How UI Keeps Costs Low

Expense minimization is central to our DNA.  Consider, for instance, the home-grown nature of this web site.  Or the complete lack of physical offices, again, to reduce expenses.  We do not spend on advertising, instead growing via referral from existing clients.  To call us cheap is a compliment. Thrifty is perhaps our preferred term, but cheap is perfectly acceptable.   


Non-Custodial Adviser

Unconventional Investor, LLC is a non-custodial adviser and generally UI recommends Vanguard as custodian.  Vanguard is the low cost provider in the mutual fund industry. Of the three dominant mutual fund companies (Vanguard, Fidelity, American) Vanguard is the only one owned by its customers, with no corporate profit motive. A for-profit company has incentive to increase their profits by charging clients higher fees. Clients working with Vanguard sidestep this conflict and enjoy low cost investments. 


Custodial advisers may deduct their fees directly from client accounts; in contrast, Unconventional Investor sends an invoice, providing superior transparency.  Unconventional Investor, LLC trades on client accounts working via Limited Agent Authorization at Vanguard (and Fidelity and Schwab).  This provides trading authority to maintain client portfolios, yet protects investors as the adviser cannot change any name or address information on the account, or add or delete bank accounts linked to the account or change beneficiary information on the account or move money in or out of the account.  


It is considered prudent to separate your adviser and custodian in this manner, though it is not the norm.  Additionally, as a non-custodial adviser, we are faced with significantly lower capital and operating requirements.  This is another way to reduce overall costs, and a contributing factor to our ultra low fees.  


Unconventional Investor leverages the low cost services of Vanguard along with a low cost strategy using index funds and combines our low cost/low overhead model to deliver extraordinary value to clients.