In Short
It’s the most important rule in economics. Basically the more there is of a particular item, the less valuable each individual item is. The less there is, the more valuable each item.
Example of Supply and Demand
Imagine a marketplace that sells apples. If there are many apple sellers (high supply) but very few buyers (low demand) then the sellers have to compete for those buyers by selling at a low price. If there is only one apple seller (low supply) but lots of buyers (high demand) then the buyers have to compete for the seller’s apple inventory and thus the seller can charge a high price.
Application of Supply and Demand
The price of all items in a free market is controlled by supply and demand. That applies to currency, stocks, bonds, gold, etc. Understanding this principle is a huge advantage in any pricing or valuation situation.
Fee Structure
| Rate | Assets Under Management |
| 1.44% | Below $125,000 |
| 1.00% | Between $125,000 and $750,000 |
| .85% | Between $750,000 and $1,250,000 |
| .80% | Between $1,250,000 and $1,750,000 |
| .75% | Between $1,750,000 and $2,500,000 |
| .70% | Between $2,500,000 and $3,250,000 |
| .65% | Between $3,250,000 and $4,250,000 |
| .60% | Above $4,250,000 |
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. If you would like to submit a post to my blog, please contact me.
If anything that I mentioned above interests you, please consider downloading my free e-book. The book contains my thoughts on investment management and some information that I think everyone should know. You can also download it below.
E-Book Download
Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?
