or performance returns of any ELC Advisors Investments client.Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by ELC Advisors or its employees. ELC Advisors and its affiliates may invest in any technology company discussed. The views reflected in the commentary are subject to change at any time without notice.Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. It also should not be construed as an offer soliciting the purchase or sale of any security mentioned. Nor should it be construed as an offer to provide investment advisory services by ELC Advisors.Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. ELC Advisors manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.Any charts provided here or on any related ELC Advisors personnel content outlets are for informational purposes only, and should also not be relied upon when making any investment decision. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Information in charts have been obtained from third-party sources and data, and may include those from portfolio securities of funds managed by ELC Advisors. While taken from sources believed to be reliable, ELC Advisors has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, posts may include third-party advertisements; ELC Advisors has not reviewed such advertisements and does not endorse any advertising content contained therein. All content speaks only as of the date indicated.ELC Advisors is a registered investment adviser. Advisory services are only offered to clients or prospective clients where ELC Advisors and its representatives are properly licensed or exempt from licensure. No advice may be rendered by ELC Advisors unless a client service agreement is in place. ELC Advisors manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.The Plain Wealth Media, an affiliate of ELC Advisors, may receive payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by ELC Advisors or any of its employees. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.
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