An example of calculating the fee for investment advisory services:
The minimum amount to start cooperation is $5000. Investing the initial amount. In 2025, you deposit $5000 into a brokerage account and use it to buy assets based on our recommendations.
Fixing the results. Every year, as of 31 December, we record the current value of the assets in your account. For example, as of 31 December 2025, the liquidation value of the portfolio is $6000, i.e. the gain is $1000 ($6000 - $5000).
Calculation of net income after taxes. To minimise additional costs (brokerage commissions for selling and buying, income taxes, spreads and other expenses), we calculate taxes and asset sales virtually. This allows you to avoid real commissions and tax charges, preserving your capital and providing an accurate calculation of your net income.
- Taxes are deducted from the $1000 gain at a rate of, for example, 15%: $1000 × 15% = $150 in taxes.
- Net income after taxes: $1000 - $150 = $850.
Calculation of the consulting fee. Our fee is 20% of the net income after taxes: $850 × 20% = $170.
Fixing the capital at the beginning of each year. Every year, on 1 January, we fix the value of your capital at that moment. For example, in the above case, on 1 January 2026, the fixed amount is $6000.
Calculation of fees in subsequent years. In each subsequent year, in order to receive the fee, we must grow your capital so that the liquidation value of the portfolio on 31 December 2026 exceeds $6000.
If the year was unprofitable. If at the end of the year the liquidation value of the portfolio is below the fixed amount ($6000), no fee is charged. In this case, we wait for your capital to grow and exceed the fixed amount. Only then the fee will be calculated.
We do not charge any additional fees for:- any advice or explanation;
- assistance in opening brokerage accounts;
- transferring funds to foreign accounts;
- opening foreign bank accounts;
- other investment-related issues.
If you decide to deposit money into your brokerage account, the manager adds this amount to the previously recorded amount. For example:
- During the year 2026, you decide to add another $4000 to your $6000 lock-in. After the funds are credited to the brokerage account, the new fixed amount will be $10,000.
- If for some reason you decide to withdraw $1000, the locked-in amount will be reduced to $5000.
Why do we use virtual tax calculation and sale of assets? This allows us to avoid:
- Additional brokerage fees for selling and re-purchasing shares;
- Excessive tax burden, as the assets remain in the account and continue to work.
- We invest exclusively for the long term and sometimes close deals after 3 or 10 years.
This way, you optimise costs and let your investments continue to work.