Target market-mid to high-net worth sophisticated investors. Mostly male, ages 35+ with a big focus on ages 55+.
Here is a very rough draft of a marketing letter of what I am attempting to do:
As you may or may not know, I have been a financial advisor for the past 22 years. I have also been an adjunct instructor for the American College of Financial Services where I’ve taught Investments. My other line of business, since 1995, has been financial planning, which utilizes various insurance products including life insurance, long-term care insurance, disability insurance and annuities. Generally speaking, the investment industry is based off of charging a fee for asset management and as the assets under management grow, advisers make more money. Unfortunately, for the client, under this model the fees which they pay also significantly increase. Auerbach Investment Services (AIS) is making a major change to this model which should save clients (with at least $500,000 in investable assets) a significant amount of money and I wanted to share it with you.
Beginning next month, I will no longer be working under a fee-based model. Alternatively, I have created a subscription model, where I share 100% of my investment recommendations in four separate newsletters. The four letters are as follows:
1. AIS Growth with Income
2. AIS Metals, Miners and Energy
3. AIS Speculation
4. AIS Put and Call
A typical $1 million investment account with an advisor generally pays around $15,000 in advisory fees plus potentially an additional $10,000 in mutual fund fees (these fees are hidden inside the mutual funds and will vary in amount). In other words, it is not uncommon for a retail investor to pay over $20,000 a year per million dollars invested with an advisor.
The AIS subscription model works as follows:
1. Only individual stocks and ETFs are recommended (therefore no hidden mutual fund fees. ETFs do have small fees)
2. No account transfers are necessary (all subscribers keep their accounts where they are currently held – Fidelity, Schwab, Vanguard, etc.)
3. Subscription costs are as low as $400 a month
4. Subscription costs are not tied to the value of your portfolio. So, if your portfolio were to double in value, your subscription cost would not increase proportionately. In an advisory account, if your million-dollar account were two double, your fee would significantly increase as well. The AIS subscription model does away with those unnecessary fee increases
5. I send out regular email alerts to all subscribers indicating stock recommendations, buy up to prices, trailing stop losses, and any sell recommendations. Subscribers also receive a free newsletter covering the general markets both here and abroad, Geo political news, and economic news.
6. It is up to each subscriber, after reading the recommendation, to decide if they want to invest or not. If interested, the subscriber would log into their account, and buy the recommended security
7. AIS subscribes to a significant amount of independent research from multiple sources. In aggregate, the newsletters cover just about every sector of the publicly traded markets both here and abroad. AIS will sift through the hundreds of recommendations from all the research firms, and recommend only those ideas it feels has the best investment potential.
As you can imagine, the cost savings are significant on an annual basis, and are even more powerful when compounded over time (see separate attachment). If an investor is willing to take an hour or two a month to read the newsletters, and make the transactions, they can save hundreds of thousands of dollars overtime.