From: TB 
Newsgroups: misc.invest.financial-plan
Subject: Re: Wachovia Securities - "FundSource"
Date: 6 Apr 2005 03:10:06 GMT
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Jason W. Richardson, Esq., CPA wrote:
> My advisor has given me some information on a relatively new program they
> have for managed accounts through Wachovia.  Is anyone here familiar with
> their "FundSource" program?  It seems to me that it is essentially using
> Wachovia as your money manager as they "manage the managers."  The fees I've
> been quoted are 1/2 of 1% per year.
> 
> It all sounds good.  Plus, as I read this, I think its saying that this 1/2
> of 1% is the only fee - no 12(b)(1) fees, no transaction costs, etc.  I was
> told it normally is closer to 1% but got a break in the "points" for the
> size of the account.

Jason,
I'm not familiar with their program but I'd be very surprised if you can 
get a managed portfolio of funds at a total cost under 100 basis points 
(jargon for 1.00% per year). I'll bet the 0.5% annual fee is on top of 
the expenses of the underlying funds. You should ask them for a copy of 
their Form ADV Part II which is the disclosure document required for 
every fee-based advisor. It will tell you all the costs involved. If the 
mutual fund costs are not built in then you'd need to look at the 
prospectus for each mutual fund to see what they would be.

As part of that you can also see if the 0.5% is their only compensation 
or if the funds they use compensate them in other ways (12b1's).

I'm not clear from your post, you may already know this. And you may 
decide that 0.5% is a fair price for mutual fund selection and periodic 
reallocation - I imagine that's what the fee covers.

-Tad
(fee advisor, not affiliated w/Wachovia)