Defining Standard Deviation
Standard deviation refers to the fluctuation in the value of your portfolio. The ups and downs of a portfolio can be thought of as a roller coaster. How scary is the roller coaster? A roller coaster that is perfectly flat has no standard deviation. It does not go up or down. A roller coaster with sharp ups and downs has a big standard deviation. Standard deviation is a measure of risk. It could be upside fluctuation or downside.
Why It Should Be Maximized
The greater the risk, the greater the potential reward over time. As standard deviation goes up, profit goes up. No risk means no profit.
Why It Should Be Minimized
The problem with risk is that the roller coaster could be heading down when the investor needs the money. Depending on their age, they may not have the time to wait for the upswing. There is a correct amount of risk based on age, temperament, etc. An old person cannot afford to take as much risk as a young person.
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. Also, if you would like to submit a post to my blog, please contact me.
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Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?
