When selecting a financial advisor, the total cost of ownership is often obscured by layers of internal expenses and platform charges. At First Shelbourne, I believe that transparency is a prerequisite for trust. This page outlines the mechanical differences between the independent RIA model and the traditional national franchise model.
Most investors at large national firms are subject to three distinct layers of costs that can significantly erode long-term wealth:
Total Estimated Cost Drag: In a traditional franchise environment, the "all-in" cost to the investor can frequently exceed 2.00% annually.
A primary justification for high-fee active management is the promise of "beating the market." However, empirical data consistently refutes this.
According to the S&P Indices Versus Active (SPIVA) Scorecard, which tracks the performance of active fund managers against their respective benchmarks:
The evidence suggests that after accounting for high internal fees and taxes, the vast majority of high-cost active funds fail to provide the value necessary to justify their expense.
First Shelbourne was established as a fully independent firm specifically to eliminate these corporate layers. My model is built on low-cost efficiency and fiduciary transparency. First Shelbourne also has no fee tiers.
Fee Category | National Franchise Average | First Shelbourne |
|---|---|---|
Direct Advisory Fee | 1.02% | 0.50% |
Platform / Admin Fees | 0.15% - 0.25% | $0.00 |
Investment Expense Ratios | 0.60% - 1.00% | 0.03% - 0.09% |
Total Estimated Drag | ~1.77% - 2.27% | ~0.53% - 0.59% |
National averages based on 2025 AdvisoryHQ and Morningstar fee studies.
By utilizing a curated selection of Index ETFs, I provide clients with broad market exposure while keeping internal costs at a minimum. These ETFs, managed by leading institutional providers, carry expense ratios as low as 0.03% to 0.09%. This ensures that the vast majority of your investment returns remain in your account, rather than being diverted to fund companies or corporate overhead.
As investors become more educated on the impact of fee-drag, they are increasingly seeking out firms that disclose costs upfront. I believe that a firm's refusal to list its fees on its website is a significant indicator of its alignment with its clients.
At First Shelbourne, I offer one of the lowest fee structures in the industry because I have removed the "corporate tax" found at large firms. I answer only to my clients, providing institutional-grade management with no hidden agendas.
Disclosure
First Shelbourne is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where First Shelbourne and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future results. All investment strategies involve risk of loss. Comparison data is for illustrative purposes only. The "National Franchise" data represents a hypothetical average based on industry research; actual fees at other firms may vary. Index ETFs are subject to market risk and are not guaranteed to outperform any benchmark.
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First Shelbourne LLC is a registered investment advisor in New York. Financial advisor services are offered through First Shelbourne LLC, an investment advisory firm domiciled in the State of New York. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by our firm in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or under an applicable state exemption. This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.
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