Frequently Asked Questions

 

Most investment advisors charge less for larger accounts. Why does I-Pension take the opposite approach and charge less for smaller retirement plan accounts?

We charge a fixed rate for employer-sponsored retirement plans: $1 a day for accounts over $40,000 and $.50 a day for accounts under $40,000. We do this for two reasons.

  • First, it makes the relative expense comparable. A $182.50 fee on a $30,000 account equals a 0.61% expense; and a $365.00 fee on a $60,000 account also equals a 0.61% expense.
  • Second, our primary goal is to make professional money management affordable and accessible to people at all income levels.

 

Why does I-Pension charge differently for non-employer sponsored investment accounts?

Rather than the fixed rate expense for employer-sponsored retirement plans, we charge an annual fee of 1.0 % of the account value for investment accounts. This charge reflects our ability to evaluate, utilize, and monitor the full range of investment options available. Rather than the dozen or so investment options included in the typical 401(k) plan, there are literally thousands of mutual funds, exchange traded funds, and individual securities that we evaluate for inclusion in our model portfolios.

 

Can't I do all of this on my own without paying I-Pension?

Absolutely. We believe strongly that money management is not rocket science. With a dedication of time and effort, most people can manage their own investment portfolios. Like everything in life, however, it's a trade-off. If you enjoy the investing process, we encourage you to be actively involved in managing your money.

See our Recommended Reading list for some books to help you get started. If there are other ways you'd prefer to spend your time, then I-Pension is there to help.

 

What does the "I" in I-Pension stand for?

The key concept behind I-Pension is helping people save for retirement and then convert their savings into an individual pension plan that can generate income for the rest of one's life. Most simply, the "I" stands for "Individual," but it also represents all the other attributes that an individual pension plan should possess. For example, your individual pension plan should be:

  • Independent
  • Intelligently designed
  • Inflationary to keep pace with the cost of living
  • Inexhaustible
  • Insulated from market volatility
  • Insured
  • Informed
  • Indulgent (you've worked hard and deserve to enjoy yourself)
  • Inevitable (someday you will leave this world and need to think about what you want to do with your remaining assets)

 

Are my fees tax-deductible?

Maybe. For non-employer sponsored accounts you can claim the I-Pension management fee as an itemized deduction. However, the management fee combined with your other miscellaneous deductions must exceed 2% of your AGI (adjusted gross income), and then you can only deduct the amount that exceeds 2% of AGI. (Please remember this is the IRS talking, not I-Pension). The same rules apply to employer-sponsored plan fees, except that the fees must also be paid with dollars outside of the retirement plan.

 

How do I pay for your services?

We accept PayPal, Visa, MasterCard, and American Express payments over our secure website. You can also pay by check. Clients on the Schwab platform can also choose to have our fee debited directly from their account.