Fees and Compensation

We charge an investment advisory fee that in calculated in accordance with the following fee schedule:

  Assets Under Management Advisory Fee
  The first $500,000 1.00%
  The next $500,000 0.75%
  Over $1,000,000 0.50%

 

We bill investment advisory fees in advance on a quarterly basis during the first month of the quarter. The fee is calculated by multiplying the per annum rate by the month-end market value of the investments under management and dividing by four (4). The month-end market value is determined at the end of the preceding quarter. New accounts that are opened during the quarter are billed on a prorated basis at the time monies are deposited to the account. If the investment advisory contract is terminated before the end of a quarter, our client will be reimbursed a pro-rata portion of the previously charged fee. We will automatically initiate the refund.

The fee schedule is negotiable with our client. Rates may deviate from the above schedule based upon the size of the account being managed. For example, a $10 million dollar account may have a fee of less than 0.50% of the assets under management. We may also offer a rate that is less than the fee schedule when our client is experiencing a short-term financial hardship. For example, if our client has lost his or her job, we may offer a lower rate.

For our clients who do not require continual and regular investment advisory services, we offer consulting services on an hourly fee structure. The fee is payable upon receipt of the invoice for services rendered. Monies are not due in advance of the services being rendered. Our hourly fee schedule is $200.

Our clients can pay their fees by check, or through a debit of their accounts at Charles Schwab and Co., Inc. This election is indicated in the investment advisory contract.   

Neither Paragon nor any of its supervised persons receive any compensation for the sale of securities or other investment products.

All security transactions are brokered through Charles Schwab & Co., Inc. Clients will incur brokerage costs and other transaction costs that will be charged by Charles Schwab & Co., Inc. Please refer to ADV Part 2A, Item 12 for more details.

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